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Budget Highlights
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Budgetary Changes: Customs Act & Customs Tariff Act

February 2, 2018 12344 Views
Ashok Nawal
Managing Director, Bizsolindia Services Pvt. Ltd.

Hon Finance Minister have to applauded for presenting one of the best since independence, which focuses on agriculture, health, Education, MSME, Infrastructure and employment. Customs Act has been amended mainly to remove the animalizes / errors, bringing transparency, focusing on less transaction cost and more focusing on lesser appeals and adjudications.

Further, Tariff rate of number of commodities have been increased mainly focusing and leveraging on the dream of Hon/ Prime Minister Shri Narendrabhai Modi to encourage Make in India and to discourage the imports. It is important to bring the provision of sharing of information of trade facilitation across the country based on the mutual arrangement.

Road & Infrastructure Cess has been introduced on importation of goods specified in Schedule VI of the Tariff, which includes motor spirit and high speed diesel, Social Welfare Surcharge on the goods specified in the First Schedule of Customs Tariff Act at the rate of 10% on aggregate of duties, taxes and cesses, antidumping duty to provide finance to education, health and social security.

Number of amendments in Customs Act 1962 has been suggested and almost 46 amendments have been made in the Customs Act and Customs Tariff Act which has been highlighted below.

CUSTOMS ACT 1962 :

Clause of Finance Bill

Section

Amendment

Author's Analysis

54

Any Section of Customs Act

Wording of import manifest and export manifest has been renamed as arrival manifest or import manifest" and "departure manifest or export manifest.

Addition has been made as arrival manifest along with import manifest and departure manifest along with export manifest, it means all movement of goods including vessels, conveyance and aircrafts which will also have to be manifested.

55

1(2)

It extends to the whole of India "and, save as otherwise provided in this Act, it applies also to any offence or contravention thereunder committed outside India by any person"

Amendment has been made with objective so as to include the scope of Customs Act to cover any offence and contravention committed by any person outside India.

56

2(2)

(2) "assessment" means determination of the dutiability of any goods and the amount of duty, tax, cess or any other sum so payable, if any, under this Act or under the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act) or under any other law for the time being in force, with reference to––

(a) the tariff classification of such goods as determined in accordance with the provisions of

the Customs Tariff Act;

(b) the value of such goods as determined in accordance with the provisions of this Act and

the Customs Tariff Act;

(c) exemption or concession of duty, tax, cess or any other sum, consequent upon any

notification issued therefor under this Act or under the Customs Tariff Act or under any other

law for the time being in force;

(d) the quantity, weight, volume, measurement or other specifics where such duty, tax,

cess or any other sum is leviable on the basis of the quantity, weight, volume, measurement or

other specifics of such goods;

(e) the origin of such goods determined in accordance with the provisions of the Customs

Tariff Act or the rules made thereunder, if the amount of duty, tax, cess or any other sum is

affected by the origin of such goods;

(f) any other specific factor which affects the duty, tax, cess or any other sum payable on such goods, and includes provisional assessment, self-assessment, re-assessment and any assessment in which the duty assessed is nil;';

Scope of assessement has been clear cut mentioned so as to include classification, valuation, exemptions, quantity, wt, volume and measurement, origin of goods and other specific factors for provisional assessment, self-assessment, re-assessment and any assessment even if duty is nil.

56

2(6)

Central Board of Indirect Taxes and Customs

Name of CBEC has been changed to CBITC

56

2(28)

"Indian Customs Waters" means the 20[waters extending into the sea up to the limit of Exclusive Economic Zone under section 7 of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, (80 of 1976)] and includes any bay, gulf, harbour, creek or tidal river;

The limit of Indian Custom Water has been extended for the coverage under the Customs Act

56

30(AA)

'(30AA) "notification" means notification published in the Official Gazette and the expression "notify" with its cognate meaning and grammatical variation shall be construed accordingly

Notify includes Notification to be published in the official Gazette or electronically notified.

57

11(3)

(3) Any prohibition or restriction or obligation relating to import or export of any goods or class of goods or clearance thereof provided in any other law for the time being in force, or any rule or regulation made or any order or notification issued thereunder, shall be executed under the provisions of that Act only if such prohibition or restriction or obligation is notified under the provisions of this Act, subject to such exceptions, modifications or adaptations as the Central Government deems fit.".

This is a welcome provision. Even if there are restrictions, prohibitions or obligations w.r.t. import & exports under any other law e.g. IGST Act or Foreign Trade Policy etc. until notification under Customs Act is issued, such amendment in other laws will not have any impact under Customs law.

This change will be effected from the date to be notified by the Central Government.

58

17(2)

(2) The proper officer may verify the entries made under section 46 or section 50 and the self-assessment of goods referred to in subsection (1) and for this purpose, examine or test any imported goods or export goods or such part thereof as may be necessary.

Provided that the selection of cases for verification shall primarily be on the basis of risk

evaluation through appropriate selection criteria.";

The scope of self-assessment has been included so as to include entry of goods on importation and entry of goods on exportation.

Further proviso has been inserted providing legal backing for risk based selection of Bill of Entry / Shipping Bill.

58

17(3)

(3) For the purposes of verification under sub-section (2), the proper officer may require the importer, exporter or any other person to produce any document or information, whereby the duty leviable on the imported goods or export goods, as the case may be, can be ascertained and thereupon, the importer, exporter or such other person shall produce such document or furnish such information.

Such documents will be called only for verification when case has been taken under Risk Based Assessment.

It will avoid lot of

58

17(5)

(5) Where any re-assessment done under sub-section (4) is contrary to the self-assessment done by the importer or exporter regarding valuation of goods, classification, exemption or concessions of duty availed consequent to any notification issued therefor under this Act and in cases other than those where the importer or exporter, as the case may be, confirms his acceptance of the said re- assessment in writing, the proper officer shall pass a speaking order on the re-assessment, within fifteen days from the date of re-assessment of the bill of entry or the shipping bill, as the case may be

Scope of re-assessment has been increased manifold and restrictions omitted.

58

17(6)

(6) Where re-assessment has not been done or a speaking order has not been passed on re- assessment, the proper officer may audit the assessment of duty of the imported goods or export goods at his office or at the premises of the importer or exporter, as may be expedient, in such manner as may be prescribed.

The provision has been omitted w.r.t. provisions of audit, since there is separate chapter provided for audit.

