Shipyards Association Welcomes Customs Duty Raise On Ship Imports

Mumbai, Nov 13 (KNN) The central government has increased the Basic Customs Duty (BCD) on fishing vessels, tugs, pusher crafts and light vessels from 5 per cent to 50 per cent for 10 years and subsequently to 100 per cent for 15 years.

This decision has been highly appreciated by a lobby group of local shipbuilders, reported ET. 

“The Shipyards Association of India has been strongly advocating an increase in BCD on these vessels to foster shipbuilding industry in India,” said Sahay Raj, President, Shipyards Association of India (SAI). 

“This is a very welcome move and reflects the government's commitment to promote shipbuilding in India by incentivization which will prove a booster for all shipyards. As India sets out to become one of the top five shipbuilding nations within a decade, it would be prudent that BCD increase on vessels be announced at the earliest,” Sahay Raj said.

The issue was discussed at the Global Maritime India Summit held in October in which all stake holders, including officials from the Ministry of Ports, Shipping, and Waterways, think tanks, foreign experts and member shipyards of the SAI participated.

“The Ministry's move to increase BCD on vessels will not only promote shipbuilding in India but also encourage Indian shipyards to venture out and compete in the global markets to bag more and more shipbuilding contracts,” said Arjun Chowgule, Vice President, SAI.

“The proposed increase in BCD will help rebalance the Indian economy in a sustainable manner through the development of its manufacturing sector. It is going to be a game changer to achieve the ambitious shipbuilding targets envisaged by Prime Minister Narendra Modi in the Maritime Amrit Kaal Vision 2047,” Chowgule added.

(KNN Bureau)