Financial Daily from THE HINDU group of publications
Tuesday, Aug 17, 2004
Industry & Economy
Excise and Customs
Bill for 8-digit classification code for excise introduced
New Delhi , Aug. 16
A COMMON eight-digit classification code for levy and collection of excise and customs duties, administering import trade control policy and collection of statistics may soon become a reality.
The Union Finance Minister, Mr P. Chidambaram, introduced a Bill in the Lok Sabha on Monday that seeks to achieve this objective through the expansion of the tariff classification of excisable goods to an eight-digit classification code from the existing six-digit code.
The Central Excise Tariff (Amendment) Bill 2004, if enacted, would allow the Revenue Department to adopt Harmonised System of Nomenclature (HSN)-based eight-digit classification code for excise purposes. It has already adopted eight-digit classification for levy of import duty with effect from February 1, 2003.
The Directorate General of Foreign Trade (DGFT) and the Directorate General of Commercial Intelligence and Statistics (DGCIS) have already adopted eight-digit classification code for the purpose of import trade control policy and collection of statistics.
Further, the proposed eight-digit classification code for excise would accommodate the demand from trade and industry for the adoption of a common commodity classification (based on internationally adopted HSN) to be used for all trade related transactions to facilitate international and domestic trade.
It would also remove the difficulties arising due to divergence in classification by different departments and agencies and would facilitate international trade. It would also facilitate collection and compilation of specific data on commodities of special significance to India and sharing such data among various agencies.
The expansion of the tariff classification would provide flexibility in the international trade negotiations along with facilitating collection of
specific statistics. A common eight-digit commodity classification code would also facilitate effective computerisation of tax administration and electronic data processing.
The Bill also proposes to incorporate standard units of measurement as recommended by the World Customs Organisation. The use of standard units of measurement would facilitate the tax administration in compilation and analysis of trade statistics.
The Bill would not have any revenue implications as no changes are being made in the existing rates of central excise duties.
More Stories on : Excise and Customs
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line