59

18(1)

(1) Notwithstanding anything contained in this Act but without prejudice to the provisions of section 46 &50

(a) where the importer or exporter is unable to make self-assessment under sub-section (1) of section 17 and makes a request in writing to the proper officer for assessment; or

(b) where the proper officer deems it necessary to subject any imported goods or export goods to any chemical or other test; or

(c) where the importer or exporter has produced all the necessary documents and furnished full information but the proper officer deems it necessary to make further enquiry; or

(d) where necessary documents have not been produced or information has not been furnished and the proper officer deems it necessary to make further enquiry,

the proper officer may direct that the duty leviable on such goods be assessed provisionally if the importer or the exporter, as the case may be, furnishes such security as the proper officer deems fit for the payment of the deficiency, if any, between the duty as may be finally assessed or re-assessed as the case may be, and the duty provisionally assessed.]

Provisional assessment will cover exports also.

59

18(1A)

(1A) Where, pursuant to the provisional assessment under sub-section (1), if any document or information is required by the proper officer for final assessment, the importer or exporter, as the case may be, shall submit such document or information within such time, and the proper officer shall finalise the provisional assessment within such time and in such manner, as may be prescribed.'';

Time limit and procedure will be notifying for making a final assessment in case of the provisional assessment and importer / exporter has to furnish the documents within the time limit prescribed for finalization of the assessment.

59

18(3)

(3) The importer or exporter shall be liable to pay interest, on any amount payable to the Central Government, consequent to the final assessment order 19[or re-assessment order] under sub-section (2), at the rate fixed by the Central Government under section 28AA from the first day of the month in which the duty is provisionally assessed till the date of payment thereof.

Error has been rectified retrospectively from 8th April 2011.

60

25A & 25 B

25A Inward processing of goods.

Where the Central Government is satisfied that it is necessary in the public interest so to

do, it may, by notification, exempt such of the goods which are imported for the purposes of repair, further processing or manufacture, as may be specified therein, from the whole or any part of duty of customs leviable thereon, subject to the following conditions, namely:–

(a) the goods shall be re-exported after such repair, further processing or manufacture, as the case may be, within a period of one year from the date on which the order for clearance of the imported goods is made;

(b) the imported goods are identifiable in the export goods; and

(c) such other conditions as may be specified in that notification.

25 B Outward processing of goods.

Notwithstanding anything contained in section 20, where the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification, exempt such of the goods which are re-imported after being exported for the purposes of repair, further processing or manufacture, as may be specified therein, from the whole or any part of duty of customs leviable thereon, subject to the following conditions, namely:––

(a) the goods shall be re-imported into India after such repair, further processing or manufacture, as the case may be, within a period of one year from the date on which the order permitting clearance for export is made;

(b) the exported goods are identifiable in the re-imported goods; and

(c) such other conditions as may be specified in that notification.".

This provision has been Inserted, so as to empower Central Govt. To exempt or to grant partial exemption for re-importation and exportation thereof within 1 year period for repairs or further processing from the date of late export order.

61

28(1)(a)

SECTION 28. 50[Recovery of 51[duties not levied or not paid or short-levied or short- paid] or erroneously refunded. - (1) Where any 52[duty has not been levied or not paid or short-levied or short-paid] or erroneously refunded, or any interest payable has not been paid, part-paid or erroneously refunded, for any reason other than the reasons of collusion or any wilfulmis-statement or suppression of facts,-

(a) the proper officer shall, within 53[two years] from the relevant date, serve notice on the person chargeable with the duty or interest which has not been so levied 54[or paid] or which has been short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice;

"Provided that before issuing notice, the proper officer shall hold pre-notice consultation with the person chargeable with duty or interest in such manner as may be prescribed

This is also a welcome provision for pre-notice consultation before issuance of SCN. Hope this will not be used for increase in corruption at the cost of Ex-Chequer.

61

28(7A)

"(7A) Save as otherwise provided in clause (a) of sub-section (1) or in sub-section (4), the

proper officer may issue a supplementary notice under such circumstances and in such manner as may be prescribed, and the provisions of this section shall apply to such supplementary notice as if it was issued under the said sub-section (1) or sub-section (4).";

This provision has been inserted so as to avoid undue benefit on account of errors and omission while drafting the SCN and supplementary SCN also can be issued.

61

28(9)

(9) The proper officer shall determine the amount of duty or interest under sub-section (8),-

(a) within six months from the date of notice, where it is possible to do so, in respect of cases falling under clause (a) of sub- section (1);

(b) within one year from the date of notice, where it is possible to do so, in respect of cases falling under sub-section (4).

Provided that where the proper officer fails to so determine within the specified period, any officer senior in rank to the proper officer may, having regard to the circumstances under which the proper officer was prevented from determining the amount of duty or interest under sub-section (8), extend the period specified in clause (a) to a further period of six months and the period specified in clause (b) to a further period of one year:

Provided further that where the proper officer fails to determine within such extended period, such proceeding shall be deemed to have concluded as if no notice had been issued.

This is a welcome provision.

SCN will have to be issued within the period of limitation and now there will be no desecration. However, only the senior rank officers will be allowed to extend the time limit by 6 months and could not be extended, the proceedings will be deemed to be concluded.

61

28(9A)

"(9A) Notwithstanding anything contained in sub-section (9), where the proper officer is unable to determine the amount of duty or interest under sub-section (8) for the reason that––

(a) an appeal in a similar matter of the same person or any other person is pending before

the Appellate Tribunal or the High Court or the Supreme Court; or

(b) an interim order of stay has been issued by the Appellate Tribunal or the High Court or

the Supreme Court; or

(c) the Board has, in a similar matter, issued specific direction or order to keep such matter

pending; or

(d) the Settlement Commission has admitted an application made by the person concerned, the proper officer shall inform the person concerned the reason for non-determination of the amount of duty or interest under sub-section (8) and in such case, the time specified in subsection

(9) shall apply not from the date of notice, but from the date when such reason ceases to exist.";

In such cases, period will be counted from the date of final order and not from the date of notice.

61

28(10A)

"(10A) Notwithstanding anything contained in this Act, where an order for refund under sub-section (2) of section 27 is modified in any appeal and the amount of refund so determined is less than the amount refunded under said sub-section, the excess amount so refunded shall be recovered along with interest thereon at the rate fixed by the Central Government under section 28AA, from the date of refund up to the date of recovery, as a sum due to the Government.

Excess amount of refund granted will have to be paid back along with interest.

61

28(10B)

(10B) A notice issued under sub-section (4) shall be deemed to have been issued under subsection (1), if such notice demanding duty is held not sustainable in any proceeding under this Act, including at any stage of appeal, for the reason that the charges of collusion or any willful mis-statement or suppression of facts to evade duty has not been established against the person to whom such notice was issued and the amount of duty and the interest thereon shall be computed accordingly.";

Explanation 4.––For the removal of doubts, it is hereby declared that in cases where notice has

been issued for non-levy, not paid, short-levy or short-paid or erroneous refund after the 14th day of May, 2015, but before the date on which the Finance Bill, 2018 receives the assent of the President, they shall continue to be governed by the provisions of section 28 as it stood immediately before the date on which such assent is received.".

