A1. Introduction

A2. Text of Amendment to Section 3 of Customs Tariff Act

B. List of Items under MRP Based CVD

A1. Introduction

As of 1st March, 2001, thus, the maximum retail price (M.R.P.) will serve as the calculation basis for Additional Duty of Customs, popularly known as CVD, for 92 products. This increases the amount to be paid as CVD on those imports. The measure is designed to hit the import of consumer goods.

Excise duty on the same domestic goods (among others) is also levied on the basis of MRP. (On other goods, excise may be levied on the basis of the so-called assessed ex-factory value). Imports are, in this respect, treated in just the same way as Indian products.

An important amendment made in section 3 relates to the valuation (for the purposes of additional duty) of packaged commodities imported into India. In the case of such goods the value would be computed on the basis of their maximum retail price in India.

The provision is applicable to goods:

(a) where it is the requirement either of the Standards of Weights and Measures Act or any other law to declare the retail sale price on the package (before clearance for home consumption); and

(b) like goods manufactured in India are notified under section 4A of the Central Excise Act.

In such cases, the value of the goods would be the maximum retail price (declared on the package) minus the abatement notified for like domestic goods under section 4A.

Both these provisions have been declared under the Provisional Collection of Taxes Act and come into force on the 1st of March, 2001. The text of the amendment is given below.

A2. Text of Amendment to Section 3 of Customs Tariff Act

Scope of MRP based assessment

The extract from Section 3 of the Customs Tariff Act 1975 is given below:

( a) in relation to which it is required, under the provisions of the Standards of Weights and Measures Act, 1976 or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such article; and

( b) where the like article produced or manufactured in India, or in case where such like article is not so produced or manufactured, then, the class or description of articles to which the imported article belongs, is the goods specified by notification in the Official Gazette under sub-section ( 1) of section 4A of the Central Excise Act, 1944, the value of the imported article shall be deemed to be the retail sale price declared on the imported article less such amount of abatement, if any, from such retail sale price as the Central Government may, by notification in the Official Gazette, allow in respect of such like article under sub-section ( 2) of section 4A of the Central Excise Act, 1944.

Explanation. - Where on any imported article more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price for the purposes of this section.".

[Ref: Clause 110(b) of Finance Bill 2001]

B. List of Items under MRP Based CVD

The notification lists 144 items which are subject to MRP based excise duty payment. The notification provides for abatement of retail price by 15 to 55 percent for arriving at value on which excise duty will be calculated.

[Ref: 49-Central Excise (Non-Tariff) dated 24 December 2008]

In exercise of the powers conferred by sub-sections (1) and (2) of section 4A of the Central Excise Act, 1944 (1 of 1944) the Central Government, in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.14/2008-Central Excise (N.T.), dated the 1st March, 2008, published in the Gazette of India Extraordinary, vide number G.S.R. 147(E) of the same date, except as respects things done or omitted to be done before such supersession, hereby specifies the goods mentioned in Column (3) of the Table below and falling under Chapter or heading or sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) mentioned in the corresponding entry in column (2) of the said Table, as the goods to which the provisions of sub-section (2) of said section 4A shall apply, and allows as abatement the percentage of retail sale price mentioned in the corresponding entry in column (4) of the said Table.

Table

SNo

Chapter, heading, subheading or tariff item of the First Schedule

Description of goods

Abatement as a percentage of retail sale price

(1)

(2)

(3)

(4)

1.

17 or 21

Preparations of other sugars

35

2.

1702

Sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel

35

3.

1704

Gums, whether or not sugar coated (including chewing gum, bubblegum and the like)

35

4.

1704 90

All goods, other than white chocolate

30

5.

1704 90

White chocolate

35

6.

1805 00 00 or 1806 10 00

Cocoa powder, whether or not containing added sugar or other sweetening matter

30

7.

1806

Chocolates in any form, whether or not containing nuts, fruit kernels or fruits, including drinking chocolates

30

8.

1806

Other food preparations containing cocoa

30

9.

