The Act
An Act to consolidate and amend the law relating to Customs Duties.
BE it enacted by Parliament in the Twenty-sixth Year of the Republic
of India as follows:-
1. Short title, extent and commencement :
(1) This Act may be called the Customs Tariff Act, 1975.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government
may, by notification in the Official Gazette, appoint.
2. Duties specified in the Schedules to be levied :
The rates at which duties of customs shall be levied under the
Customs Act, 1962 (52 of 1962), are specified in the First and Second
Schedules.
3. Levy of additional duty equal to excise duty :
(1) Any article which is imported into India shall, in addition, be
liable to a duty (hereafter in this section referred to as the
additional duty) equal to the excise duty for the time being leviable
on a like article if produced or manufactured in India and if such
excise duty on a like article is leviable at any percentage of its
value, the additional duty to which the imported article shall be so
liable shall be calculated at that percentage of the value of the
imported article.
Explanation:
In this section, the expression "the excise duty for the time
being leviable on a like article if produced or manufactured in India"
means the excise duty for the time being in force which would be
leviable on a like article if produced or manufactured in India, or,
if a like article is not so produced or manufactured, which would be
leviable on the class or description of articles to which the imported
article belongs, and where such duty is leviable at different rates,
the highest duty.
(2) For the purpose of calculating under this section, the additional
duty on any imported article, where such duty is leviable at any
percentage of its value, the value of the imported article shall,
notwithstanding anything contained in Section 14 of the Customs Act,
1962 (52 of 1962), be the aggregate of -
(i) the value of the imported article determined under sub-section
(1) of the said Section 14 or the tariff value of such article fixed
under sub-section (2) of that section, as the case may be; and
(ii) any duty of customs chargeable on that article under Section 12
of the Customs Act, 1962 (52 of 1962), and any sum chargeable on that
article under any law for the time being in force as an addition to,
and in the same manner as, a duty of customs, but not including the
duty referred to in sub-section (1).
(3) If the Central Government is satisfied that it is necessary in
the public interest to levy on any imported article whether on such
article duty is leviable under sub-section (1) or not such additional
duty as would counter-balance the excise duty leviable on any raw
materials, components and ingredients of the same nature as, or
similar to those, used in the production or manufacture of such
article, it may, by notification in the Official Gazette, direct that
such imported article shall, in addition, be liable to an additional
duty representing such portion of the excise duty leviable on such raw
materials, components and ingredients as, in either case, may be
determined by rules made by the Central Government in this behalf.
(4) In making any rules for the purposes of sub-section (3) of the
Customs Act,1962, the Central Government shall have regard to the
average quantum of the excise duty payable on the raw materials,
components or ingredients used in the production or manufacture of
such like article.
(5) The duty chargeable under this section shall be in addition to
any other duty imposed under this Act or under any other law for the
time being in force.
(6) The provisions of the Customs Act, 1962 (52 of 1962), and the
rules and regulations made thereunder, including those relating to
drawbacks, refunds and exemption from duties, shall, so far as may be,
apply to the duty chargeable under this section as they apply in
relation to the duties leviable under that Act.
3A. Special Additional Duty:
(1) Any article which is imported into India shall in addition be
liable to a duty (hereinafter referred to in this section as the
special additional duty), which shall be levied at a rate to be
specified by the Central Government, by notification in the Official
Gazette, having regard to the maximum sales tax, local tax or any
other charges for the time being leviable on a like article on its
sale or purchase in India:
Provided that until such rate is specified by the Central Government,
the special additional duty shall be levied and collected at the rate
of eight per cent of the value of the article imported into India.
Explanation:
In this sub-section, the expression "maximum sales tax, local
tax or any other charges for the time being leviable on a like article
on its sale or purchase in India" means the maximum sales-tax,
local tax, other charges for the time being in force, which shall be
leviable on a like article, if sold or purchased in India, or if a
like article is not so sold or purchased which shall be leviable on
the class or description of articles to which the imported article
belongs.