Even in case of suppression of facts, collusion or misstatement, Appeal is allowed demand of duty alongwith interest, considering that SCN is deemed to be issued within time limit and therefore demand at least for pertaining to one year will sustain.

Explanation 4 has been inserted so as to give retrospective effect to this provision from 14th May 2015

62

28E(a)

[(a) activity means import or export and includes any new business of import or export proposed to be undertaken by the existing importer or exporter, as the case may be;]

Definition of activity has been omitted mainly to enhance the scope of advance ruling authority.

62

28E(b)

advance ruling" means a written decision on any of the questions referred to in section 28H raised by the applicant in his application in respect of any goods prior to its importation or exportation;

Now advance ruling can be applied only prior to importation or exportation

62

28E(ba)

'(ba) "Appellate Authority" means the Authority for Advance Rulings constituted under section 245-O of the Income-tax Act, 1961;

Appellate Authority will be the same as constituted under Income Tax Act. This is in line with provisions of GST so as to have appeal before Appellate Authority against the order of Advance Ruling Authority.

62

28E(c)

'(c) "applicant" means any person,––

(i) holding a valid Importer-exporter Code Number granted under section 7 of the Foreign

Trade (Development and Regulation) Act, 1992; or

(ii) exporting any goods to India; or

(iii) with a justifiable cause to the satisfaction of the Authority, who makes an application for advance ruling under section 28H;'

This is in line with the definition has been changed which is line with GST Law, so as to include any person holding valid IEC.

62

28(e), (f), (g)

'(e) "Authority" means the Customs Authority for Advance Rulings appointed under section 28EA;';

(f) Chairperson" means the Chairperson of the Authority;

(g) Chairperson" means the Chairperson of the Authority;

There will be a separate Advance Ruling Authority under the Customs Act.

The definition has been amended so as to include Chairperson of the Appellate Authority

63

28(EA)

28EA. (1) The Board may, for the purposes of giving advance rulings under this Act, by notification, appoint an officer of the rank of Principal Commissioner of Customs or Commissioner of Customs to function as a Customs Authority for Advance Rulings:

Provided that till the date of appointment of the Customs Authority for Advance Rulings, the

existing Authority for Advance Rulings constituted under section 245-O of the Income-tax Act, 1961

shall continue to be the Authority for giving advance rulings for the purposes of this Act.

(2) The offices of the Authority may be established in New Delhi and at such other places, as the

Board may deem fit.

(3) Subject to the provisions of this Act, the Authority shall exercise the powers and authority conferred on it by or under this Act.''.

Advance Ruling Authority for customs will include the officer in the rank of Principal Commissioner of Customs or Commissioner

64

28F(1)

(1) Subject to the provisions of this Act, the Appellate Authority for deciding appeal under this Chapter and the said Appellate Authority" shall exercise the jurisdiction, powers and authority conferred on it by or under this Act:

Provided that the Member from the Indian Revenue Service (Customs and Central Excise), who is qualified to be a Member of the Board, shall be the revenue Member of the Appellate Authority for the purposes of this Act.

This power has been given to the Appellate Authority

64

28F(3)

"(3) On and from the date of appointment of the Customs Authority for Advance Rulings, every application and proceeding pending before the erstwhile Authority for Advance Rulings shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such appointment

Earlier pending cases will be transferred to new authority

65

28H (2)(d)

"(d) applicability of notifications issued in respect of tax or duties under this Act or the

Customs Tariff Act, 1975 or any tax or duty chargeable under any other law for the time being

in force in the same manner as duty of customs leviable under this Act or the Customs Tariff  Act;";

Wording of "tax" has been included so as to cover IGST

65

28H(f)

"(f) any other matter as the Central Government may, by notification, specify.";

It empowers the Central Govt. to add any scope for advance ruling

65

28H(5)

The applicant may be represented by any person resident in India who is authorised in this behalf.

Explanation.––For the purposes of this sub-section "resident" shall have the same meaning as assigned to it in clause (42) of section 2 of the Income-tax Act, 1961.'.

Representation can be mad e only by Indian resident. This is perhaps to stop the entry of non-Indian for representation before advance Ruling Authority and Appellate Authority

66

28 (I)(6)

(6) The Authority shall pronounce its advance ruling in writing within 3 month of the receipt of application.

Decision has to be given within the period of 3 months. Period has been reduced to 3 months.

67

28(K)(1)

(1) Where the Authority finds, on a representation made to it by the 12[Principal Commissioner of Customs or Commissioner of Customs] or otherwise, that an advance ruling pronounced by it under sub-section (6) of section 28-I has been obtained by the applicant by fraud or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act shall apply (after excluding the period beginning with the date of such advance ruling and ending with the date of order under this sub-section)to the applicant as if such advance ruling had never been made.

Provided that in computing the period of two years referred to in clause (a) of sub-section (1)

of section 28, or five years referred to in sub-section (4) thereof, for service of notice for recovery of any duty not levied, short-levied, not paid or short-paid on account of the advance ruling, the period beginning with the date of such advance ruling and ending with the date of the order under this sub-section shall be excluded.".

Period has been omitted for making order void, when such order has been obtained by mis-representation.

When such order has made void, the period of limitation will be counted from the order and not from the date of payment of duty or otherwise as the case may be.

68

28(KA) (1)(2)

28KA Appeal

28KA. (1) Any officer authorised by the Board, by notification, or the applicant may file an appeal

to the Appellate Authority against any ruling or order passed by the Authority, within sixty days from the date of the communication of such ruling or order, in such form and manner as may be prescribed:

Provided that where the Appellate Authority is satisfied that the appellant was prevented by

sufficient cause from presenting the appeal within the period so specified, it may allow a further period of thirty days for filing such appeal.

(2) The provisions of section 28-I and 28J shall, mutatis mutandis, apply to the appeal under this section.''

This is in line with GST provisions and now Appeal also can be made against the order of Advance Ruling before Appellate Authority.

69

28(L)

(1) The Authority or Appellate Authorityshall, for the purpose of exercising its powers regarding discovery and inspection, enforcing the attendance of any person and examining him on oath, issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908).

(2) The Authority or Appellate Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974), and every proceeding before the Authority or Appellate Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860).

This is in line with GST provisions and now Appeal also can be made against the order of Advance Ruling before Appellate Authority.

70

28M

28M Procedure for Authority and Appellate Authority.

(1) The Authority shall follow such procedure as may be prescribed.

(2) The Appellate Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure in all matters arising out of the exercise of its powers and authority under this Act.".

