MM TAX CLUB

The CBIC issued Instruction No. 05/2024-Customs dated March 14, 2024 regarding the prohibition for import of ferocious breeds of dog.

Reference is invited to OM F.No. L-11010(1)/251/2021-Trade (E-20671) dated March 12, 2024 received from DC (Trade), Deptt. of Animal Husbandry and Dairying (DAHD) enclosing therein D.O. letter No. D.O. V-11/1/2024-Anlm-Dadf dated March 12, 2024 of the Joint Secretary, Deptt. of Animal Husbandry and Dairying, Ministry of Fisheries, Animal Husbandry and Dairying on the subject matter. (copies enclosed).

It has been informed that following breeds of dogs have been identified as ferocious which are dangerous for human life and shall be prohibited for import, breeding, selling as pet dogs and other purposes :

“breeds (including mixed and cross breeds) like Pitbull Terrier, Tosa Inu,, American Staffordshire Terrier, Fila Brasileiro. Dogo Argentino, American Bulldog, Boerboel, Kangal, Central Asian Shepherd Dog (ovcharka), Caucasian Shepherd Dog (ovcharka), South Russian Shepherd Dog (ovcharka), Tornjak, Sarplaninac, Japanese Tosa and Akita, Mastiffs (boerbulls), Rottweiler, Terriers, Rhodesian Ridgeback, Wolf dogs, Canario, Akbash dog, Moscow Guard dog, Cane corso and every dog of the type commonly known as a Ban Dog (or Bandog)”

It is requested that necessary action may be taken to sensitize officers under your jurisdiction with respect to ban on import of above breeds of dogs.

Notification No. 19/2024-Customs dated 15th March, 2024

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 785(E), dated the 30th June, 2017, namely:-

In the said notification,

(1) in the Table, for S. No. 526A and the entries relating thereto, the following S. No. and entries shall be substituted, namely: -

(2) in the Annexure, after condition number 116 and the entry relating thereto, the following condition number and entry shall be inserted, namely: -

F. No. PD-13004/01/2019-COFEPOSA] dated 15th March, 2024

In exercise of the powers conferred by clause (a) of Section 8 of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974) and in supersession of the Notifications of the Government of India, in the Ministry of Finance (Department of Revenue) G.S.R. No. 136 (E) dated 27th February, 2023 except as respects things done or omitted to be done before such supersession, the Central Government hereby reconstitutes an Advisory Board for a period of one year, consisting of :-

(i) Hon’ble Mr. Justice Vibhu Bakhru - Chairperson

(ii) Hon’ble Mr. Justice Manoj Kumar Ohri - Member

(iii) Hon’ble Mr. Justice Dharmesh Sharma - Member

2. This notification shall come into force with effect from 23rd March, 2024

Minimum Investment Rs 4150 Cr required with no cap on maximum Investment

3 years timeline for setting up manufacturing facilities in India, and start commercial production of EVs; 50% domestic value addition to be reached within 5 years at the maximum

Companies setting up manufacturing facilities for EVs to be allowed limited imports of cars at lower custom duty

The Union Government has approved a scheme to promote India as a manufacturing destination so that e-vehicles (EV) with the latest technology can be manufactured in the country. The policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers.

This will provide Indian consumers with access to latest technology, boost the Make in India initiative, strengthen the EV ecosystem by promoting healthy competition among EV players leading to high volume of production, economies of scale, lower cost of production, reduce imports of crude Oil, lower trade deficit, reduce air pollution, particularly in cities, and will have a positive impact on health and environment.

The policy entails the following: -

Minimum Investment required: Rs 4150 Cr (∼USD 500 Mn)

No limit on maximum Investment

Timeline for manufacturing: 3 years for setting up manufacturing facilities in India, and to start commercial production of e- vehicles, and reach 50% domestic value addition (DVA) within 5 years at the maximum.

Domestic value addition (DVA) during manufacturing: A localization level of 25% by the 3rd year and 50% by the 5th year will have to be achieved

The customs duty of 15% (as applicable to CKD units) would be applicable on vehicle of minimum CIF value of USD 35,000 and above for a total period of 5 years subject to the manufacturer setting up manufacturing facilities in India within a 3-year period.

The duty foregone on the total number of EV allowed for import would be limited to the investment made or ₹6484 Cr (equal to incentive under PLI scheme) whichever is lower. A maximum of 40,000 EVs at the rate of not more than 8,000 per year would be permissible if the investment is of USD 800 Mn or more. The carryover of unutilized annual import limits would be permitted.

The Investment commitment made by the company will have to be backed up by a bank guarantee in lieu of the custom duty forgone

The Bank guarantee will be invoked in case of non-achievement of DVA and minimum investment criteria defined under the scheme guidelines