Basic custom duty on acyclic & cyclic hydrocarbons rationalised to 2.5%

In the budget 2016, a number of initiatives have been proposed for chemicals and fertilisers sectors. Excise duty on physical mixture of fertilisers, made out of chemical fertilisers on which duty of excise has been paid, by co-operative societies, holding certificate of manufacture for mixture of fertilisers under the Fertilizer Control Order 1985, for supply to the members of such co- operative societies, is being exempted.
 
Actual user condition for the imports of phosphoric acid and anhydrous ammonia at concessional basic custom duty (BCD)/CVD for manufacture of fertilisers has been proposed in the budget.
 
“Customs and excise duty structure plays an important role in incentivising domestic value addition towards Make in India campaign of the Government. In line with that, the Government has proposed to make suitable changes in customs and excise duty rates on certain inputs, raw materials, intermediaries and components and certain other goods and simplify procedures, so as to reduce costs and improve competitiveness of domestic industry in sectors like chemicals & petrochemicals and many other sectors,” said the Ministry of Chemicals and Fertilizers in press release.