Procedure to be followed for Authority and Appellate Authority has been prescribed

71

30(1)

(1) The person-in-charge of -

(i) a vessel; or

(ii) an aircraft; or

(iii) a vehicle,

carrying imported goods or export goodsor any other person as may be specified by the Central Government, by notification in the Official Gazette, in this behalf shall, in the case of a vessel or an aircraft, deliver to the proper officer 3[an import manifest by presenting electronically prior to the arrival] of the vessel or the aircraft, as the case may be, and in the case of a vehicle, an import report within twelve hours after its arrival in the customs station, in the such form and manner as may be prescribedand if the import manifest or the import report or any part thereof, is not delivered to the proper officer within the time specified in this sub-section and if the proper officer is satisfied that there was no sufficient cause for such delay, the person-in-charge or any other person referred to in this sub-section, who caused such delay, shall be liable to a penalty not exceeding fifty thousand rupees:]

4[Provided that the 5[Principal Commissioner of Customs or Commissioner of Customs] may, in cases where it is not feasible to deliver import manifest by presenting electronically, allow the same to be delivered in any other manner.]

Scope has been enhance so as to include export of the goods. Methodology of manifestation will be notified separately.

72

41(1)

(1) The person-in-charge of a conveyance carrying export goods or imported goods shall, before departure of the conveyance from a customs station, deliver to the proper officer in the case of a vessel or aircraft, an [export manifest by presenting electronically], and in the case of a vehicle, an export report, in the such form and manner as may be prescribed and in case, the person-in-charge fails to deliver

the departure manifest or export manifest or the export report or any part thereof within such

time, and the proper officer is satisfied that there is no sufficient cause for such delay, such

person-in-charge shall be liable to pay penalty not exceeding fifty thousand rupees: :

 

8[Provided that the 5[Principal Commissioner of Customs or Commissioner of Customs] may, in cases where it is not feasible to deliver the export manifest by presenting electronically, allow the same to be delivered in any other manner.]

Scope has been enhance so as to include export of the goods. Methodology of manifestation will be notified separately.

73

45(2)(b)

(b) shall not permit such goods to be removed from the customs area or otherwise dealt with, except under and in accordance with the permission in writing of the proper officer or in such manner as may be prescribed.

Procedure and manner will be prescribed for removal of goods from the custom area.

74

46(1)

(1) The importer of any goods, other than goods intended for transit or transhipment, shall make entry thereof by presenting electronicallyon the customs automated system to the proper officer a bill of entry for home consumption or warehousing in the in such form and manner as may be prescribed:

Provided that the Principal Commissioner of Customs or Commissioner of Customs may, in cases where it is not feasible to make entry by presenting electronically on the customs automated system, allow an entry to be presented in any other manner:

Provided further that] if the importer makes and subscribes to a declaration before the proper officer, to the effect that he is unable for want of full information to furnish all the particulars of the goods required under this sub-section, the proper officer may, pending the production of such information, permit him, previous to the entry thereof (a) to examine the goods in the presence of an officer of customs, or (b) to deposit the goods in a public warehouse appointed under section 57 without warehousing the same.

Customs Automated System is inserted so as to include filing of documents on ICE Gate

74

46(3)

[(3) The importer shall present the bill of entry under sub-section (1) 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:

Provided that a bill of entry may be presentedat any time not exceeding thirty days prior to of the expected arrival of the aircraft or vessel or vehicle by which the goods have been shipped for importation into India:

Substance remains the same. Advance Bill of Entry can be filed within 30 days from expected arrival

74

46(4)

(4) The importer while presenting a bill of entry shall make and subscribe to a declaration as to the truth of the contents of such bill of entry and shall, in support of such declaration, produce to the proper officer the invoice, if any, and such other documents relating to the imported goods as may be prescribed

Self-Declaration has been made more exhaustive

74

46(4A)

"(4A) The importer who presents a bill of entry shall ensure the following, namely:––

(a) the accuracy and completeness of the information given therein;

(b) the authenticity and validity of any document supporting it; and

(c) compliance with the restriction or prohibition, if any, relating to the goods under this Act or under any other law for the time being in force.".

Self-Declaration has been made more exhaustive

75

47(1)

(1)] Where the proper officer is satisfied that any goods entered for home consumption are not prohibited goods and the importer has paid the import duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance of the goods for home consumption:

Provided that such order may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection

Provided further that criteria the Central Government may, by notification in the Official Gazette, permit certain class of importers to make deferred payment of said duty or any charges in such manner as may be provided by rules.]

Let import for home consumption will be allowed electronically / through Customs Automated Systems of ICE Gate.

76

50((1)

(1) The exporter of any goods shall make entry thereof by presenting electronicallyon the customs automated system" to the proper officer in the case of goods to be exported in a vessel or aircraft, a shipping bill, and in the case of goods to be exported by land, a bill of export in the in such form and manner as may be Prescribed.

Provided that the 1[Principal Commissioner of Customs or Commissioner of Customs] may, in cases where it is not feasible to make entry by presenting electronically, allow an entry to be presented in any other manner.]

Customs Automated System is inserted so as to include filing of documents on ICE Gate

76

50(3)

(3) The exporter who presents a shipping bill or bill of export under this section shall ensure

the following, namely:––

(a) the accuracy and completeness of the information given therein;

(b) the authenticity and validity of any document supporting it; and

(c) compliance with the restriction or prohibition, if any, relating to the goods under this Act

or under any other law for the time being in force.".

Self-Declaration has been made more exhaustive

77

51(1)

Where the proper officer is satisfied that any goods entered for export are not prohibited goods and the exporter has paid the duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance and loading of the goods for exportation:

Provided that such order may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria:

Provided further thatthe Central Government may, by notification in the Official Gazette, permit certain class of exporters to make deferred payment of said duty or any charges in such manner as may be provided by rules.]

Let Export order will be allowed electronically / through Customs Automated Systems of ICE Gate.

78

Chapter VII

PAYMENTS THROUGH ELECTRONIC CASH LEDGER

51A. (1) Every deposit made towards duty, interest, penalty, fee or any other sum payable by a person under the provisions of this Act or under the Customs Tariff Act, 1975 or under any other law for the time being in force or the rules and regulations made thereunder, using authorised mode of payment shall, subject to such conditions and restrictions, be credited to the electronic cash ledger of such person, to be maintained in such manner, as may be prescribed.

(2) The amount available in the electronic cash ledger may be used for making any payment towards duty, interest, penalty, fees or any other sum payable under the provisions of this Act or under the Customs Tariff Act, 1975 or under any other law for the time being in force or the rules and regulations made thereunder in such manner and subject to such conditions and within such time as may be prescribed.

