Export tariff to wait for Budget 2012 for rectification of anomaly
4th January, 2012
Customs Tariff has been amended from 1st January, 2012 as per relevant provisions of Finance Act, 2011. The Central Board of Excise & Customs has issued several notifications to amend existing exemption notifications to reflect the changes in tariff headings and sub-headings.
As per Finance Act, 2011, First Schedule to Customs Tariff Act, 1975 stands amended from this year while no such amendment was provided in respect of Second Schedule which deals with export tariff.
In the batch of notifications issued by the C.B.E. & C. exemption notification providing for effective rate of export duty on specified goods has also been amended. This exemption notification now carries new tariff headings whereas there has been no change in respect of classification of such items in the Second Schedule.
Cardamom and groundnut are the items getting the benefit of revised classification from this year as per recent Notification No. 117/2011-Cus., dated 29-12-2011. A retrospective amendment to Second Schedule to Customs Tariff Act can be expected in Budget 2012 to rectify this anomaly. For the present, the amending notification may also be visited with another amendment keeping the effective date in abeyance till the Second Schedule is amended.