(2) For the purpose of calculating under this section the special
additional duty on any imported article, the value of the imported
article shall, notwithstanding anything contained in section 14 of the
Customs Act, 1962 or section 3 of this Act, be the aggregate of-
(i) the value of the imported article determined under sub-section
(1) of section 14 of the Customs Act, 1962 (52 of 1962) or the tariff
value of such article fixed under sub-section (2) of that section, as
the case may be;
(ii) any duty of customs chargeable on that article under section 12
of the Customs Act (52 of 1962), and any sum chargeable on that
article under any law for the time being in force as an addition to,
and in the same manner as, a duty of customs, but not including the
special additional duty referred to in sub-section (1); and
(iii) the additional duty of customs chargeable on that article under
section 3 of this Act.
(3) The duty chargeable under this section shall be in addition to
any other duty imposed under this Act or under any other law for the
time being in force.
(4) The provisions of the Customs Act, 1962 (52 of 1962 and the rules
and regulations made thereunder, including those relating to refunds
and exemptions from duties shall, so far as may be, apply to the duty
chargeable under this section as they apply in relation to the duties
leviable under that Act.
(5) Nothing contained in this section shall apply to any article,
which is chargeable to additional duties levied under sub-section (1)
of section 3 of the Additional Duties of Excise (Goods of Special
Importance) Act, 1957 (58 of 1957);
4. Levy of duty where standard rate and preferential rate are
specified :
(1) Where in respect of any article a preferential rate of revenue
duty is specified in the First Schedule, or is admissible by virtue of
a notification under Section 25 of the Customs Act, 1962 (52 of 1962,
the duty to be levied and collected shall be at the standard rate,
unless the owner of the article claims at the time of importation that
it is chargeable with a preferential rate of duty, being the produce
or manufacture of such preferential area as is notified under
sub-section (3) and the article is determined, in accordance with the
rules made under sub-section (2), to be such produce or manufacture.
(2) The Central Government may, by notification in the Official
Gazette, make rules for determining if any article is the produce or
manufacture of any preferential area.
(3) For the purposes of this section and the First Schedule, "preferential
area" means any country or territory which the Central Government
may, by notification in the Official Gazette, declare to be such area.
(4) Notwithstanding anything contained in sub-section (1), where the
Central Government is satisfied that, in the interests of trade
including promotion of exports, it is necessary to take immediate
action for discontinuing the preferential rate, or increasing the
preferential rate to a rate not exceeding the standard rate, or
decreasing the preferential rate, in respect of an article specified
in the First Schedule, the Central Government may, by notification in
the Official Gazette, direct an amendment of the said Schedule to be
made so as to provide for such discontinuance of, or increase or
decrease, as the case may be, in the preferential rate.
(5) Every notification issued under sub-section (3) or sub-section
(4) shall, as soon as may be after it is issued, be laid before each
House of Parliament.
5. Levy of a lower rate of duty under a trade agreement :
(1) Whereunder a trade agreement between the Government of India and
the Government of a foreign country or territory, duty at a rate lower
than that specified in the First Schedule is to be charged on articles
which are the produce or manufacture of such foreign country or
territory, the Central Government may, by notification in the Official
Gazette, make rules for determining if any article is the produce or
manufacture of such foreign country or territory and for requiring the
owner to make a claim at the time of importation, supported by such
evidence as may be prescribed in the said rules, for assessment at the
appropriate lower rate under such agreement.
(2) If any question arises whether any trade agreement applies to any
country or territory, or whether it has ceased to apply to India or
any foreign country or territory, it shall be referred to the Central
Government for decision and the decision of the Central Government
shall be final and shall not be liable to be questioned in any court
of law.
6. Power of Central Government to levy protective duties in
certain cases :
(1) Where the Central Government, upon a recommendation made to it
in this behalf by the Tariff Commission established under the Tariff
Commission Act, 1951 (50 of 1951), is satisfied that circumstances
exist which render it necessary to take immediate action to provide
for the protection of the interests of any industry established in
India, the Central Government may, by notification in the Official
Gazette, impose on any goods imported into India in respect of which
the said recommendation is made, a duty of customs of such amount, not
exceeding the amount proposed in the said recommendation, as it thinks
fit.
(2) Every duty imposed on any goods under sub-section (1) shall, for
the purposes of this Act, be deemed to have been specified in the
First Schedule as the duty leviable in respect of such goods.