(3) The balance in the electronic cash ledger, after payment of duty, interest, penalty, fee or any other amount payable, may be refunded in such manner as may be prescribed.

(4) Notwithstanding anything contained in this section, if the Board is satisfied that it is necessary or expedient so to do, it may, by notification, exempt the deposits made by such class of persons or with respect to such categories of goods, as may be specified in the notification, from all or any of the provisions of this section

New Chapter PAYMENTS THROUGH ELECTRONIC CASH LEDGER has been introduced, so as to allow to pay in advance the amount of duty, tax, penalty, interest etc.

Effective date will be notified separately.

This is a welcome provision which will reduce the period required for importation.

79

54(1)

(1) Where any goods imported into a customs station are intended for transhipment, a bill of transhipment shall be presented to the roper officer in thesuch form and manner as may be prescribed:

Provided that where the goods are being transhipped under an international treaty or bilateral agreement between the Government of India and Government of a foreign country, a declaration for transhipment instead of a bill of transhipment shall be presented to the proper officer in thesuch form and manner as may be prescribed.

Forms & Procedure will be prescribed.

80

60(1)

Provided that such order may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria

Customs Automated System is inserted so as to include filing of documents on ICE Gate

81

68

Provided that the order referred to in clause (c) may also be made electronically through thecustoms automated system on the basis of risk evaluation through appropriate selection criteria:

Provided further that that the owner of any warehoused goods may, at any time before an order for clearance of goods for home consumption has been made in respect of such goods, relinquish his title to the goods upon payment of rent, interest, other charges and penalties that may be payable in respect of the goods and upon such relinquishment, he shall not be liable to pay duty thereon.

Provided also that the owner of any such warehoused goods shall not be allowed to relinquish his title to such goods regarding which an offence appears to have been committed under this Act or any other law for the time being in force.

Order will be issued electronically / through Customs Automated Systems of ICE Gate.

82

69(1)

Provided that the order referred to in clause (c) may also be made electronically through the customsautomated system on the basis of risk evaluation through appropriate selection criteria.

Proviso has been inserted so as to include Customs Automated System in ICE Gate.

83

74

(1) When any goods capable of being easily identified which have been imported into India and upon which 1[any duty has been paid on importation, -

(i) are entered for export and the proper officer makes an order permitting clearance and loading of the goods for exportation under section 51; or

(ii) are to be exported as baggage and the owner of such baggage, for the purpose of clearing it, makes a declaration of its contents to the proper officer under section 77 (which declaration shall be deemed to be an entry for export for the purposes of this section) and such officer makes an order permitting clearance of the goods for exportation; or

(iii) are entered for export by post under clause (a) of section 84 and the proper officer makes an order permitting clearance of the goods for exportation,

Error has been corrected.

Drawback u/s 74 of Customs Act is allowed even on the export shipment made by post

84

75

(1) Where it appears to the Central Government that in respect of goods of any class or description 4[manufactured, processed or on which any operation has been carried out in India] 5[, being goods which have been entered for export and in respect of which an order permitting the clearance and loading thereof for exportation has been made under section 51 by the proper officer], 6[or being goods entered for export by post under clause (a) of section 84 and in respect of which an order permitting clearance for exportation has been made by the proper officer], a drawback should be allowed of duties of customs chargeable under this Act on any imported materials of a class or description used in the 7[manufacture or processing of such goods or carrying out any operation on such goods], the Central Government may, by notification in the Official Gazette, direct that drawback shall be allowed in respect of such goods in accordance with, and subject to, the rules made under sub-section (2):

Error has been corrected.

Drawback u/s 75 of Customs Act is allowed even on the export shipment made by post

85

Chapter XI

Special provisions regarding baggage, goods imported or exported by POST COURIER and stores Baggage

Courier also included in addition to Post

86

83

Rate of duty and tariff valuation in respect of goods imported or exported by post of courier. - (1) The rate of duty and tariff value, if any, applicable to any goods imported by post shall be the rate and valuation in force on the date on which the postal authorities present to the proper officer a list containing the particulars of such goods for the purpose of assessing the duty thereon :

Provided that if such goods are imported by a vessel and the list of the goods containing the particulars was presented before the date of the arrival of the vessel, it shall be deemed to have been presented on the date of such arrival.

(2) The rate of duty and tariff value, if any, applicable to any goods exported by post shall be the rate and valuation in force on the date on which the exporter delivers such goods to the postal authorities for exportation.

Courier also included in addition to Post

87

84

Regulations regarding goods imported or to be exported by post or courier. - The Board may make regulations providing forthe form and manner in which an entry may be made in respect of goods imported or to be exported by postor Courier

(b) the examination, assessment to duty, and clearance of goods imported or to be exported by post or Courier;

(c) the transit or transhipment of goods imported by post, from one customs station to another or to a place outside India. Stores

 
88

CHAPTER XIIA AUDIT

CHAPTER XIIA AUDIT

99A. The proper officer may carry out the audit of assessment of imported goods or export goodsor of an auditee under this Act either in his office or in the premises of the auditee in such manner asmay be prescribed.

Explanation.––For the purposes of this section, "auditee" means a person who is subject to anaudit under this section and includes an importer or exporter or custodian approved under section 45or licensee of a warehouse and any other person concerned directly or indirectly in clearing, forwarding,stocking, carrying, selling or purchasing of imported goods or export goods or dutiable goods.'.

Introduced new chapter, since Risk based Assessment System and Self Assessment System, Audit is introduced at the premises of the Auditee.

89

109A

109A. Notwithstanding anything contained in this Act, the proper officer or any other officer

authorised by him in this behalf, may undertake controlled delivery of any consignment of such

goods and in such manner as may be prescribed, to––

(a) any destination in India; or

(b) a foreign country, in consultation with the competent authority of such country to which

such consignment is destined.

Explanation.––For the purposes of this section "controlled delivery" means the procedure of

allowing consignment of such goods to pass out of, or into, the territory of India with the knowledgeand under the supervision of proper officer for identifying the persons involved in the commissionof an offence or contravention under this Act.'.

Welcome provision to restrict the pass through of import consignment in Indian Territory.

90

110(2)

(2) Where any goods are seized under sub-section (1) and no notice in respect thereof is given under clause (a) of section 124 within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized:

Provided that the Principal Commissioner of Customs or Commissioner of Customs may, forreasons to be recorded in writing, extend such period to a further period not exceeding six monthsand inform the person from whom such goods were seized before the expiry of the period sospecified:

Provided further that where any order for provisional release of the seized goods has been passedunder section 110A, the specified period of six months shall not apply

Provision has been made to extend the period of 6 months for the issuance of SCN in case of Seizer subject to reasons recorded in witting and information to be given to the person of whom goods are seized.