1901 20 00 or 1901 90

All goods, other than Dough for preparation of bakers’ ware of heading No.1905

30

10.

1904

All goods, other than goods falling under tariff item 1904 20 00

30

11.

1904 20 00

All goods

30

12.

1905 31 00 or 1905 90 20

Biscuits

30

13.

1905 32 11 or 1905 32 90

Waffles and wafers, coated with chocolate or containing chocolate

30

14.

1905 32 90

All goods, other than wafer biscuits

35

15.

1905 32 19 or 1905 32 90

Wafer biscuits

30

16.

2101 11 or 2101 12 00

Extracts, essences and concentrates, of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee

30

17.

2102

All goods

30

18

2106 90 11

Sharbat

25

19

2106 90 20

All goods, other than pan masala containing not more than 15% betel nut

40

20.

2106 90 20

Pan masala containing not more than 15% betel nut

20

21.

2403

Pan masala containing tobacco

55

22.

2106 90 30

All goods

30

23.

2106 10 00, 2106 90 50, 2106 90 70, 2106 90 80, 2106 90 91 or 2106 90 99

All goods

35

24.

2201 or 2202

Mineral waters

45

25.

2201 or 2202

Aerated waters

40

26.

2209

Vinegar and substitutes for vinegar obtained from acetic acid

35

27.

2403 99 10, 2403 99 20 or2403 99 30

All goods

55

28.

2523 21 00 or 2523 29

White cement, whether or not artificially coloured and whether or not with rapid hardening properties

30

29.

2710

Lubricating oils and Lubricating preparations

35

30.

30

Medicaments, other than those which are exclusively used in Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic systems

Explanation.- For the purposes of this entry, “retail sale price” means the retail price displayed by the manufacturer under the provisions of the Drugs (Prices Control) Order, 1995.

35

31.

3204 20

Synthetic organic products of a kind used as fluorescent brightening agents or as a luminophores

30

32.

3206

All goods other than pigments and inorganic products of a kind used as luminophores

30

33.

3208, 3209 or 3210

All goods

30

34.

3212 90 20

Dyes and other colouring matter put up in forms or small packing of a kind used for domestic or laboratory purposes

35

35.

3213

All goods

35

36.

3214

All goods

35

37.

3303, 3304, 3305 or 3307

All goods

35

38.

3306 10 20

Toothpaste

30

39.

3401 19 or 3401 20 00

Soap (other than paper, wadding, felt and non- wovens, impregnated, coated or covered with soap or detergent)

30

40.

3401 11, 3401 19 or 3402

Organic surface active products and preparations for use as soap in the form of bars, cakes, moulding pieces or shapes, other than goods falling under 3402 90 20

30

41.

3403

Lubricating preparations (including cutting-oil preparations, bolt or nut release preparations, anti-rust or anti-corrosion preparation and mould release preparations based on lubricants)

30

42.

3405

All goods

30

43.

3506

Prepared glues and other prepared adhesives, not elsewhere specified or included

35

44.

3702

All goods other than for X-ray and unexposed cinematographic films

35

45.

3808

Insecticides, fungicides, herbicides, weedicides and pesticides

30

46.

3808

Disinfectants and similar products

35

47.

3808 93 40

Plant growth regulator

25

48.

3814 00 10

Thinners

35

49.

3819

All goods

35

50.

3820 00 00

Anti-freezing preparations and prepared de-icing fluids

35

51.

3824 90 24 or 3824 90 90

Stencil correctors and other correcting fluids, ink removers put up in packings for retail sale

35

52.

3919

Self adhesive tapes of plastics

35

53.

3923 or 3924

Insulated ware

40

54.

4816

Carbon paper, self-copy paper, duplicator stencils, of paper

35

55.

4818

Cleansing or facial tissues, handkerchiefs and towels, of paper pulp, paper, cellulose wadding or webs of cellulose fibres, other than goods falling under 4818 50 00

35

56.

64

The following goods namely: -

 

 

 

(i) Footwear of retail sale price exceeding Rs 250/- and not exceeding Rs 750/- per pair

35

 

 

(ii) All other foot wear

40

57.