(3) Where a notification has been issued under sub-section (1), the
Central Government shall, unless the notification is in the meantime
rescinded, have a Bill introduced in Parliament, as soon as may be,
but in any case during the next session of Parliament following the
date of the issue of the notification to give effect to the proposals
in regard to the continuance of a protective duty of customs on the
goods to which the notification relates, and the notification shall
cease to have effect when such Bill becomes law, whether with or
without modifications, but without prejudice to the validity of
anything previously done thereunder:
Provided that if the notification under sub-section (1) is
issued when Parliament is in session, such a Bill shall be introduced
in Parliament during that session:
Provided further that where for any reason a Bill as aforesaid
does not become law within six months from the date of its
introduction in Parliament, the notification shall cease to have
effect on the expiration of the said period of six months, but without
prejudice to the validity of anything previously done thereunder.
7. Duration of protective duties and power of Central Government
to alter them :
(1) When the duty specified in respect of any article in the First
Schedule is characterised as protective in Column (5) of that
Schedule, that duty shall have effect only up to and inclusive of the
date, if any, specified in that Schedule.
(2) Where in respect of any such article the Central Government is
satisfied after such inquiry as it thinks necessary that such duty has
become ineffective or excessive for the purpose of securing the
protection intended to be afforded by it to a similar article
manufactured in India and that circumstances exist which render it
necessary to take immediate action, it may, by notification in the
Official Gazette, increase or reduce such duty to such extent as it
thinks necessary.
(3) Every notification under sub-section (2), in so far as it relates
to increase of such duty, shall be laid before each House of
Parliament if it is sitting as soon as may be after the issue of the
notification, and if it is not sitting within seven days of its
re-assembly, and the Central Government shall seek the approval of
Parliament to the notification by a resolution moved within a period
of fifteen days beginning with the day on which the notification is so
laid before the House of the People and if Parliament makes any
modification in the notification or directs that the notification
should cease to have effect, the notification shall thereafter have
effect only in such modified form or be of no effect, as the case may
be, but without prejudice to the validity of anything previously done
thereunder.
(4) For the removal of doubts, it is hereby declared that any
notification issued under sub-section (2), including any such
notification approved or modified under sub-section (3), may be
rescinded by the Central Government at any time by notification in the
Official Gazette.
8. Emergency power of Central Government to increase or levy
export duties :
(1) Where, in respect of any article, whether included in the Second
Schedule or not, the Central Government is satisfied that the export
duty leviable thereon should be increased or that an export duty
should be levied, and that circumstances exist which render it
necessary to take immediate action, the Central Government may, by
notification in the Official Gazette, direct an amendment of the
Second Schedule to be made so as to provide for an increase in the
export duty leviable or, as the case may be, for the levy of an export
duty, on that article.
(2) The provisions of sub-sections (3) and (4) of Section 7 shall
apply to any notification issued under sub-section (1) as they apply
in relation to any notification increasing duty issued under
sub-section (2) of Section 7.
8A. Emergency power of Central Government to increase import
duties :
(1) Where in respect of any article included in the First Schedule,
the Central Government is satisfied that the import duty leviable
thereon under section 12 of the Customs Act (52 of 1962), should be
increased and that circumstances exist which render it necessary to
take immediate action, it may, by notification in the Official
Gazette, direct an amendment of that Schedule to be made so as to
provide for an increase in the import duty leviable on such article to
such extent as it thinks necessary:
Provided that the Central Government shall not issue any
notification under this sub-section for substituting the rate of
import duty in respect of any article as specified by an earlier
notification issued under this sub-section by that Government before
such earlier notification has been approved with or without
modifications under sub-section (2).
(2) The provisions of sub-sections (3) and (4) of Section 7 shall
apply to any notification issued under sub-section (1) as they apply
in relation to any notification increasing duty issued under
sub-section (2) of Section 7.
8B. Power of Central Government to impose safeguard duty :
(1) If the Central Government, after conducting such enquiry as it
deems fit, is satisfied that any article is imported into India in
such increased quantities and under such conditions so as to cause or
threatening to cause serious injury to domestic industry, then, it
may, by notification in the Official Gazette, impose a safeguard duty
on that article:
Provided that no such duty shall be imposed on an article originating
from a developing country so long as the share of imports of that
article from that country does not exceed three per cent or where the
article is originating from more than one developing countries, then,
so long as the aggregate of the imports from all such countries taken
together does not exceed nine per cent of the total imports of that
article into India.
