Chinmay Tutorials [9929277130]Custom Duty Amendments
CS Factory….
Levy of IGST on Import of goods [Section 3(7]:
Any article which is imported into India shall in additional, be liable to integrated tax at such rate, not exceeding 40% as is leviable under Section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined u/s 3(8).
Valuation for levying IGST [Section 3(8)]:
For the purposes of calculating the integrated tax under Section 3(7) on any imported article where such tax is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in Section 14 of the Customs Act, 1962m be the aggregate of-
a)the value of the imported article determined under Section 14(1) of the Customs Act, 1962 or the tariff value of such article fixed under Section 14(2), as the case may be; and
b)any duty of customs chargeable on that article under section 12 of the Customs Act, 1962, and any sum chargeable on that article under any law for the time being inforce as an addition to, and in the same manner as, a duty of customs, but does not include the tax referred to in Section 3(7) or the cess referred to in Section 3(9).
Levy of GST Compensation in addition to IGST on Import of Goods [Section 3(9)]:
Any article which is imported into India shall in addition be liable to the goods and services tax
compensation cess at such rate, as is leviable under Section 8 of the Goods and Services Tax
(Compensation to state) Cess Act, 2017 on a like article on its supply in India, on the value of
the imported article as determined under Section 3(10).
Valuation for levying GST Compensation Cess [Section 3(10)]:
For the purposes of calculating the goods and services tax compensation cess under Section 3(9) on any importedarticle where such cess is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in Section 14 of the Customs Act, 1962, be theaggregate of –
i)the value of the imported article determined under section 14(1)of the Customs Act, 1962, or the tariff value of such article fixed under Section 14(2) as the case may be and
ii) any duty of customs chargeable on that articles under section 12 of the Customs Act, 1962 and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include the tax referred to in Section 3(7) or the cess referred to in Section 3(9).
Calculation of Total custom duty payable:
Assessable value (A.V) A / √(+) BCD [……….. % of A] B / +
AV for computing ACD u/s 3(1) of CTA 1975 C / √
(+) ACD u/s of CTA, 1975 [……….% of C] D / +
(+) Education cess [2% of B +D] E / +
(+) SHEC [1% of B+C] F / +
A.V for computing ACD u/s 3(5) of CTA , 1975 G / √
(+) ACD u/s 3(5) of CTA, 1975) H / +
AV for computing ACD u/s 3(7), 3(9) I / √
(+) ACD U/s 3(7) IGST (…………% of I) J / +
(+) ACD u/s 3(9) (compensation cess) […………….% of I) K / +
Total cost of imported goods L / √
Total C.D payable
(L) – (A)
OR
(B) +(D) + (E) +(F)+ (H) +(J) +(K)
Passenger and crew arrival manifest and passenger name record information [Section 30A] [Inserted by Finance Act, 2017 w.e.f. 31-03-2017]
1)Person- in-charge to file arrival manifest to passenger and crew: The person-in charge of a conveyance that enters India from any place outside India or any other person as may be specified by the Central Government by notification in the Official Gazette, shall deliver to the proper officer-
i)The passenger and crew arrival manifest before arrival in the case of an aircraft or a vessel and upon arrival in the case of a vehicle and
ii)the passenger name record information of arriving passengers, in such form, containing such particulars, in such manner and within such time, as may be prescribed.
2)Penalty for non filing of manifest within time limit- Not exceeding Rs. 50,000: Where the passenger and crew arrival manifest or the passenger name record information or any part thereof is not delivered to the proper officer within the prescribed time and if the proper officer is satisfied that there was no sufficient cause for such delay, the person-in-charge or the other person referred to in Section 30A(1) shall be liable to such penalty, not exceeding Rs. 50,000, as may be prescribed.