Such powers has been given to Commissioner of the Customs.

91

122

Adjudication of confiscations and penalties. - In every case under this Chapter in which anything is liable to confiscation or any person is liable to a penalty, such confiscation or penalty may be adjudged, -

(a) without limit, by a Principal Commissioner of Customs or Commissioner of Customs] or a Joint Commissioner of Customs

(b) up to such limit, by such officers, as the Board may, by notification, specify

Specific limits provided in case of adjudication to the Deputy Commissioner or lower rank has been taken out from the Act, but new limits will be notified

92

124

Issue of show cause notice before confiscation of goods, etc. - No order confiscating any goods or imposing any penalty on any person shall be made under this Chapter unless the owner of the goods or such person -

(a) is given a notice in 40[writing with the prior approval of the officer of Customs not below the rank of 41[an Assistant Commissioner of Customs], informing] him of the grounds on which it is proposed to confiscate the goods or to impose a penalty;

(b) is given an opportunity of making a representation in writing within such reasonable time as may be specified in the notice against the grounds of confiscation or imposition of penalty mentioned therein; and

(c) is given a reasonable opportunity of being heard in the matter

Provided further that notwithstanding issue ofnotice under this section, the proper officer may issue a supplementary notice under such circumstances and in such manner as may be prescribed

Supplementary notice also can be issued and procedure will be prescribed even in the case of confiscation

93

125(1)

Option to pay fine in lieu of confiscation. –

(1) Whenever confiscation of any goods is authorised by this Act, the officer adjudging it may, in the case of any goods, the importation or exportation whereof is prohibited under this Act or under any other law for the time being in force, and shall, in the case of any other goods, give to the owner of the goods or, where such owner is not known, the person from whose possession or custody such goods have been seized,] an option to pay in lieu of confiscation such fine as the said officer thinks fit:

Provided that where the proceedings are deemed to be concluded under the proviso tosub-section (2) of section 28 or under clause (i) of sub-section (6) of that section in respect of thegoods which are not prohibited or restricted, the provisions of this section shall not apply:

Provided further that, without prejudice to the provisions of the proviso to sub-section (2) of section 115, such fine shall not exceed the market price of the goods confiscated, less in the case of imported goods the duty chargeable thereon.

The proviso of the section will not apply when proceedings are concluded or deemed to be concluded on the grounds of limitation for time limit for adjudication.

93

125(3)

Where the fine imposed under sub-section (1) is not paid within a period of one hundredand twenty days from the date of option given thereunder, such option shall become void, unlessan appeal against such order is pending.

Explanation.––For removal of doubts, it is hereby declared that in cases where an order undersub-section (1) has been passed before the date on which the Finance Bill, 2018 receives theassent of the President and no appeal is pending against such order as on that date, the optionunder said sub-section may be exercised within a period of one hundred and twenty days fromthe date on which such assent is received.".

Time limit for depositing the fine is fixed which is max 120 days from the date of order until the appeal is filed against such order.

94

128A(3)

The Commissioner (Appeals) shall, after making such further inquiry as may be necessary, pass such order, as he thinksjust and proper,––

(a) confirming, modifying or annulling the decision or order appealed against; or

(b) referring the matter back to the adjudicating authority with directions for fresh adjudication

or decision, as the case may be, in the following cases, namely:—

(i) where an order or decision has been passed without following the principles of natural

justice; or

(ii) where no order or decision has been passed after re-assessment under section 17; or

(iii) where an order of refund under section 27 has been issued by crediting the amount to Fund without recording any finding on the evidence produced by the applicant

Now Commissioner Appeals can remand the case de-novo with specified circumstances.

95 143AA

143AA. Notwithstanding anything contained in any other provision of this Act, the Board may, forthe purposes of facilitation of trade, take such measures or prescribe separate procedure ordocumentation for a class of importers or exporters or for categories of goods or on the basis of themodes of transport of goods, in order to,—

(a) maintain transparency in the import and export documentation; or

(b) expedite clearance or release of goods entered for import or export; or

(c) reduce the transaction cost of clearance of importing or exporting goods; or

(d) maintain balance between customs control and facilitation of legitimate trade.".

Government is empowered to prescribe procedure or documentation for specific class of importers or exporters or categories of the goods to simplify or provide different procedures to facilitate the trades, which will reduce the transaction cost and remove the difficulties.

96

151B

151B Reciprocal arrangement for exchange of informationFacilitating trade.

(1) The Central Government may enter into an agreement or any other arrangement withthe Government of any country outside India or with such competent authorities of that country, asit deems fit, for facilitation of trade, enforcing the provisions of this Act and exchange of informationfor trade facilitation, effective risk analysis, verification of compliance and prevention, combatingand investigation of offences under the provisions of this Act or under the corresponding laws inforce in that country.

(2) The Central Government may, by notification, direct that the provisions of this section shall

apply to the contracting State with which reciprocal agreement or arrangements have been made,subject to such conditions, exceptions or qualifications as may be specified in that notification.

(3) Subject to the provisions of sub-section (2), the information received under sub-section (1)

may also be used as evidence in investigations and proceedings under this Act.

(4) Where the Central Government has entered into a multilateral agreement for exchange of

information or documents for the purpose of verification of compliance in identified cases, the Boardshall specify the procedure for such exchange, the conditions subject to which such exchange shallbe made and designation of the person through whom such information shall be exchanged.

(5) Notwithstanding anything contained in sub-section (1) or sub-section (2) or sub-section (3),

anything done or any action taken or purported to have been done or taken, in pursuance to anyagreement entered into or any other arrangement made by the Central Government prior to the dateon which the Finance Bill, 2018 receives the assent of the President, shall be deemed to have beendone or taken under the provisions of this section.

Explanation.––For the purposes of this section, the expressions,––

(i) "contracting State" means any country outside India in respect of which agreement or

arrangements have been made by the Central Government with the Government or authority ofsuch country through an agreement or otherwise;

(ii) "corresponding law" means any law in force in the contracting State corresponding to any of the provisions of this Act or dealing with offences in that country corresponding to any of theoffences under this Act.'.

New provisions has been made to empowering the Govt. for reciprocal arrangement for exchange of information faciliting the trade.