(2) The Central Government may, pending the determination under
sub-section (1) impose a provisional safeguard duty under this
sub-section on the basis of a preliminary determination that increased
imports have caused or threatened to cause serious injury to a
domestic industry:
Provided that where, on final determination, the Central Government
is of the opinion that increased imports have not caused or threatened
to cause serious injury to a domestic industry, it shall refund the
duty so collected:
Provided further that the provisional safeguard duty shall not remain
in force for more than two hundred days from the date on which it was
imposed.
(3) The duty chargeable under this section shall be in addition to
any other duty imposed under this Act or under any other law for the
time being in force.
(4) The duty imposed under this section shall, unless revoked
earlier, cause to have effect on the expiry of four years from the
date of such imposition:
Provided that if the Central Government is of the opinion that the
domestic industry has taken measures to adjust to such injury or
threat thereof and it is necessary that the safeguard duty should
continue to be imposed, it may extend the period of such imposition:
Provided further that in no case the safeguard duty shall continue to
be imposed beyond a period of ten years from the date on which such
duty was first imposed.
(5) The Central Government may, by notification in the Official
Gazette, make rules for the purposes of this section, and without
prejudice to the generality of the foregoing, such rules may provide
for the manner in which articles liable for safeguard duty may be
identified and for the manner in which the causes of serious injury or
causes of threat of serious injury in relation to such articles may be
determined and for the assessment and collection of such safeguard
duty.
(6) For the purposes of this section,-
(a) "developing country" means a country notified by the
Central Government in the Official Gazette for the purposes of this
section;
(b) "domestic industry" means the producers-
(i) as a whole of the like article or a directly competitive article
in India; or
(ii) whose collective output of the like article or a directly
competitive article in India constitutes a major share of the total
production of the said article in India;
(c) "serious injury" means an injury causing significant
overall impairment in the position of a domestic industry;
(d) "threat of serious injury" means a clear and imminent
danger of serious injury.
(7) Every notification issued under this section shall, as soon as
may be after it is issued, be laid before each House of Parliament.
9. Countervailing duty on subsidized articles :
(1) Where any country or territory pays, bestows, directly or
indirectly, any subsidy upon the manufacture or production therein or
the exportation therefrom of any article including any subsidy on
transportation of such article, then, upon the importation of any such
article into India, whether the same is imported directly from the
country of manufacture, production or otherwise, and whether it is
imported in the same condition as when exported from the country of
manufacture or production or has been changed in condition by
manufacture, production or otherwise, the Central Government may, by
notification in the Official Gazette, impose a countervailing duty not
exceeding the amount of such subsidy.
Explanation:
For the purposes of this section, a subsidy shall be deemed to exist
if-
(a) there is financial contribution by a Government, or any public
body within the territory of the exporting or producing country, that
is, where-
(i) a Government practice involves a direct transfer of funds
(including grants, loans and equity infusion), or potential direct
transfer of funds or liabilities, or both;
(ii) Government revenue that is otherwise due is foregone or not
collected (including fiscal incentives);
(iii) a Government provides goods or services other than general
infrastructure or purchases goods;
(iv) a Government makes payments to a funding mechanism, or entrusts
or directs a private body to carry out one or more of the type of
functions specified in clauses (i) to (iii) above which would normally
be vested in the Government and the practice in, no real sense,
differs from practices normally followed by Governments; or
(b) a Government grants or maintains any form of income or price
support, which operates directly or indirectly to increase export of
any article from, or to reduce import of any article into, its
territory, and a benefit is thereby conferred.
(2) The Central Government may, pending the determination in
accordance with the provisions of this section and the rules made
thereunder of the amount of subsidy, impose a countervailing duty
under this sub-section not exceeding the amount of such subsidy as
provisionally estimated by it and if such countervailing duty exceeds
the subsidy as so determined,-
(a) the Central Government shall, having regard to such determination
and as soon as may be after such determination, reduce such
countervailing duty; and
(b) refund shall be made of so much of such countervailing duty which
has been collected as is in excess of the countervailing duty as so
reduced.
