Sector and Industry specific

Drugs and Pharmaceuticals:

• Reduce basic customs duty on diagnosis reagents/ laboratory reagents from 12.5% to 7.5%
• Reduce customs duty to 5% on import of raw materials for molecules for Abbreviated New Drug Application.

Electric Fans:

• Excise duty on domestic type electric fans should be reduced from 16% to 8% for the benefit of the electric fan manufacturers in the organized sector and the users.
• The review of abatement on RSP for electric fans needs to be expedited.
• Reduce customs duty on copper and aluminium from 7.5% to 5%

Electrical Machinery

• Allow import of inputs by indigenous manufacturers at 5% customs duty for manufature of 23 specified high voltage transmission equipment i. e. at par with the end product.
• Impose 4% special CVD on import of 23 specified equipment for high voltage transmission projects and for power transmission, sub-transmission or distribution projects by removal of exemption to create a level playing field for th indigenous manufacturers.

Ferro Alloys

• Customs duty on vanadium pentaoxide imported for manufacture of ferro alloys should be reduced from 12.5% to 5%.
• Excise duty of ferro alloy slag should be reduced from 16% to NIL, as it has no commercial value.

Food Processing & Agro-based Products

• Excise duty on processed food and agro based products(excluding aerated water, pan masala, tobacco products and sugar) falling under chapters 4,17,18,19, 20, 21, &22 and having excise duty of 16% should be reduced to 8%.
• Excise duty on similar food products should be brought at par.
• Reduce customs duty on sophisticated fod processing machinery not available indigenously.
• Reduce customs duty on cocoa beans from 30% to 20%

Machine Tools

• Reduce customs duty on CNC systems and its parts from 12.5% to 5%.
• Reduce customs duty from 12.5% to 5% on following component parts not manufactured in India and used for manufacturer of machine tools:
  
  Servo motors drives;
  Precision spindles;
  Ball screws;
  Linear motion guide ways;
  High precision bearings;
  In-process precision gauging and balancing systems.

Medical equipment & furniture

• Reduce customs duty to 5% on the following by including these in List 37.
• Parts required for manufacture of spare parts for maintenance of medical equipment may be included in Sl no. 363, 367 and 368 of customs notification 21/2002.
• Reduce customs duty to NIL on special grade stainless steel, titanium, cobalt chrome alloys and high density polyethylene used for manufacture of orthopaedic implants.
• Reduce customs duty on diagnosis/laboratory reagents from 12.5% to 7.5%

Office automation equipment

• A broader view needs to be taken for the multifunctional devices (MFD), moving images digital cameras and large format printers developed after conclusion of IT Agreement to extend the benefit of NIL: customs duty to such products.
• The issues related its adoption of HS 2007 for office automation equipment should be resolved before its implementation on 1st January 2007. Also ensure that all items that are having zero customs duty under ITA continue to do so post HS 2007.

Pesticides for Agriculture

• Reduce excise duty from 16% to 8% on both technical grade pesticides and formulations uded in agriculture.

Set-top Box

• Increase customs duty on set-top box from NIL to 5%.

Steel

• Reduce customs duty on melting scrap of iron and steel from 5% to 2%.
• Reduce customs duty on furnace oil as well as graphite electrodes of size above 24 inches diameter from 10% to 5% and on zinc from 7.5% to 5%.
• Warehousing provision without payment of excise duty may be extended tosteel manufacturers by a notification under Rule 20 of the Central Excise Rules, 2002.
• Insert appropriate note in Chapter 72 to bring the activity of cutting of HR/CR coils of iron and non-alloy steel into sheets of slitting of coils/sheets into strips under the category of manufacture.