Time limit of presentation of Bill of Entry
[Amendment by Finance Act, 2017 w.e.f. 31-03-2017]:
The importer shall present the bill of entry
before the end of the next day following theday (excluding holidays) on which the aircraft or vessel or vehicle carrying the goods arrives at a customs station at which such goods are to be cleared for home consumption or warehousing.However, a bill of entry may be presented within 30 days of the expected arrival of the aircraft or vessel or vehicle by which the goods have been shipped for importation into India.
Where the bill of entry is not presented within the time so specified and the proper officer is satisfied that there was no sufficient cause for such delay, the importer shall pay such charges for late presentation of the bill of entry as may be prescribed.
The Bill of Entry (Electronic Integrated Declaration) Regulations, 2011 have been made
effective from 25-11-2011.
Importer, for the purpose of clearing imported goods, can present following types of bill of entry
electronically-
a)Bill of entry for home consumption for clearance of goods for home consumption
b)Billof entry for warehousing for deposit of goods in public warehouse. It is also known as Into Bond bill of entry.
c)Bill o Entry from Warehouse to Home Consumption [Ex Bond bill of entry]
Regualtion 3
The authorised person may authenticate
the electronic integrated declaration and
the supporting documents
by affixing his digital signature and
enter them in the Indian Customs Electronic Data Interchange System
by himself through ICEGATE or by way of data entry through the service centre by furnishing the particulars in the electronic form provided at the website
Explanation.- For the purposes of this regulation, the words “digital signature” shall have the meaning assigned to it in the Information Technology Act, 2000 (21 of 2000);
Regulation 4.
The bill of entry shall be deemed to have been filed and
self-assessment of duty completed when, after entry of the electronic integrated declaration in the Indian Customs Electronic Data Interchange System either through ICEGATE or by way of data entry through the service centre,
a bill of entry number is generated by the Indian Customs Electronic Data Interchange System for the said declaration.
The self-assessed copy of the Bill of Entry may be electronically transmitted to the authorised person or printed out at the service centre.
As per Regulation 4(3) of the said regulations, where the bill of entry is not filed within the above time limit and the proper officer of Customs is satisfied that there was no sufficient cause for such delay, the importer shall be liable to pay charges for late presentation of the bill of entry @ Rs. 5,000 per day for the initial 3 days of default and and @ Rs. 10,000 per day for each day of default thereafter.
Regulation 5
After the completion of assessment,
the authorised person shall present his credentials
for the purpose of identification and
convey the number and date of the bill of entry
to the proper officer of customs
for making an order permitting clearance,
after examination of the imported goods if so required.
Regulation 6
The order under regulation 5 may be conveyed
electronically
to the authorised person, the Custodian, and to any other person(s) designated by the authorised person.
Regulation 7
The authorised person shall retain,
for a period of 5 years
from the date of acceptance of the bill of entry, the self-assessed copy of the bill of entry and
all supporting documents in original, which were used or relied upon by him in submitting the electronic integrated declaration, and shall produce them before Customs or other Government agencies in connection with any action or proceedings under the Customs Act 1962 or any other law for the time being in force.
Q1.XYZ Ltd. imported goods through vessel which arrived at customs port on 1-05-2017. The company presented bill of entry for home consumption in Indian customs Electronic data interchange Gateway on 06-05-2017. Determine charges if any for late presentation of bill of entry by XYZ Ltd.
Ans:
As per Regulation 4(1) of Bill of entry (electronic integrated declaration) regulation, 2011, the importer shall file the bill of entry before the end of the next day following the day (excluding holidays) on which the aircraft or vessel or vehicle carrying the goods arrives at a customs station at which such goods are to be cleared for home consumption or warehousing.
As per Regulation 4(3) of the said regulations, where the bill of entry is not filed within the above time limit and the proper officer of Customs is satisfied that there was no sufficient cause for such delay, the importer shall be liable to pay charges for late presentation of the bill of entry @ Rs. 5,000 per day for the initial 3 days of default and @ Rs. 10,000 per day for the initial 3 days of default and @ Rs. 10,000 per day for each day of default thereafter.