(3) Subject to any rules made by the Central Government, by
notification in the Official Gazette, the countervailing duty under
sub-section (1) or sub-section (2) shall not be levied unless it is
determined that-
(a) the subsidy relates to export performance;
(b) the subsidy relates to the use of domestic goods over imported
goods in the export article; or
(c) the subsidy has been conferred on a limited number of persons
engaged in manufacturing, producing or exporting the article unless
such a subsidy is for-
(i) research activities conducted by or on behalf of persons engaged
in the manufacture, production or export;
(ii) assistance to disadvantaged regions within the territory of the
exporting country; or
(iii) assistance to promote adaptation of existing facilities to new
environmental requirements.
(4) If the Central Government, is of the opinion that the injury to
the domestic industry which is difficult to repair, is caused by
massive imports in a relatively short period, of the article
benefiting from subsidies paid or bestowed and where in order to
preclude the recurrence of such injury, it is necessary to levy
countervailing duty retrospectively, the Central Government may, by
notification in the Official Gazette, levy countervailing duty from a
date prior to the date of imposition of countervailing duty under
sub-section (2) but not beyond ninety days from the date of
notification under that sub-section and notwithstanding anything
contained in any law for the time being in force, such duty shall be
payable from the date as specified in the notification issued under
this sub-section.
(5) The countervailing duty chargeable under this section shall be in
addition to any other duty imposed under this Act or any other law for
the time being in force.
(6) The countervailing duty imposed under this section shall, unless
revoked earlier, cease to have effect on the expiry of five years from
the date of such imposition:
Provided that if the Central Government, in a review, is of the
opinion that the cessation of such duty is likely to lead to
continuation or recurrence of subsidisation and injury, it may, from
time to time, extend the period of such imposition for a further
period of five years and such further period shall commence from the
date of order of such extension:
Provided further that where a review initiated before the expiry of
the aforesaid period of five years has not come to a conclusion before
such expiry, the countervailing duty may continue to remain in force
pending the outcome of such a review for a further period not
exceeding one year.
(7) The amount of any such subsidy as referred to in sub-section (1)
or sub-section (2) shall, from time to time, be ascertained and
determined by the Central Government, after such inquiry as it may
consider necessary and the Central Government may, by notification in
the Official Gazette, make rules for the identification of such
article and for the assessment and collection of any countervailing
duty imposed upon the importation thereof under this section.
(8) Every notification issued under this section shall, as soon as
may be after it is issued, be laid before each House of Parliament.
9A. Anti-dumping duty on dumped articles :
(1) Where any article is exported from any country or territory
(hereinafter in this section referred to as the exporting country or
territory) to India at less than its normal value, then, upon the
importation of such article into India, the Central Government may, by
notification in the Official Gazette, impose an anti-dumping duty not
exceeding the margin of dumping in relation to such article.
Explanation:
For the purposes of this section, -
(a) "margin of dumping", in relation to an article, means
the difference between its export price and its normal value;
(b) "export price", in relation to an article, means the
price of the article exported from the exporting country or territory
and in cases where there is no export price or where the export price
is unreliable because of association or a compensatory arrangement
between the exporter and the importer or a third party, the export
price may be constructed on the basis of the price at which the
imported articles are first resold to an independent buyer or if the
article is not resold to an independent buyer, or not resold in the
condition as imported, on such reasonable basis as may be determined
in accordance with the rules made under sub-section (6);
(c) "normal value", in relation to an article, means-
(i) the comparable price, in the ordinary course of trade, for the
like article when meant for consumption in the exporting country or
territory as determined in accordance with the rules made under
sub-section (6); or
(ii) when there are no sales of the like article in the ordinary
course of trade in the domestic market of the exporting country or
territory, or when because of the particular market situation or low
volume of the sales in the domestic market of the exporting country or
territory, such sales do not permit a proper comparison, the normal
value shall be either-
(a) comparable representative price of the like article when exported
from the exporting country or territory or an appropriate third
country as determined in accordance with the rules made under
sub-section (6); or
(b) the cost of production of the said article in the country of
origin along with reasonable addition for administrative, selling and
general costs, and for profits, as determined in accordance with the
rules made under sub-section (6):
Provided that in the case of import of the article from a country
other than the country of origin and where the article has been merely
transhipped through the country of export or such article is not
produced in the country of export or there is no comparable price in
the country of export, the normal value shall be determined with
reference to its price in the country of origin.