97 153

153 Modes for service of notice, order,etc.

(1) An order, decision, summons, notice or any other communication under this Act or the

rules made thereunder may be served in any of the following modes, namely:—

(a) by giving or tendering it directly to the addressee or importer or exporter or his customsbroker or his authorised representative including employee, advocate or any other person or to any adult member of his family residing with him;

(b) by a registered post or speed post or courier with acknowledgement due, delivered to the

person for whom it is issued or to his authorised representative, if any, at his last known place of

business or residence;

(c) by sending it to the e-mail address as provided by the person to whom it is issued, or to thee-mail address available in any official correspondence of such person (d) by publishing it in a newspaper widely circulated in the locality in which the person to whomit is issued is last known to have resided or carried on business; or

(e) by affixing it in some conspicuous place at the last known place of business or residence of

the person to whom it is issued and if such mode is not practicable for any reason, then, by

affixing a copy thereof on the notice board of the office or uploading on the official website, if any.

(2) Every order, decision, summons, notice or any communication shall be deemed to have beenserved on the date on which it is tendered or published or a copy thereof is affixed or uploaded in themanner provided in sub-section (1).

(3) When such order, decision, summons, notice or any communication is sent by registered post

or speed post, it shall be deemed to have been received by the addressee at the expiry of the periodnormally taken by such post in transit unless the contrary is proved.".

SCN or orders or Summons or any letters can be issued by hand and can be delivered to employee, CHA, Advocate or any adult member of family or can be issued by Post or sped post or courier with acknowledgement receipt or electronically through email on the address available with customs, publishing in news paper or affixing the same on the last known address of the office / business or uploading of the official website of the notice board.

This will really cause the hardship for filling the reply / documents/ appeals in the prescribed period and importer / exporter will lose their appellate remedy.

98

157(2)

(1) Without prejudice to any power to make regulations contained elsewhere in this Act, the Board may make regulations consistent with this Act and the rules, generally to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely :-

(a) the formand manner to deliver or presentof a bill of entry, shipping bill, bill of export, import manifest, import report, export manifest, export report,35[bill of transhipment, declaration for transhipment] boat note and bill of coastal goods;

(ai) the manner of export of goods, relinquishment of title to the goods and abandoning them to customs and destruction or rendering of goods commercially valueless in the presence of the proper officer under clause (d) of sub-section (1) of section 26A;

(aii) the form and manner of making application for refund of duty under sub-section (2) of section 26A;]

(aa) the 38[form and manner] in which an application for refund shall be made under section 27

(ab) the form, the particulars, the manner and the time of delivering the passenger and crew manifest for arrival and departure and passenger name record information and the penalty for delay in delivering such information under sections 30A and 41A

(b) the conditions subject to which the transhipment of all or any goods under sub-section (3) of section 54, the transportation of all or any goods under section 56 and the removal of warehoused goods from one warehouse to another under section 67, may be allowed without payment of duty;

(c) the conditions subject to which any manufacturing process or other operations may be carried on in a warehouse under section 65.

(d) the time and manner of finalisation of provisional assessment;

(e) the manner of conducting pre-notice consultation;

(f) the circumstances under which, and the manner in which, supplementary notice may be issued;

(g) the form and manner in which an application for advance ruling or appeal shall be made, and the procedure for the Authority, under Chapter VB;

(h) the manner of clearance or removal of imported or export goods;

(i) the documents to be furnished in relation to imported goods;

(j) the conditions, restrictions and the manner of making deposits in electronic cash ledger, the utilisation and refund therefrom and the manner of maintaining such ledger;

(k) the manner of conducting audit;

(l) the goods for controlled delivery and the manner thereof;

(m) the measures and separate procedure or documentation for a class of importers or exporters or categories of goods or on the basis of the modes of transport of goods.".

Government will prescribed the rules for d) the time and manner of finalisation of provisional assessment;

(e) the manner of conducting pre-notice consultation;

(f) the circumstances under which, and the manner in which, supplementary notice may be issued;

(g) the form and manner in which an application for advance ruling or appeal shall be made,and the procedure for the Authority, under Chapter VB;

(h) the manner of clearance or removal of imported or export goods;

(i) the documents to be furnished in relation to imported goods;

(j) the conditions, restrictions and the manner of making deposits in electronic cash ledger, theutilisation and refund therefrom and the manner of maintaining such ledger;

(k) the manner of conducting audit;

(l) the goods for controlled delivery and the manner thereof;

(m) the measures and separate procedure or documentation for a class of importers or exportersor categories of goods or on the basis of the modes of transport of goods.".

99

Section 25 (1) of Customs Act

 Section 12(3) of Customs Tariff Act

(2) Refund shall be made of all such integrated tax which has been collected, but which would nothave been so collected, had the amendement made vide the notification referred to in sub-section (1)been in force at all material times:

Provided that an application for claim of integrated tax shall be made within a period of six monthsfrom the date on which the Finance Bill, 2018 receives assent of the President.

This is a retrospective amendment w.e.f. 1st July 2017.
Time limit prescribed to take the refund of IGST wrongly paid is only 6 months.

CUSTOMS TARIFF ACT CHANGES

Clause of Finance Bill

Section

Amendment

Bizsol Analysis

100

3 (7)

Any article which is imported into India shall in addition be liable to a Integrated Tax at such rate, not exceeding forty per cent. As is leviable u/s 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 under sub section (8) or sub-section (8A).

 
100 3(8A)

'(8A) Where the goods deposited in a warehouse under the provisions of the Customs Act, 1962 are sold to any person before clearance for home consumption or export under the said Act, the value of such goods for the purpose of calculating the integrated tax under sub-section (7) shall be,—

(a) where the whole of the goods are sold, the value determined under sub-section (8) or the transaction value of such goods, whichever is higher; or

(b) where any part of the goods is sold, the proportionate value of such goods as determined under sub-section (8) or the transaction value of such goods, whichever is higher:

Provided that where the whole of the warehoused goods or any part thereof are sold more than once before such clearance for home consumption or export, the transaction value of the last such transaction shall be the transaction value for the purposes of clause (a) or clause (b):

Provided further that in respect of warehoused goods which remain unsold, the value or the proportionate value, as the case may be, of such goods shall be determined in accordance with the provisions of sub-section (8).

Explanation.–– For the purposes of this sub-section, the expression "transaction value", in relation to warehoused goods, means the amount paid or payable as consideration for the sale of such goods.';

This is in line with GST provisions to collect IGST and Compensation Cess, when goods are sold in warehouse.