Time limit for payment of duty [Amendment by Finance Act, 2017 w.e.f. 31.3.2017]:
The importer shall pay the import duty-
a)on the date of presentation of the bill of entry in the case of self assessment; or
b)within 1 day (excluding holidays) from the date on which the bill of entry is returned to him by the proper officer for payment of duty in the case of assessment , reassessment or provisional assessment; or
c) in the case of deferred payment under the proviso to Section 47(1), from such due date as may be specified by rules made in this behalf.
Interest @ 15% on delayed payment of duty:
If the importer fails to pay the duty within the time specified above, he shall pay interest on the duty not paid or short-paid till the date of its payment , at such rate, not less than ten percent. But not exceeding 36% Per annum, as may be fixed by the Central Government by notification in the official Gazette [atpresent interest rate is @ 15% p.a.]
Deferred Payment of Import Duty Rules, 2016 [Notification No. 143/2016-Cus (N.T.) dated
02-11-2016 w.e.f. 16-11-2017]:
Particulars / ProvisionsShort title and commencement / (1) These rules may be called the Deferred Payment of Import duty Rules, 2016.
(2) They shall come into force on the 16th day of November, 2016.
Definitions / (1)In these rules, unless the context otherwise requires-
(a) “Act” means the Customs Act, 1962;
(b)“due date” means the date specified in rule 5 of these rules;
(c) “eligible importer” means any class of importers notified under proviso to section 47(1) of the Act, i.e. [Importers certified under Authorized Economic Operator programme as AEO (Tier-Two) and (Tier- Three).
(2) words and expressions used and not defined herein but defined in the Act, shall have the meanings respectively assigned to them in the Act.
Application / These rules shall apply to eligible importer who have been notified under the proviso to section 47(1) of the Act.
Information about intent to avail benefit of notification / (1) An eligible importer who intends to avail the benefit under section 47(1) of the Act shall intimate to the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be having jurisdiction over the port of clearance, his intention to avail the said benefit.
(2) The principal Commissioner of customs or the Commissioner of Customs, as the case may be shall upon being satisfied with the eligibility of the importer to pay the duty under these rules, allow the eligible importer to pay the duty by due dates specified in Rule 5.
Payment of duty / The eligible importer shall pay the duty by the dates specified hereunder inclusive of the period (excluding holidays) as mentioned in Section 47(2) of the Act, namely-
For goods corresponding to bill of Entry returned for payment / Date for payment of duty
-From 1st day to 15th day of any month / 16th day of that month
-From 16th day till the last day of any month other than march / 1st day of the following month
-From 16th day till the 31st day of March / 31st March
Manner of payment / The eligible importer shall pay the duty electronically
The assistant commissioner or the Deputy Commissioner of customs, as the case may be for reasons to be recorded in writing, may allow payment of duty by any mode other than electronic payment.
Deferred payment not to apply in certain cases / An eligible importer who fails to pay duty in full by due date more than once in a period of three consecutive months shall not be permitted to make deferred payment.
The facility of deferred payment shall not be restored unless the eligible importer has paid the duty in full along with the interest.
Exemption in respect of certain goods / Nothing contained in these rules shall apply to the goods which have not been assessed or not declared by the importer in the entry made under the Act.
Warehousing without warehousing’ under the Customs Act, 1962
1)Storage of imported goods in warehouse pending clearance or removal
[Section 49] [Inserted by Finance Act, 2017 w.e.f. 31.3.2017]: Where-
a) In the case of any imported goods, whether dutiable or not entered for home consumption the Assistant commissioner of customs or Deputy Commissioner of Customs is satisfied on the application of the importer that the goods cannot be cleared within a reasonable time;
b)In the case of any imported dutiable goods, entered for warehousing, the Assistant Commissioner of Customs or Deputy Commissioner of customs is satisfied on the application of the importer that the goods cannot be removed for deposit in a warehouse within a reasonable time, the goods may pending clearance or removal, as the case may be, be permitted to be stored in a public warehouse for a period not exceeding 30 days.
