Imports and Customs Experts Consultant in India
Project Imports Scheme is a concept, unique to Indian Customs, wherein all the goods imported for the purpose of setting up of Industrial Project or substantial expansion of existing industrial projects is subjected to single classification under heading 98.01 of Custom Tariff Act, 1975 and subjected to a single rate of duty instead of merit assessment of imported goods.
Normally, imported goods are classified separately under different tariff headings and assessed to applicable Customs duty, but as variety of goods are imported for setting up an industrial project, their separate classification and valuation for assessment of duty becomes cumbersome.
Further, the suppliers of a contracted project, do not value each and every item or parts of machinery which are supplied in stages. Hence, ascertaining values for different items delays assessment leading to over running in time and cost of the project.
Therefore, to facilitate smooth and quick assessment by a simplified process of classification and valuation, the goods imported under Project Import Scheme are placed under a single Tariff in the Customs Tariff Act, 1975. This facilitates assessment and ensures faster clearances of goods.
Projects Eligible under Project Imports
Under the Scheme of Project Import, the following projects are covered: –
o Industrial Plant,
o Irrigation Project,
o Power Project,
o Mining Project,
o Project for the exploration for oil or other minerals, and
o Such other projects as the central government may, having regard to the economic development of the country notify in the Official Gazette. Thus, a number of notifications have been issued notifying a large number of projects for assessment under Tariff Heading 9801.
In the Union Budget 2022, the Government announced that all the projects registered after 30th September 2022 shall be charged Basic Customs Duty at the rate of 7.5%.
