Rescission of Customs Duty Exemption on Imported Art for Exhibition, Effective September 07, 2024
📅 By Admin | September 07, 2024
📂 Categories: #NotificationAndCircular #Customs
⏳ 4 Min Read
CBIC Rescinds Art Exhibition Exemption
On September 6, 2024, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 42/2024-Customs. This notification rescinds the earlier Notification No. 26/2011-Customs. Previously, the 2011 notification had exempted imported works of art intended for public museum or national institution exhibitions from customs duty and integrated tax. This exemption provided financial relief to cultural institutions and encouraged international exhibitions.
Changes Effective September 7, 2024
Starting September 7, 2024, the exemption will no longer apply. The CBIC made this change under Section 25 of the Customs Act, 1962. Therefore, this policy shift aligns with broader fiscal objectives and indicates a change in how art is imported for exhibitions.
Impact on Museums and Institutions
Higher Import Costs: As a result, public museums and national institutions will now face higher import costs for artworks. Consequently, this change may limit the scope and frequency of international exhibitions in India, potentially restricting access to foreign art and cultural works.
Tariff Exemptions Remain: Nevertheless, goods covered under the Customs Tariff Act, 1975, will still enjoy exemptions from customs duty and integrated tax if they meet specific conditions. Thus, some art and cultural items may still qualify for tariff relief, but under stricter conditions and more scrutiny.
Public Interest Justification: The CBIC’s decision likely reflects a need for increased revenue or shifts in customs policy concerning non-essential imports. Thus, art institutions may need to adjust their strategies for hosting international exhibitions. They might negotiate costs or seek alternative tax relief options.
Conclusion
In summary, this rescission represents a significant policy change for cultural institutions involved in art importation. As a result, its impact will likely be felt across the museum and exhibition sectors in India. Institutions will need to adapt to these new financial realities.
#CBIC #CustomsDuty #ArtExhibition #TaxExemption #CustomsAct #PublicInterest
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