However, goods which are permitted to be stored in a public warehouse shall not be
deemed to be warehoused goods for the purposes of this Act under this section and
accordingly the provisions of warehousing shall not apply to such goods.
2)Extension by Principal Commissioner or Commissioner for further period of 30 days:The Principal commissioner or Commissioner of Customs may extend the period of storage for a further period not exceeding 30 days at a time.
The said goods are kept in warehouse so as to avoid demurrage charges charged by the port trust authority/ custodians of cargo, if goods remain in their custody beyond the stipulated period.
Passenger and crew departure manifest and passenger name record information [Section 41A] [Inserted by Finance 2017 w.e.f. 31-03-2017]:
1) Person-in-charge to file department manifest: The person-in- charge of a conveyance that departs from India to a place outside India or any other person as may be specified by the Central Government by notification in the Official Gazette, shall deliver to the proper officer-
i)the passenger and crew departure manifest, and
ii) the passenger name record information of departing passengers,
in such form, containing such particulars, in such manner and within such time, as may be prescribed.
2) Penalty for non filing of manifest within time limit-Not exceeding Rs. 50,000: where the passenger and crew departure manifest or the passenger name record information or any part thereof is not delivered to the proper officer within the prescribed time and if the proper officer is satisfied that there was no sufficient cause for such delay, the person-in charge or the other person referred to in Section 40A(1) shall be liable to such penalty, not exceeding Rs. 50,000 as may be prescribed.
Obligation to furnish information [Section 108A] [Inserted by Taxation laws (Amendment) Act, 2017 w.e.f. 4-5-2017]:
1) Person liable to furnish information: Any specified person who is responsible for maintaining record of registration law for the time being in force, any other information under any of the Acts specified above or under any other law for the time being in force, which is considered relevant for the purposes of this Act, shall furnish such information to the proper officer in such manner as may be prescribed by rules made under this Act.
2) Specified persons: Any persons, being-
a)a local authority or other public body or association; or
b) any authority of the State Government responsible for the collection of VAT or sales tax or any other tax relating to the goods or services; or
c) an income tax authority
d)a Banking company
e) a co-operative bank
f)a financial institution or a non-banking finicalcompany as a specified under RBI Act, 1934; or
g) a State Electricity Board; or an electricity distribution or transimission licensee under the Electricity Act, 2003, or any other entity entrusted, as the case may be, with such functions by the Central Government or the State government; or
h) the Registrar or Sub-Registrar of the Registration Act, 1908; or
i) a Registrar of the Companies Act, 2013 or
j) motor vehicles registering authority under the Motor Vehicles Act, 1988; or
k) the collector of the Right to Fair Compensation and Transparency in Land Acquisiton, Rehabilitation and Resettlement Act, 2013; or
l)the recognised stock exchange
m) a depository or
n) the Post Master General; or
o) the Director General of Foreign Trade; or
p) the General Manger 1of a Zonal Railway ; or
q) an officer of the Reserve Bank of India
3) Intimation on defective information: Where the proper officer considers that the information furnished under section 108A(1) is defective, he may intimate the defect to the person who has furnished such information and give him an opportunity of rectifying the defect within a periods of 7 days from the date of such intimation or within such further period which, on an application made in this behalf, the proper officer may allow.
If the defect is not rectified within the said period of 7 days or m further period so allowed, then such information shall be deemed as not furnished and the provisions of the this Act, shall apply.
4)Notice to furnish information: Where a person who is required to furnish information has not furnished the same within the time specified in Section 108A(1) or 108A(2),the proper officer may serve upon him a notice requiring him to furnish such information within a period not exceeding 30 days from the date of service of the notice and such person shall furnish such information.
5) Penalty for failure to furnish information [Section 108B]:Where the person who is required to furnish information under Section 108A fails to do so within the period specified in the notice issued under Section 108A(3) thereof, the proper officer may direct such person to pay by way of penalty, a sum of Rs. 100 for each day of the period during which the failure to furnish such information continues.