India: Customs duty reduced by 1.5% on coal imports

In the Union budget announced today, Indian government has cut BCD on coal imports from 2.5% to 1%. However, it has also introduced AIDC (Agriculture Infrastructure Development Cess) of 1.5% on imported coal (to be charged on CIF value of imports), having negligible impact on the imported cost of coal. AIDC is not applicable on coal imports from Indonesia under a free trade agreement.