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82 Economic Survey 2021-22
been increased in recent years on such items which are being manufactured in India or which
domestic industry aspires to manufacture. Accordingly, during the last 6 years, about 4000 tariff
lines (approximately 1/3 of total tariff lines) have seen upward calibration of BCD. Such items
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include, metals, metal products, auto parts, footwear, fabrics, garments, specified chemicals,
toys, certain machinery, medical equipment, a number of MSME items like bells, gongs, ceramic
wares, table ware, utensils, hardware etc, consumer electronics and home appliances including
mobile, TV, refrigerators, washing machine, AC, fans, heaters, hair dryers, shavers, toasters,
ovens etc. At the same time, duties of inputs and raw materials have been rationalized.
Under the Phased Manufacturing Plan (PMP) in respect of significant products like mobile
phones, other electronic goods like TVs, electric vehicles, batteries, solar panel etc, the BCD
rates in respect of different stages of the value chain of these products are calibrated in a manner
that encourages gradual deepening of domestic value addition. For example, in respect of mobile
phones, initially the parts were placed under nil BCD while duty was imposed on mobiles.
Gradually, duty has been raised on parts in phased manner as their production began in India.
Changes in Customs Law and Procedure:
¾ In order to ensure swift and secure movement of dutiable goods from port of import to
customs warehouse, CBIC has launched the use of ECTS (Electronic Cargo Tracking
System) in Oct 2021. This concept is borrowed from transhipment procedure for cargo
meant for neighbouring countries.
¾ CBIC has launched version 2 of online application for filing, real time monitoring and
digital certification for on boarding Authorized Economic Operators (AEOs) Tier 2 and
Tier 3.
¾ In addition, CBIC has taken major decisions which would lead to significant reduction of
dwell time and faster Customs clearances on import. The facilitation percentage has been
increased to 90 per cent w.e.f. 15th July 2021. Linked to this enhanced facilitation, the
scheme of Direct Port Delivery (DPD) has been revamped to a Customs document based
DPD from the previous client based DPD.
¾ CBIC has introduced Risk Management System (RMS) to facilitate faster drawback
disbursal for genuine exporters and to help in better checking of fraudulent drawback claims
on exports.
¾ CBIC has launched the Indian Customs Compliance Information Portal (CIP) for providing
free access to information on all Customs procedures and regulatory compliance for nearly
12,000 Customs Tariff Items.
¾ To address the shortage of containers across the Country, CBIC issued instructions to enable
more availability of containers for exports.
¾ Remission of Duties and Taxes on Exported Products Scheme enables issue of Export Rebate in
the form of a transferable duty credit/ electronic scrip (e-scrip) which will be maintained in an
electronic ledger by the CBIC. This revamped end-to-end automated scheme aims to provide a
boost to Indian exports by providing a level playing field to domestic industry abroad.