Major proposals in the Finance Bill 2009 about customs duties are the following:

A. HEALTH CARE
1) Customs duty on 10 specified life saving drugs/vaccine and their bulk drugs has been reduced from 10% to 5% with Nil CVD (by way of excise duty exemption).
2) Customs duty on specified heart devices, namely artificial heart and PDA/ASD occlusion device, has been reduced from 7.5% to 5% with Nil CVD (by way of excise duty exemption).

B. ELECTRONICS HARDWARE
1) Customs duty on LCD Panels for manufacture of LCD televisions has been reduced from 10% to 5%.
2) Customs duty exemption on Set Top Box for television broadcasting has been withdrawn and 5% customs duty imposed.
3) Full exemption from 4% special CVD on parts for manufacture of mobile phones and accessories has been reintroduced for one year, upto 06.07.2010.

C. RENEWABLE ENERGY SECTOR
1) Customs duty on permanent magnets for PM synchronous generator above 500 KW used in wind operated electricity generators has been reduced from 7.5% to 5%.
2) Customs duty on bio-diesel has been reduced from 7.5% to 2.5%.

D. CAPITAL GOODS
1) Concessional customs duty of 5% on specified machinery for tea, coffee and rubber plantations has been reintroduced for one year, upto 06.07.2010.
2) Customs duty on ‘mechanical harvester’ for coffee plantation has been reduced from 7.5% to 5%. CVD on such harvesters has also been reduced from 8% to nil, by way of excise duty exemption.

E. EXPORT SECTOR
1) At present, specified raw materials/inputs imported by manufacturer-exporters of sports goods are fully exempt from customs duty, subject to specified conditions. The list of such items has been expanded by including five additional items.
2) Similarly, specified raw materials and equipment imported by manufacturer-exporters of leather goods, textile products and footwear industry are fully exempt from customs duty, subject to specified conditions. The list of such items has been expanded by including additional items.
3) Customs duty on unworked corals has been reduced from 5% to Nil.

F. PRECIOUS METALS
1) Customs duty on serially numbered gold bars (other than tola bars) and gold coins has been increased from Rs.100 per 10 gram to Rs.200 per 10 gram.
2) Customs duty on other forms of gold has been increased from Rs.250 per 10 gram to Rs.500 per 10 gram.
3) Customs duty on silver has been increased from Rs.500 per Kg. to Rs.1000 per Kg.
The above increase in rates is also applicable when gold and silver (including ornaments) are imported as personal baggage.

G. TEXTILES
1) Customs duty on cotton waste has been reduced from 15% to 10%.
2) Customs duty on wool waste has been reduced from 15% to 10%.

H. MISCELLANEOUS
1) Customs duty on rock phosphate has been reduced from 5% to 2%.
2) CVD exemption on Aerial Passenger Ropeway Projects has been withdrawn. Such projects will now attract applicable CVD.
3) Customs duty exemption on concrete batching plants of capacity 50 cum per hour or more has been withdrawn. Such plants will now attract customs duty of 7.5%.
4) On packaged or canned software, CVD exemption has been provided on the portion of the value which represents the consideration for transfer of the right to use such software, subject to specified conditions.
5) Customs duty on inflatable rafts, snow-skis, water skis, surf-boats, sail-boards and other water sports equipment has been fully exempted.