CHAPTER 98 (Chapter Notes)

Relevant Judgements

Tariff Item	Description of goods	Unit	Policy	Rate of duty                                         SWS : 10%
				Standard	Preferential Areas	Effective rate of duty	Specified countries
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
9801	ALL ITEMS OF MACHINERY INCLUDING PRIME MOVERS, INSTRUMENTS, APPARATUS AND APPLIANCES, CONTROL GEAR AND TRANSMISSION EQUIPMENT, AUXILIARY EQUIPMENT (INCLUDING THOSE REQUIRED FOR RESEARCH AND DEVELOPMENT PURPOSES, TESTING AND QUALITY CONTROL), AS WELL AS ALL COMPONENTS (WHETHER FINISHED OR NOT) OR RAW MATERIALS FOR THE MANUFACTURE OF THE AFORESAID ITEMS AND THEIR COMPONENTS, REQUIRED FOR THE INITIAL SETTING UP OF A UNIT, OR THE SUBSTANTIAL EXPANSION OF AN EXISTING UNIT, OF A SPECIFIED : (1) industrial plant, (2) irrigation project, (3) Power project, other than solar power plant or solar power project (4) mining project, (5) project for the exploration for oil or other minerals, and (6) Such other projects, other than solar power plant or solar power project, as the Central Government may, having regard to the economic development of the country notify in the Official Gazette in this behalf; and spare parts, other raw materials (including semi-finished material) or consumable stores not exceeding 10% of the value of the goods specified above provided that such spare parts, raw materials or consumable stores are essential for the maintenance of the plant or project mentioned in (1) to (6) above
9801 00	- All items of machinery including prime movers, instruments, apparatus and appliances, control gear and transmission equipment, auxiliary equipment (including those required for research and development purposes, testing and quality control), as well as all components (whether finished or not) or raw materials for the manufacture of the aforesaid items and their components, required for the initial setting up of a unit, or the substantial expansion of an existing unit, of a specified : (1) industrial plant, (2) irrigation project, (3) power project, other than solar power plant or solar power project (4) mining project, (5) project for the exploration for oil or other minerals, and (6) such other projects, other than solar power plant or solar power project as the Central Government may, having regard to the economic development of the country notify in the Official Gazette in this behalf; and spare parts, other raw materials (including semifinished materials of consumable stores) not exceeding 10% of the value of the goods specified above, provided that such spare parts, raw materials or consumable stores are essential for the maintenance of the plant or project mentioned in (1) to (6) above :
	--- Machinery :
9801 00 11	---- For industrial plant project	kg.	Free	7.5%	-	BCD: Nil 3,4.. 3,4,5,6,8 /2.5%3,8 /5%8 IGST: 18% AIDC: 5% SWS: NIL	Japan: Nil
9801 00 12	---- For irrigation plant	kg.	Free	7.5%	-	BCD: Nil 3,4.. 3,4,5,6,8 /2.5%3,8 /5%8 IGST: 18% AIDC: 5% SWS: NIL	Japan: Nil
9801 00 13	---- For power project, other than solar power plant or solar power project	kg.	Free	7.5%	-	BCD: Nil 3,4.. 3,4,5,6,8 /2.5%3,8 /5%8 IGST: 18% AIDC: 5% SWS: NIL	Japan: Nil
9801 00 14	---- For mining project	kg.	Free	7.5%	-	BCD: Nil 3,4.. 3,4,5,6,8 /2.5%3,8 /5%8 IGST: 18% AIDC: 5% SWS: NIL	Japan: Nil
9801 00 15	---- Project for exploration of oil or other minerals	kg.	Free	7.5%	-	BCD: Nil 3,4.. 3,4,5,6,8 /2.5%3,8 /5%8 IGST: 18% AIDC: 5% SWS: NIL	Japan: Nil
9801 00 19	---- For other projects, other than solar power plant or solar power project	kg.	Free	7.5%	-	BCD: Nil 3,4.. 3,4,5,6,8 /2.5%3,8 /5%8 IGST: 18% AIDC: 5% SWS: NIL	Japan: Nil
9801 00 20	--- Components (whether or not finished or not) or raw materials for the manufacture of aforesaid items required for the initial setting up of a unit or the substantial expansion of a unit	kg.	Free	7.5%	-	BCD: Nil 3,4.. 3,4,5,6,8 /2.5%3,8 /5%8 IGST: 18% AIDC: 5% SWS: NIL	Japan: Nil
9801 00 30	--- Spare parts and other raw materials (including semi-finished materials or consumable stores for the maintenance of plant or project	kg.	Free	7.5%	-	BCD: Nil 3,4.. 3,4,5,6,8 /2.5%3,8 /5%8 IGST: 18% AIDC: 5% SWS: NIL	Japan: Nil
9802 00 00	LABORATORY CHEMICALS	kg.	Free	2[150%] [helldodold[10%]helldod]	-	BCD: 10%2 /12.5%2 IGST: 18% AIDC: 5%
9803 00 00	ALL DUTIABLE ARTICLES, IMPORTED BY A PASSENGER OR A MEMBER OF A CREW IN HIS BAGGAGE	kg.	Restricted	100%	-	BCD: 10%2 /12.5%2 IGST: NIL AIDC: 5%
9804	ALL DUTIABLE GOODS IMPORTED FOR PERSONAL USE
9804 10 00	- Drugs and medicines	kg.	Free	35%	-	BCD: Nil1,7,9 /10% IGST: 5%/12%/28% AIDC: 5%
9804 90 00	- Other	kg.	Free	35%	-	BCD: Nil  IGST: 5%/12%/28% AIDC: 5%
9805	THE FOLLOWING ARTICLES OF STORES ON BOARD OF A VESSEL OR AIRCRAFT ON WHICH DUTY IS LEVIABLE UNDER THE CUSTOMS ACT, 1962 (52 OF 1962), NAMELY:
9805 10 00	- Prepared or preserved meat, fish and vegetables; dairy products; soup; lard; fresh fruits	kg.	Free	10%	-	BCD: 10%2 /12.5%2 AIDC: 5%
9805 90 00	- All other consumable stores excluding fuel, ubricating oil, alcoholic drinks and tobacco products	kg.	Free	10%	-	BCD: 10%2 /12.5%2 AIDC: 5%
9806 00 00	- All goods originating in or exported from the Islamic Republic of Pakistan	-		200%	-	BCD: 10%2 /12.5%2 AIDC: 5%
1[9807	Specified actionable claim
9807 10 00	- Actionable claim involved in or by way of betting	-		Nil	-	BCD: 10%2 /12.5%2 AIDC: 5%
9807 20 00	- Actionable claim involved in or by way of casinos	-		Nil	-	BCD: 10%2 /12.5%2 AIDC: 5%
9807 30 00	- Actionable claim involved in or by way of gambling	-		Nil	-	BCD: 10%2 /12.5%2 AIDC: 5%
9807 40 00	- Actionable claim involved in or by way of horse racing	-		Nil	-	BCD: 10%2 /12.5%2 AIDC: 5%
9807 50 00	- Actionable claim involved in or by way of lottery	-		Nil	-	BCD: 10%2 /12.5%2 AIDC: 5%
9807 60 00	- Actionable claim involved in or by way of online money gaming	-		Nil	-]	BCD: 10%2 /12.5%2 AIDC: 5%

