Government announces incentives for Domestic Shipbuilding Industry

The Central Government on 24-11-2015 issued Notification Nos. 44/2015-Central Excise, 45/2015-Central Excise, 54/2015-Customs and 55/2015-Customs to provide the following indirect tax incentives to the Domestic Shipbuilding Industry:

  • Exemption from customs and central excise duties on all raw material and parts for use in the manufacture of ships/vessels/tugs and pusher crafts etc.
  • Export Oriented Units (EOUs) will be eligible for duty exemption on raw materials/parts consumed in manufacture of such ships/vessels etc which are cleared to domestic tariff area (DTA), even if such ships/vessels are exempt from basic customs duty and Central Excise/CV duty.
  • Nullify the requirement of manufacturing of ships/vessels/ tugs and pusher craft etc in a custom bounded warehouse under the provisions of Section 65 of the Customs Act, 1962, for availing the customs and excise duty exemptions. Exemptions should be subjected to actual user conditions only.

-Ministry of Finance

Join the discussion

Your email address will not be published. Required fields are marked *

3 × 1 =