ECONOMICS

Detailed explanation-1: -Disadvantages of Customs Duty Manufacturers in other industry segments will fight fervently for equal protection from imports as a result of a duty cut in one sector. Customs Duty weakens the economy’s competitiveness, potentially forcing consumers to settle for inferior items.

Detailed explanation-2: -Duty drawback refers to the refund of customs duties and internal taxes paid while importing goods, which in turn are used to manufacture final products exported from India.

Detailed explanation-3: -Protective effect: an import duty raises the price of imported goods. This increase in the price of imports is likely to reduce imports and increase the demand for domestic goods. Import duties may also enable the domestic industries to have higher production costs.

Detailed explanation-4: -As per the notification, import duty on anthracite/PCI, coking coal and ferronickel used as raw material in the steel industry ¬ has been hiked to 2.5%, while for coke and semi-coke it has been raised to 5%, from ‘nil’ earlier.