6506 10

Safety headgear

35

58.

6907

Vitrified tiles, whether polished or not

45 40

59.

6908

Glazed tiles

45 40

60.

7321

Cooking appliances and plate warmers, other than LPG gas stoves (with burners only, without other functions such as, grills or oven)

35

61.

7321

LPG gas stoves (with burners only, without other functions such as, grills or oven)

35 30

62.

7323 or 7615 19 10

Pressure Cookers

25

63.

7324

Sanitary ware of iron or steel

35

64.

7418 20 10

Sanitary ware of copper

35

65.

8212

Razors and razor blades (including razor- blade blanks in strips)

35

66.

8305 20 00 or 8305 90 20

Staples in strips, paper clips, of base metal

35

67.

8414 51 or 8414 59

Electric fans

35

68.

8415

Window room air-conditioners and split air conditioners of capacity upto 3 tonnes

25

69.

8418

Refrigerators

35

70.

8421 21

Water filters and water purifiers, of a kind used for domestic purposes

30

71.

8422 11 00 or 8422 19 00

Dish washing machines

30

72.

8443

Facsimile machines

35

73.

8443 31 00 or 8443 32

Printer whether or not combined with the functions of copying or facsimile transmission

20

74.

8443 99 51

Ink cartridges, with print head assembly

20

75.

8450

Household or laundry-type washing machines, including machines which both wash and dry

35

76.

8469

Typewriters

30

77.

8470

Calculating machines and pocket-size data recording, reproducing and displaying machines with calculating functions, other than goods falling under sub-heading 8470 50 and 8470 90

35

78.

8471 30

All goods

20

79.

8471 60

All goods

20

80.

8472 90 10

Stapling machines

35

81.

8506

All goods, other than parts falling under tariff item 8506 90 00

35

82.

8508

All goods, other than parts falling under tariff item 8508 70 00

35

83.

8509

All goods, other than parts falling under tariff item 8509 90 00

35

84.

8510

All goods, other than parts falling under tariff item 8510 90 00

35

85.

8513

All goods, other than parts falling under tariff item 8513 90 00

30

86.

8516

Electric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electro-thermic hairdressing apparatus (for example, hair dryers, hair curlers, curling tong heaters) and hand dryers; electric smoothing irons; other electro-thermic appliances of a kind used for domestic purposes.

35

87.

8517

Telephone sets including telephones with cordless handsets; video phones;

35

88.

8517 62 30

Modems (modulators – demodulators)

20

89.

8517 69 60

Set top boxes for gaining access to internet

20

90.

8519

All goods, other than MP3 Player or MPEG 4 Player

35

91.

8521

All goods, other than MP3 Player or MPEG 4 Player

35

92.

85

MP3 Player or MPEG 4 Player

35 30

93.

8523

Unrecorded audio cassettes; recorded or unrecorded video cassettes; recorded or unrecorded magnetic discs

35

93A

8523 80 20

Packaged software or canned software

[SNo. 93A inserted by 30-CE(NT)/21.12.2010 amended by Corrigendum dated 06.01.2011.

15

94.

8527

Pagers

30

95.

8527

Radio sets including transistors sets, having the facility of receiving radio signals and converting the same into audio output with no other additional facility like sound recording or reproducing or clock in the same housing or attached to it

30

96.

8527

Reception apparatus for radio-broadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock (other than goods covered at S.No.95)

35

97.

8528

Television receivers (including video monitors and video projectors) whether or not incorporating radio broadcast receivers or sound or video recording or reproducing apparatus

30

98.

8528

Monitors of a kind solely or principally used in an automatically data processing machine

20

99.

8528 71 00

Set top boxes for television sets

20

100.

8536

All goods, other than goods falling under tariff item 8536 70 00

35

101.

8539

The following goods, other than lamps for automobiles, namely:-

 

 

 

(i) Compact Fluorescent Lamp (CFL) falling under tariff item 8539 31 10

35

 

 

(ii) All other goods

35

102.

