ACMA for excise duty cut

The association has asked for removal of duty differential between CKD/SKD kits, engine and engine parts. It has suggested a uniform duty of 40 per cent should be evolved for CKD/SKD kits and all auto components. It has proposed that the customs duty on the major raw material should be brought down to 15 to 20 per cent, while customs duty on the engine and engine parts should be raised to 40 per cent from 25 per cent.

ACMA has suggested that assessment of imports as CKD/SKD kits should be on the basis of the local content is less than 70 per cent, and assessment of imports as components8217; if local content is greater than 70 per cent atcomponent rate of duty.

The customs duty on raw materials like steel should be brought down to 15 per cent, synthetic rubber to 20 per cent, powder metal parts to 15 per cent, glass lens 20 per cent, it has suggested.