Conditions

1. If, -

(a) the goods are imported by an individual for personal use;

(b) it is certified in the Form as applicable and specified below, by the Director General or Deputy Director General or Assistant Director General, Health Services, New Delhi, Director of Health Services of the State Government or the District Medical Officer/Civil Surgeon of the district, in each individual case

(1) Form for medicines used for treatment of Spinal Muscular Atrophy/Duchenne Muscular Dystrophy covered under sub-clause(iii) of clause (c) of S. No.607 of the Table.
Certificate No....………. of …...…….. (year)
Certified that the medicine………………….(name of the medicine) to be used for the treatment of ……………….............( patient name), is a life saving medicine used specifically for Spinal Muscular Atrophy /Duchenne Muscular Dystrophy and exemption from the payment of customs duty and Integrated GST is recommended.

Signature with date of Director General /
Deputy Director General /
Assistant Director General,
Health Services, New Delhi or
Director of Health Services or
District Medical Officer/Civil Surgeon.

or

(2) Form for life saving drugs or medicines, not covered under (1) above, being imported under clause (b) of S. No. 607 of the Table.

Certificate No....………. of …...…….. (year)
Certified that the drug / medicine………………….(name of the drug / medicine) to be used for the treatment of ……………….......( patient name), is a life saving drug / medicine for…………………..( disease name) and exemption from the payment of customs duty is recommended.

Signature with date of Director General /
Deputy Director General /
Assistant Director General,
Health Services, New Delhi or
Director of Health Services or
District Medical Officer/Civil Surgeon.

and

(c) the importer produces the said certificate to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, at the time of clearance, or gives an undertaking as acceptable to the Deputy Commissioner or the Assistant Commissioner to furnish the said certificate within such period as may be specified by the Deputy Commissioner or the Assistant Commissioner, failing which to pay duty leviable thereon.

(Vide:- Notification No.50/2017-Condition No- 16)

2. If,-
1. (a) the duty is paid in convertible foreign currency;
(b) the quantity of import does not exceed one kilograms of gold and ten kilograms of silver per eligible passenger; and
2. the gold or silver is,-
(a) carried by the eligible passenger at the time of his arrival in India, or
(b) the total quantity of gold under items (i) and (ii) of Sr. No. 356 does not exceed one kilogram and the quantity of silver under Sr. No. 357 does not exceed ten kilograms per eligible passenger; and
(c ) is taken delivery of from a customs bonded warehouse of the State Bank of India or the Minerals and Metals Trading Corporation Ltd., subject to the conditions 1 ;
Provided that such eligible passenger files a declaration in the prescribed form before the proper officer of customs at the time of his arrival in India declaring his intention to take delivery of the gold or silver from such a customs bonded warehouse and pays the duty leviable thereon before his clearance from customs.
Explanation.- For the purposes of this notification, "eligible passenger" means a passenger of Indian origin or a passenger holding a valid passport, issued under the Passports Act, 1967 (15 of 1967), who is coming to India after a period of not less than six months of stay abroad; and short visits, if any, made by the eligible passenger during the aforesaid period of six months shall be ignored if the total duration of stay on such visits does not exceed thirty days and such passenger has not availed of the exemption under this notification or under the notification being superseded at any time of such short visits (Vide:- Notification No.50/2017-Condition No- 41)