(2) The Central Government may, pending the determination in
accordance with the provisions of this section and the rules made
thereunder of the normal value and the margin of dumping in relation
to any article, impose on the importation of such article into India
an anti-dumping duty on the basis of a provisional estimate of such
value and margin and if such anti-dumping duty exceeds the margin as
so determined:-
(a) the Central Government shall, having regard to such determination
and as soon as may be after such determination, reduce such
anti-dumping duty; and
(b) refund shall be made of so much of the anti-dumping duty which
has been collected as is in excess of the anti-dumping duty as so
reduced.
(3) If the Central Government, in respect of the dumped article under
inquiry, is of the opinion that -
(i) there is a history of dumping which caused injury or that the
importer was, or should have been, aware that the exporter practices
dumping and that such dumping would cause injury; and
(ii) the injury is caused by massive dumping of an article imported
in a relatively short time which in the light of the timing and the
volume of imported article dumped and other circumstances is likely to
seriously undermine the remedial effect of the anti-dumping duty
liable to be levied, the Central Government may, by notification in
the Official Gazette, levy anti-dumping duty retrospectively from a
date prior to the date of imposition of anti-dumping duty under
sub-section (2) but not beyond ninety days from the date of
notification under that sub-section, and notwithstanding anything
contained in any law for the time being in force, such duty shall be
payable at such rate and from such date as may be specified in the
notification.
(4) The anti-dumping duty chargeable under this section shall be in
addition to any other duty imposed under this Act or any other law for
the time being in force.
(5) The anti-dumping duty imposed under this section shall, unless
revoked earlier, cease to have effect on the expiry of five years from
the date of such imposition: Provided that if the Central Government,
in a review, is of the opinion that the cessation of such duty is
likely to lead to continuation or recurrence of dumping and injury, it
may, from time to time, extend the period of such imposition for a
further period of five years and such further period shall commence
from the date of order of such extension:
Provided further that where a review initiated before the expiry of
the aforesaid period of five years has not come to a conclusion before
such expiry, the anti-dumping duty may continue to remain in force
pending the outcome of such a review for a further period not
exceeding one year.
(6) The margin of dumping as referred to in sub-section (1) or
sub-section (2) shall, from time to time, be ascertained and
determined by the Central Government, after such inquiry as it may
consider necessary and the Central Government may, by notification in
the Official Gazette, make rules for the purposes of this section, and
without prejudice to the generality of the foregoing, such rules may
provide for the manner in which articles liable for any anti-dumping
duty under this section may be identified, and for the manner in which
the export price and the normal value of, and the margin of dumping in
relation to, such articles may be determined and for the assessment
and collection of such anti-dumping duty.
(7) Every notification issued under this section shall, as soon as
may be after it is issued, be laid before each House of Parliament.
9B. No Levy under section 9 or section 9Ain certain cases :
(1) Notwithstanding anything contained in section 9 or section 9A,-
(a) no article shall be subjected to both countervailing duty and
anti-dumping duty to compensate for the same situation of dumping or
export subsidisation;
(b) the Central Government shall not levy any countervailing duty or
anti-dumping duty-
(i) under section 9 or section 9A by reasons of exemption of such
articles from duties or taxes borne by the like article when meant for
consumption in the country of origin or exportation or by reasons of
refund of such duties or taxes;
(ii) under sub-section (1) of each of these sections, on the import
into India of any article from a member country of the World Trade
Organisation or from a country with whom Government of India has a
most favoured nation agreement (hereinafter referred as a specified
country), unless in accordance with the rules made under sub-section
(2) of this section, a determination has been made that import of such
article into India causes or threatens material injury to any
established industry in India or materially retards the establishment
of any industry in India; and
(iii) under sub-section (2) of each of these sections, on import into
India of any article from the specified countries unless in accordance
with the rules made under sub-section (2) of this section, a
preliminary findings has been made of subsidy or dumping and
consequent injury to domestic industry; and a further determination
has also been made that a duty is necessary to prevent injury being
caused during the investigation:
Provided that nothing contained in sub-clauses (ii) and (iii) of
clause (b) shall apply if a countervailing duty or an anti-dumping
duty has been imposed on any article to prevent injury or threat of an
injury to the domestic industry of a third country exporting the like
articles to India;
(c) the Central Government may not levy -
(i) any countervailing duty under section 9, at any time, upon
receipt of satisfactory voluntary undertakings from the Government of
the exporting country or territory agreeing to eliminate or limit the
subsidy or take other measures concerning its effect, or the exporter
agreeing to revise the price of the article and if the Central
Government is satisfied that the injurious effect of the subsidy is
eliminated thereby;
(ii) any anti-dumping duty under section 9A, at any time, upon
receipt of satisfactory voluntary undertaking from any exporter to
revise its prices or to cease exports to the area in question at
dumped price and if the Central Government is satisfied that the
injurious effect of dumping is eliminated by such action.
