Feb. 28, 2013
Members of the Council,
Sub : Highlights of Union Budget 2013-14
As members are aware, the Union Budget 2013-14 was presented today by the Hon’ble Union Finance Minister
Shri P. Chidambaram.
As far as the leather sector is concerned, the major measure announced was concerning extension of 5% concessional Basic Customs Duty Duty for certain specified machinery used in leather industry. Serial no. 390 of the Customs Notification (Tariff) No. 12/2012 dated 17th March 2012 contains the list of machinery (listed under list 29) that are eligible for 5% concessional Basic Customs Duty for import into India, as against the normal Basic Customs Duty of 7.5% applicable for machinery used in leather sector falling under tariff no. 8453. CLE had taken-up the request for amending description of certain machinery listed under aforesaid list 29 and for including new machinery in its pre-budget proposals. Accordingly, an announcement was made in the Union Budget 2013-14, that duty on specified machinery for manufacture of leather and leather goods including footwear has been reduced from 7.5% to 5%. In this context, Customs Notification No.12/2013 dated 1st March 2013 (copy enclosed) has been issued amending description of certain machinery listed under aforesaid list 29 and for including new machinery in the List.
Members may kindly note the above.
R. Ramesh Kumar IAS
COUNCIL FOR LEATHER EXPORTS