Sector and Industry specific

Synthetic Fibres & Yarns

• Reduce Customs duty of PTA, DMT, MEG, caprolactum and polyester chips from 10% to 7.5%.
• Customs duty on 1, 4 Butanediol (2905 39 10), which is an alternate material to MEG, should also be reduced from 12.5% to 7.5% i. e. at par with recommended rate for MEG.
• Reduce customs duty on methyl acrylate, dimethyl formamide and spin finish oil from 12.5% to 10%.
• Reduce customs duty on nylon 6,12 chips used for manufacture of nylon monofilament from 12.5% to 10%.
• Reduce excise duty from 16% to 8% on caprolactum and nylon 6, 12 chips.
• Excise duty on 1,4 Butanediol (2905 39 10) should be reduced from 16% to 12% to bring at par with excise duty on MEG.

Telecommunication Equipment

• Reduce customs duty to 5% on capital goods required for manufacture of telecommunication equipment covered by IT Agreement.
• Extend NIL customs duty concession to inputs required for manufacture of components/sub assemblies of goods covered by IT Agreement.
• Clarification needs to be issue that microwave equipment is allowed for import at NIL customs duty under sl no. 239 of customs notification 21/2002.

Textiles

• Technology Upgradation Fund Scheme for the textile industry should be further extended beyond 31st March 2007.
• Option for either availing of full exemption of excise duty or payment of 4% excise duty on cotton goods and 8% for other textile goods with CENVAT Credit should be continued.
• Necessary clarification may be issued to allow the textile manufacturers to avail the benefit of excise notifications 29/2004 and 30/2004 simultaneously without insistence of maintaining separate books of accounts for inputs.
• Suitable provision may be made for sourcing consumables specified in sl. No. 167 of customs notification 21/2002 from domestic manufacturers by the textile and leather garments exporters within their duty free quota of 3% without payment of applicable duties.

Textile Machinery

• Wherever import of textile machines have been allowed at customs duty of 5%, the indigenous manufacturers should be allowed to import all its inputs including raw materials falling under any chapter at the same duty rate.
• Reduce CVD to NIL on parts required for manufacture of those textile machines and equipment, which attract NIL CVD.
• All equipment supplied to R&D Industries. IIT’s should be exempted from payment of excise duty with benefit of CENVAT credit, as CVD is exempted on imported equipment.

Tiles

• Customs duty on all inputs for ceramic tiles attracting duty rate of 7.5/10/12.5% should be reduced to 5% by an end use notification.

Tyres

• Reduce Customs duty from 20% to 10% on natural rubber smoked sheets (4001 21 00) and technically specified natural rubber ( 4001 22 00) subject to tariff rate quota allocation in a financial year.
• In case of polyester tyre cord and butyl rubber, customs duty should be 2.5% less than duty applicable on tyres and tubes.

Vanaspati

• Impose quantitive restriction of 100,000 tonnes on import of duty free vanaspati from Sri Lanka.
• Extend the 70% customs duty rate on crude palm oil beyond 31st December 2006 in the interest of vanaspati manufacturers and consumers.
• Exempt 4% special CVD on crude palm oil imported for manufacture of vanaspati including bakery shortening and margarine.