9006

Photographic (other than cinematographic) cameras

30

103.

9101 or 9102

All goods, other than braille watches

30

104.

9103 or 9105

Clocks

40

105.

9603 21 00

Toothbrush

30 25

106.

9612

All goods

30

107.

9617

Vacuum flasks

35

108.

Any heading

Parts, components and assemblies of vehicles (including chassis fitted with engines) falling under Chapter 87 excluding vehicles falling under headings 8712, 8713, 8715 and 8716

30

109.

Any Chapter

Parts, components and assemblies of goods falling under tariff item 8426 41 00, headings 8427, 8429 and sub-heading 8430 10

30

109A

151710

Margarine edible grade

35

110

16

All goods

35

111

1901 10

All goods put up in unit containers

35

112

1902 other than 1902 40 10 and 1902 40 90

All goods

35

113

20

All goods

35

114

2101

Coffee or tea pre-mixes

35

115

2103

Sauces, ketchup and the like and preparations thereof

35

116

2104

Soups and broths and preparations thereof

35

117

2105 00 00

All goods

35

118

2106 90

All kinds of food mixes, including instant food mixes

35

119

2106 90 30

Betelnut product known as “supari

35

120

2106 90 99

(i) Ready to eat packaged food,

(ii) Milk containing edible nuts with sugar or other ingredients

35

121

2202 90 10

All goods

35

122

2202 90 20

All goods

35

123

2202 90 30

Flavoured Milk of Animal origin

35

124

2202 90 90

Tender coconut water

35

125

30

Medicaments (including those used in Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic systems), manufactured exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 (23 of 1940) or Homeopathic Pharmacopoeia of India or the United States of America or the United Kingdom or the German Homeopathic Pharmacopoeia, as the case may be, and sold under the name as specified in such books or pharmacopoeia

35

126

30

Intravenous fluids used for sugar, electrolyte or fluid replenishment

35

127

3002 20 or 3002 30 00

Vaccines (other than those specified under the National Immunisation Program)

35

128

3215 90 10

Fountain pen ink

35

129

3215 90 20

Ball pen ink

35

130

3215 90 40

Drawing ink

35

131

3306 10 10

Tooth Powder

35

132

3406 00 10

Candles

35

133

39 or 40

Nipples for feeding bottles

35

134

4015

Surgical rubber gloves or medical examination rubber gloves

35

135

4818 40 10

All goods

35

136

4818 40 90

All goods

35

137

5601 10 00

All goods

35

138

7310 or 7326 or any other Chapter

Mathematical boxes, geometry boxes and colour boxes, pencil sharpeners

35

139

8215

All goods

35

140

8421 21 20

Water filters functioning without electricity and replaceable kits thereof

35

141

8517 or 8525 60

Mobile handsets including Cellular Phones and Radio trunking terminals

35

142

8517

Wireless data modem cards with PCMCIA or USB or PCI express ports

35

143

8523

Recorded audio compact discs (CDs); Recorded video compact discs (VCDs); Recorded digital video discs (DVDs) & Recorded audio cassettes

35

144

9619

All goods

35

SNos. 58, 59, 61, 92 and 105 amended by 18-CE(NT)/07.07.2009; 09-CE(NT)/27.02.2010; SNo. 109 inserted by 19-CE(NT)/29.04.2010; SNo. 109 to 143 inserted by 11-CE(NT)/24.03.2011; SNo. 109 substituted by corrigendum dated 29.03.2011; SNos. 135 to 137 omitted and 144 inserted by 30-CE(NT)/30.12.2011]

Explanation.- For the purposes of this notification, except for S.No.30, “retail sale price” means the maximum price at which the excisable goods in packaged form may be sold to the ultimate consumer and includes all taxes, local or otherwise, freight, transport charges, commission payable to dealers and all charges towards advertisement, delivery, packing, forwarding and the like, as the case may be, and the price is the sole consideration for such sale.

[F.No.334/8/2008-TRU]