(2) The Central Government may, by notification in the Official
Gazette, make rules for the purposes of this section, and without
prejudice to the generality of the foregoing, such rules may provide
for the manner in which any investigation may be made for the purposes
of this section, the factors to which regard shall be at in any such
investigation and for all matters connected with such investigation.
9C. Appeal:
(1) An appeal against the order of determination or review thereof
regarding the existence, degree and effect of any subsidy or dumping
in relation to import of any article shall lie to the Customs, Excise
and Gold (Control) Appellate Tribunal constituted under section 129 of
the Customs Act, 1962 (52 of 1962) (hereinafter referred to as the
Appellate Tribunal).
(2) Every appeal under this section shall be filed within ninety days
of the date of order under appeal:
Provided that the Appellate Tribunal may entertain any appeal after
the expiry of the said period of ninety days, if it is satisfied that
the appellant was prevented by sufficient cause from filing the appeal
in time.
(3) The Appellate Tribunal may, after giving the parties to the
appeal, an opportunity of being heard, pass such orders thereon as it
thinks fit, confirming, modifying or annulling the order appealed
against.
(4) The provisions of sub-sections (1), (2), (5) and (6) of section
129C of the Customs Act, 1962 (52 of 1962) shall apply to the
Appellate Tribunal in the discharge of its functions under this Act as
they apply to it in the discharge of its functions under the Customs
Act, 1962 (52 of 1962).
(5) Every appeal under sub-section (1) shall be heard by a Special
Bench constituted by the President of the Appellate Tribunal for
hearing such appeals and such Bench shall consist of the President and
not less than two members and shall include one judicial member and
one technical member.
10. Rules to be laid before Parliament :
Every rule made under this Act shall be laid, as soon as may be
after it is made, before each House of Parliament, while it is in
session for a total period of thirty days which may be comprised in
one session or in two or more successive sessions, and if before the
expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any
modification in the rule, or both Houses agree that the rule should
not be made, the rule shall, thereafter, have effect only in such
modified form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that rule.
11. Power of Central Government to alter duties under certain
circumstances :
(1) Where the Central Government is satisfied that it is necessary
so to do for the purpose of giving effect to any agreement entered
into before the commencement of this Act with a foreign Government, it
may, by notification in the Official Gazette, increase or reduce the
duties referred to in section 2 to such extent as each case may
require:
Provided that no notification under this sub-section increasing or
reducing the duties as aforesaid shall be issued by the Central
Government after the expiration of a period of one year from the
commencement of this Act.
(2) Every notification issued under sub-section (1) shall, as soon as
may be after it is issued, be laid before each House of Parliament.
12. Repeal and saving :
(1) The Indian Tariff Act, 1934 (32 of 1934), and the Indian Tariff
(Amendment) Act, 1949 (1 of 1949), are hereby repealed.
(2) Notwithstanding the repeal of any of the Acts mentioned in
sub-section (1), anything done or any action taken (including any
notification published and any rules and orders made or deemed to have
been made under the provisions of those Acts and in force immediately
before the commencement of this Act) shall, in so far as such thing or
action is not inconsistent with the provisions of this Act, be deemed
to have been done or taken under the provisions of this Act and shall
continue in force accordingly until superseded by anything done or any
action taken under this Act.
