In the first major concession ahead of the official commencement of the India-UK trade pact from July 15, the Centre has allowed major tax waivers on the import of a specified category of animals from the UK.India has granted exemption from customs duty and Integrated Goods and Services Tax (IGST) on police dogs, sniffer dogs and guide dogs imported from the UK for participation in shows, exhibitions, contests, competitions, demonstrations, entertainment programmes and specified public functions.The allowance has been announced under the Comprehensive Economic and Trade Agreement (CETA) between India and the UK and will be available subject to re-export of the animals and compliance with prescribed customs conditions.The Ministry of Finance has issued the related notification which will take force from July 15. It has been issued under Section 25(1) of the Customs Act, 1962, and exempts specified animals from the whole of the customs duty leviable under the Customs Tariff Act, 1975, as well as the whole of the Integrated GST leviable under Section 3(7) of the Customs Tariff Act, 1975, subject to fulfilment of terms.To avail the exemption, the importer must submit a declaration to the Deputy Commissioner or Assistant Commissioner of Customs at the time of filing the Bill of Entry, stating that the animals are intended for display or use at a specified event.What is exemptAnimals imported for participation in shows, exhibitions, contests, competitions, demonstrations, entertainment, exercise of public functions (such as police dogs, sniffer dogs) or guide dogs into India under the Comprehensive Economic and Trade Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of India.The importer is also required to execute a bond equal to the value of the imported animals and furnish a bank guarantee or cash deposit equivalent to 110 per cent of the customs duty that would otherwise have been payable.However, this requirement will not apply where the import is made by the Central Government, State Government, Union Territory Administration, diplomatic missions in India or notified international organisations.The notification further stipulates that the imported animals cannot be removed from the venue of the event without the permission of the Deputy Commissioner or Assistant Commissioner of Customs. They must remain capable of being identified at the time of re-export, and importers are required to follow the identification procedure prescribed by Customs authorities.The imported animals must also be re-exported within six months from the date of the customs clearance order issued under Section 47 of the Customs Act.In the case of imports by governments, diplomatic missions or notified international organisations, the Commissioner of Customs may extend the re-export period by six months at a time, subject to an overall maximum period of two years from the date of the original clearance order.The notification says that before the expiry of the permitted re-export period, the imported animals may be cleared for home consumption in accordance with applicable laws on payment of the customs duties and applicable interest that would have been payable but for the exemption.“The notification is intended to facilitate the temporary entry of eligible animals from the UK for recognised events under the India-UK Comprehensive Economic and Trade Agreement, while ensuring appropriate customs safeguards through mandatory declarations, identification procedures and re-export conditions,” Finance Ministry sources said.