Centre hikes basic customs duty on 19 items; jet fuel, ACs, refrigerators to cost more

In a bid to cut the Current Account Deficit (CAD), the Narendra Modi government on Wednesday increased basic customs duty on select items. The prices of AC, refrigerators and washing machines will increase after the move to curb the import of certain imported items.

Flying in aeroplanes will also become dearer as the customs duty tariffs on Aviation turbine fuel were also increased. The revision in the rates of basic customs duty (BCD) will be effective from midnight of September 26.

"The central government has taken tariff measures, by way of increase in the basic customs duty, to curb import of certain imported items. These changes aim at narrowing the current account deficit (CAD) ... In all the customs duty has been increased on 19 items,” the Finance Ministry said in a statement.

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The ministry said that total import bill on account of shipment of these items into the country in the last fiscal year was Rs 86,000 crore.

Curbing non-essential imports was part of the five-pronged steps announced by the government earlier this month to check expanding CAD amid the depreciation of the rupee.

“To address the issue of expanding CAD, the government will take necessary steps to cut down non-essential imports and increase exports. The commodities of which imports will be cut down will be decided after consultations with concerned ministries and will be WTO-compliant,” Finance Minister Arun Jaitley had said.

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Below is the list of 19 items on which the customs duty has been increased:

1. Air conditioners       
2. Household Refrigerators
3. Washing machines less than 10 kg
4. Compressor for air conditioners and refrigerators
5. Speakers
6. Footwears
7. Radial Car tyres
8. Non industrial diamond (other than rough diamonds), i.e., cut and polished diamond
9. Diamonds-semi processed, half cut or broken
10. Lab grown diamonds
11. Cut and polished Colored gemstone
12. Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal
13. Articles of Goldsmith or silversmith wares and parts thereof of precious metal or of metal clad with precious metal
14. Bath, shower bath, sink, wash basin, etc. of plastics
15. Articles of plastics for conveyance and packing such as boxes, case, containers, bottles, insulated ware etc.
16. Tableware, kitchenware and other household items of plastics
17. Miscellaneous items of plastics such as office stationery, fitting for furniture’s, decorative sheets, statuettes, beads, bangles etc.
18. Trunks, Suitcase, Executive cases, Brief Cases, travel bags and other bags etc
19. Aviation turbine fuel