13. Consequential amendment of Act 52 of 1962 :
In the Customs Act, 1962 (52 of 1962), in sub-section (1) of Section
12 and in sub-section (1) of Section 14, for the words and figures "Indian
Tariff Act, 1934", the words and figures "Customs Tariff
Act, 1975" shall be substituted.
The First Schedule - Import Tariff Rules
(See Section 2)
Classification of goods in this Schedule shall be governed by the
following principles:
1. The titles of Sections, Chapters and sub-Chapters are provided for
ease of reference only; for legal purposes, classification shall be
determined according to the terms of the headings and any relative
Section or Chapter Notes and provided such headings or Notes do not
otherwise require, according to the following provisions:
2. (a). Any reference in a heading to an article shall be taken to
include a reference to that article incomplete or unfinished, provided
that, as presented, the incomplete or unfinished article has the
essential character of the complete or finished article. It shall also
be taken to include a reference to that article complete or finished
(or falling to be classified as complete or finished by virtue of this
rule), presented unassembled or dis-assembled.
(b). Any reference in a heading to a material or substance shall be
taken to include a reference to mixtures or combinations of that
material or substance with other materials or substances. Any
reference to goods of a given material or substance shall be taken to
include a reference to goods consisting wholly or partly of such
material or substance. The classification of goods consisting of more
than one material or substance shall be according to the principles of
rule 3.
3. When by application of rule 2(b) or for any other reason, goods
are, prima facie, classifiable under two or more headings,
classification shall be effected as follows:
(a). The heading which provides the most specific description shall
be preferred to headings providing a more general description.
However, when two or more headings each refer to part only of the
materials or substances contained in mixed or composite goods or to
part only of the items in a set put up for retail sale, those headings
are to be regarded as equally specific in relation to those goods,
even if one of them gives a more complete or precise description of
the goods.
(b). Mixtures, composite goods consisting of different materials or
made up of different components, and goods put up in sets for retail
sale, which cannot be classified by reference to (a), shall be
classified as if they consisted of the material or component which
gives them their essential character, insofar as this criterion is
applicable.
(c). When goods cannot be classified by reference to (a) or (b), they
shall be classified under the heading which occurs last in numerical
order among those which equally merit consideration.
4. Goods which cannot be classified in accordance with the above
rules shall be classified under the heading appropriate to the goods
to which they are most akin.
5. In addition to the foregoing provisions, the following rules shall
apply in respect of the goods referred to therein:
(a) Camera cases, musical instrument cases, gun cases, drawing
instrument cases, necklace cases and similar containers, specially
shaped or fitted to contain a specific article or set of articles,
suitable for long-term use and presented with the articles for which
they are intended, shall be classified with such articles when of a
kind normally sold therewith. This rule does not, however, apply to
containers which give the whole its essential character;
(b) Subject to the provisions of (a) above, packing materials and
packing containers presented with the goods therein shall be
classified with the goods if they are of a kind normally used for
packing such goods. However, this provision does not apply when such
packing materials or packing containers are clearly suitable for
repetitive use.
6. For legal purposes, the classification of goods in the
sub-headings of a heading shall be determined according to the terms
of those sub-headings and any related sub-heading Notes and, mutatis
mutandis, to the above rules, on the understanding that only
sub-headings at the same level are comparable. For the purposes of
this rule the relative Section and Chapter Notes also apply, unless
the context otherwise requires.
General Explanatory Notes
1. Where in column (3) of this Schedule, the description of an
article or group of articles under a heading is preceded by "-",
the said article or group of articles shall be taken to be a
sub-classification of the article or group of articles covered by the
said heading. Where, however, the description of an article or group
of articles is preceded by "--", the said article or group
of articles shall be taken to be a sub-classification of the
immediately preceding description of the article or group of articles
which has "-".
2. The abbreviation "%" in any column of this Schedule in
relation to the rate of duty indicates that duty on the goods to which
the entry relates shall be charged on the basis of the value of the
goods as defined in section 14 of the Customs Act, 1962 (52 of 1962),
the duty being equal to such percentage of the value as is indicated
in that column In any entry, if no rate of duty is shown in column
(5), the rate shown under column (4) shall be applicable
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Tariff Act, 1975 
