10-04-2017, 09:20 PM
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As per Section 12 Customs Duty shall be levied at such rates as may be specified under the Customs Tariff Act, 1975 on goods imported into or exported from India
Imports mean bringing into India (including territorial water) from a place outside India
Export means taking out of India to a place outside India
Pilferage (Sec 13)
If any imported goods are pilfered after downloading but before the proper officer has made an order for:
Clearance of home consumption
Deposit in warehouse
the importer shall not be liable to pay the duty on such pilfered goods except for in situation when such goods are restored to the importer after pilferage.
Note: If duty has been paid it shall be refunded provided pilferage has taken place before clearance order
Loss other than Pilferage & Relinquishment Section 23
Loss or destruction - Section 23(1) Where it is shown to the satisfaction of the AC that any imported goods have been lost (otherwise than as result of pilferage), or destroyed at any time before clearance for home consumption, the AC shall remit the duty on such goods
Relinquishment of title - Section 23(2) The owner of any imported goods may at any time before an order for clearance of goods for home consumption or permitting the deposit of goods in warehouse has been made, relinquish his title to the goods and thereupon he shall not be liable to pay the duty thereon.
Articles liable to different rate of duty - Section 19
Duty at Highest Rate
Duty at different Rates
Rates on accessories and spare parts basis Accessories (condition) Rules, 1963
Project Imports
Meaning - A plethora of different machinery, raw material, components, auxiliary equipment, spares, etc when required for setting up or expanding an existing unit shall be called project import.
Difficulty in Assessment
Simplification under heading 98.01 of Schedule to CTA, 1975
Eligible Projects
Industrial Projects
Irrigation Projects
Power Projects
Mining Projects
Project for oil or mineral exploration
Other specified projects
Re-importation Section 20
If some goods which have been exported from India are imported back, such goods shall be liable to duty and be subject to all the conditions to which goods of the like kind and value are liable on the importation there of.
However there are following exemptions:
Re-import for Repairs, etc within 3 years of from export and must be re-exported within 6 months from the date of import.
Re-import by the same person
Refund of Export Duty-Section26
Export Duty, if any, shall be refunded to the person by whom it was paid if
the goods are returned to such person otherwise than by way of re-sale
the goods are re-imported within one year from the date of exportation
an application for refund of such duty is made within 6 months from the date on which the proper officer makes an order for the clearance of goods for home consumption.
Derelict, Jetsam, Flotsam & wreck
All goods, derelict, jetsam, flotsam and wreck brought or coming into India, shall be dealt with as if they were imported into India
Derelict means cargo or vessel abandoned in the sea with no hope of recovery
Jetsam means goods thrown from the vessel to save it from sinking
Flotsam are Jettisoned goods which keep floating
Wreck are on account of storm at sea, the vessel is drifted to Indian water
Abatement on damaged or deteriorated goods- Sec 22
When any imported goods had been damaged or deteriorated at any time before or during the unloading of goods in India
any imported goods other than warehoused goods had been damaged at any time after the unloading of goods but before their examination u/s 17
any warehoused goods had been damaged at any time before clearance for home consumption
Abatement on damaged or deteriorated goods- Sec 22
Damage should not be on account of any accident due to any willful act, negligence or default of the owner, his employee or agent
Duty payable on damaged goods shall be:
Value of goods * Duty Payable before Dam
after damage Value of goods before dam
Determination of value after Damage
The value of damaged goods may be ascertained by either of the following methods at the option of the owner:
the value of such goods may be ascertained by the proper officer
such goods may be sold by the proper officer by public auction / tender or with consent of the owner in any other manner and the gross sales proceed shall be deemed to be the value of such goods
Types of Duty
Basic Custom Duty (Sec 2 of Customs Tariff Act)- The rates at which duties of custom shall be levied under the Customs Act, are specified in I & II Schedules
There are 2 rates in the I Schedule
Standard Rate
Preferential rate
Lower Customs duty under Trade Agreement(Section 5)
Types of Duty
Additional Duty of customs (CVD) Section 3. Duty in addition to BCD
Equal to Excise duty leviable on a like article if produced or manufactured in India
Duty leviable on the class of articles to which imported goods belong and in such case if article is liable to different rates of duty, then the highest of such rates shall be considered.
No duty if no manufacturing process involved
Types of Duty
Rate of Duty for Liquor
Duty on Components
Determination of value
Valuation of Pre-packed articles
Special Additional Duty (section 3A)
Govt has exempted all the goods covered in the I Schedule to Customs Tariff Act, from the whole of the Special Addl duty leviable u/s 3A.
Protective Duties (Section 6)
Reason for imposition
Recommendation of tariff commission to protect domestic industry
By notification of Central Government
Amount of duty
Maximum upto the amount proposed in recommendation
Every such duty shall be deemed to have been specified in First Schedule
Protective Duties
Period of duty Central Government may specify the period up to which protective duty shall be in force, it can reduce or extend such period, it can also reduce or increase the effective rates.
Emergency power to impose or enhance - Power with Central Government
Safeguard duty (Section 8B)
Reason for imposition
Any article is imported into India in increased quantity
such increase import is causing or threatening to cause serious injury to domestic industry
Provisional Duty
Provisional duty may be imposed till completion of inquiry for <=200 days subject to refund if decided against the duty
Safeguard duty
Period of Duty
Valid for 4 Years unless invoked
Period can be extended max up to 10 years from the date of first imposition
No duty in certain cases
Import from developing countries
Imported from only one developing country
Imported from more than one developing company
Import by EOU or unit in SEZ
Import of small quantities