3. If an officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Power certifies that:-
(i) the power purchasing State has constituted the Regulatory Commission with full powers to fix tariffs;
(ii) the power purchasing states shall undertake to carry out distribution reforms as laid down by Ministry of Power.
(a) In case of imports for a project for which certificate regarding Mega Power Project status issued by an officer not below the rank of Joint Secretary to the Government of India in the Ministry of Power is provisional, the importer furnishes a security in the form of a Fixed Deposit Receipt or Bank Guarantee from any Scheduled Bank for a term of one hundred and sixty-two months in the name of the President of India for an amount equal to the duty of customs payable on such imports but for this exemption, to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, at the time of importation and if the importer fails to furnish the final mega power status certificate with in a period of one hundred and fifty-six months from the date of importation, the said security shall be appropriated towards duty of customs payable on such imports but for this exemption:

Provided that in case of provisional Mega Power Projects , the security in the form of a Fixed Deposit Receipt or Bank Guarantee may be released proportionately as per the proportionate mega certificate issued by the said Joint Secretary to the Government of India in the Ministry of Power
(b) In the case of imports by a Central Public Sector Undertaking, the quantity, total value, description and specifications of the imported goods are certified by the Chairman and Managing Director of the said Central Public Sector Undertaking; and
(c) In the case of imports by a Private Sector Project, the quantity, total value, description and specifications of the imported goods are certified by the Chief Executive Officer of such project.  (Vide:- Notification No.50/2017-Condition No- 95)

4. (a) In the case of imports by the constituent units of the Department of Atomic Energy, the quantity, total value, description and specifications of the imported goods are certified by an officer not below the rank of a Joint Secretary to the Government of India in the Department of Atomic Energy.
(b) In the case of imports by a Central Public Sector Undertaking, the quantity, total value, description and specifications of the imported goods are certified by the Chairman and Managing Director of the said Central Public Sector Undertaking;  (Vide:- Notification No.50/2017-Condition No- 96)

5. The LNG facility is certified by an officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Power as being an integral part of the said power project of M/s Ratnagiri Gas and Power Private Limited at Dabhol.  (Vide:- Notification No.50/2017-Condition No- 97)

6. If the importer, at the time of import, produces to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, a certificate from an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Heavy Industries and Public Enterprises (Department of Heavy Industry), certifying that the imported goods (having regard to their description, quantity and technical specifications) are intended for use in the National Automotive Testing and Research and Development Infrastructure Project (NATRIP). (Vide:- Notification No.50/2017-Condition No- 98)

7. If the importer at the time of import-

(a) the goods are imported by an individual for personal use; 

(b) it is certified in the Form below, by the Director General or Deputy Director General or Assistant Director General, Health Services, New Delhi, Director of Health Services of the State Government or the District Medical Officer/Civil Surgeon of the district, in each individual case, that the goods are life saving drugs or medicines (Regarding description, quantity and technical specificity); and

(c) furnishes an undertaking to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, to the effect that the imported goods shall be used for the personal purpose and he shall pay, on demand, in the event of his failure to use the imported goods for the said purpose, an amount equal to the difference between the duty leviable on such quantity of the imported goods but for the exemption under this notification;

FORM

Certificate No.............. of .............(year)

Certified that the ...................... (name of the drug/ medicine) being imported by ...............................(name of the patient) is a life saving drug/medicine and required in ........................ (quantity) for treatment period .........(months) and exemption from the payment of IGST is recommended.

Signature with date of Director General /
Deputy Director General / 
Assistant Director General, Health Services, New Delhi or 
Director of Health Services or 
District Medical Officer/Civil Surgeon”]

(Vide:- Notification No.50/2017-Condition No- 104)

8. If the goods have been imported against contracts registered on or before 30th September, 2022 with the appropriate Custom House in compliance with the Project Imports Regulations, 1986. (Vide:- Notification No.50/2017-Condition No- 111)

9. If the goods are imported by, -

(a) a Centre of Excellence listed in List 35; or
(b) any person or institution on recommendation of any Centre of Excellence listed in List 35, certifying that the person (by name) for whom the Drugs, Medicines or Food for Special Medical Purposes (FSMP) are being imported, is suffering from a rare disease (to be specified by name) and requires these Drugs, Medicines or Food for Special Medical Purposes (FSMP) for the treatment of said rare disease. (Vide:- Notification No.50/2017-Condition No- 112)

1. Inserted Vide: Notification No. 72/2023-Customs (N.T.) Dated 30/09/2023 (w.e.f. 01/10/2023)

2. Substituted Vide: Section 111 of the Finance Act 2024