I. AMENDMENTS IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975

  AMENDMENTS
A

Amendments affecting rates of BCD [to be effective from 02.02.2018]* [Clause 101(a) of the Finance Bill, 2018]

Rate of Duty

S. No.

Heading, sub-heading tariff item

Commodity

From

To

   

Food Processing

   

1

 2009 21 00 to 2009 90 00

Fruit juices and vegetable juices including cranberry juice

30%

50%

    Perfumes and toiletry preparations    

2

3303

Perfumes and toilet waters

10%

20%

3

3304

Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), including sunscreen or suntan preparations; manicure or pedicure preparations

10%

20%

4

3305

Preparations for use on the hair

10%

20%

5

3306

Preparations for oral or dental hygiene, including denture fixative pastes and powders; yarn used to clean between the teeth (dental floss), in individual retail packages

10%

20%

6

3307

Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included, prepared room deodorizers, whether or not perfumed or having disinfectant properties

10%

20%

   

Automobile parts

   

7

4011 20 10

Truck and Bus radial tyres

10%

15%

8

8407, 8408, 8409, 8483 10 91, 8483 10 92,  8511, 8708, 8714 10

Specified parts/accessories of motor vehicles, motor cars, motor cycles

7.5%/10%

15%

 

   

Footwear

 

15%

6401, 6402,  6403, 6404, 6405

Footwear

10%

20%

10

6406

Parts of footwear Jewellery

10%

15%

11

7117

Imitation Jewellery

15%

20%

   

Electronics / Hardware

   
12

8517 12

Cellular mobile phones

15%

20%

13

3919 3920 3926 90 91,  3926 90 99,  4016 99 90,  7318 15 00, 7326 90 99,  8504, 8506, 8507,  8517 70 90, 8518,  8538 90 00,  8544 19, 8544 42, 8544 49

Specified parts and accessories including lithium ion battery of cellular mobile phones 7.5%/10%

15%

14

8517 62 90

Smart watches / wearable devices

10%

20%

15

8529 10 99
8529 90 90 

LCD/LED/OLED panels and other parts of LCD/LED/OLED TVs

7.5%/10%

15%

   

Furniture

   

16

9401

Seats and parts of seats [other than aircraft seats and their parts]

10%

20%

17

9403

Other furniture and parts

10%

20%

18

9404

Mattresses supports; articles of bedding and similar furnishing

10%

20%

19

9405

Lamps and lighting fitting, illuminated signs, illuminated name plates and the like [except solar lanterns or solar lamps]

10%

20%

   

Watches and Clocks

   

20

9101, 9102

Wrist watches, pocket watches and other watches, including stop watches

10%

20%

21

9103

Clocks with watch movements

10%

20%

22

9105

Other clocks, including alarm clocks

10%

20%

   

Toys and Games

   

23

9503

Tricycles, scooters, pedal cars and similar wheeled toys; dolls' carriages; dolls; other toys; puzzles of all kinds

10%

20%

24

9504

Video game consoles and machines, articles for funfair, table or parlor games and automatic bowling alley equipment

10%

20%

25

9505

Festive, carnival or other entertainment articles

10%

20%

26

9506 [except 9506 91]

Articles and equipment for sports or outdoor games, swimming pools and paddling pools [other than articles and equipment for general physical exercise, gymnastics or athletics]

10%

20%

27

9507

Fishing rods, fishing-hooks and other line fishing tackle; fish landing nets, butter fly nets and similar nets; decoy birds and similar hunting or shooting requisites

10%

20%

28

9508

Roundabouts, swings, shooting galleries and other fairground amusements; travelling circuses, traveling menageries and travelling theatres

10%

20%

   

Miscellaneous items

   

29

3406

Candles, tapers and the like

10%

25%

30

4823 90 90

Kites

10%

20%

31

9004 10

Sunglasses

10%

20%

32

9611

Date, sealing or numbering stamps, and the like

10%

20%

33

9613

Cigarette lighters and other lighters, whether or not mechanical or electrical, and parts thereof other than flints and wicks.

10%

20%

34

9616

Scent sprays and similar toilet sprays, and mounts and heads therefor; powder-puffs and pads for the application of cosmetic or toilet preparations.

10%

20%

B.

Amendments not affecting rates of duty [to be effective from 02.02.2018]* [Clause 101(a) of the Finance Bill, 2018]

 
1

8507 60 00

Tariff rate of BCD on Lithium-ion batteries

[The effective rate of import duty on Lithium-ion batteries [except those for cellular mobile phones will, however, remain unchanged at 10%.]

10%

20%

2

9018, 9019, 9020, 9021 9022

Tariff rate of BCD on medical devices

[The effective rates of BCD on such medical devices will, however, remain unchanged.]

7.5%

10%

C.

Technical amendment not affecting rates of duty [Clause 101(b) of the Finance Bill, 2018]

 
1  

Bifurcate the tariff item 0713 31 00 to create separate tariff items each for Moong Dal and Urad Dal.

 
2  

Omit tariff item 0904 22 12 and entries relating thereto and create new tariff item 1209 91 70, in relation to chilly seed of genus capsicum.

 
3  

Amend the tariff item 2917 39 20 to specify the isomers it covers.

 

*Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

II. AMENDMENT IN THE SECOND SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975

S. No.

Amendment

 

A

Amendments not affecting rates of Export duty

Rate of Duty

 

 

From

To

1.

To insert a new Note to specify Nil rate of duty in respect of all other goods which are not covered under column (2) of the Schedule. [Clause 102 (a) of the Finance Bill, 2018]

--

--

2

Electrodes of a kind used for furnaces [Clause 102 (b) of the Finance Bill, 2018]*

[Introduction of 20% Tariff rate of Export Duty on Electrodes of a kind used for furnaces  (8545 11 00). The effective rate of Export duty on such electrodes will, however, remain Nil]

--

20%

*Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

III. OTHER PROPOSALS INVOLVING CHANGES IN BASIC CUSTOMS DUTY RATES

S. No.

Heading, sub-heading tariff item

Commodity

From

To

   

Food processing

   

1

0801 31 00

Cashew nuts in shell [Raw cashew]

5%

2.5%

2

2009 11 00
2009 12 00
2009 19 00

Orange fruit juice

30%

35%

3 2009 81 00,
2009 90 00

Cranberry Juice

10%

50%

4

2106 90

Miscellaneous Food preparations (other than soya protein)

30%

50%

   

Textiles

   

5

5007

Silk Fabrics

10%

20%

   

Capital goods and Electronics

   
6

8504 90 90/3926 90 99

Printed Circuit Board Assembly (PCBA) of charger/adapter and moulded plastics of charger/adapter of cellular mobile phones

Nil

10%

7

Any Chapter

Inputs or parts for manufacture of:

(a) PCBA, or

(b) moulded plastics

of charger/adapter of cellular mobile phones of cellular mobile phones

Applicable Rate

Nil

8

8483 40 00, 8466 93 90, 8537 10 00

Ball screws, linear motion guides, CNC systems for manufacture of all types of CNC machine tools falling under headings 8456 to 8463

7.5%

2.5%

9

70

Solar tempered glass or solar tempered [anti-reflective coated] glass for manufacture of solar cells /panels/modules

5%

Nil

10

70

Preform of silica for use in the manufacture of telecommunication grade optical fibres or optical fibre cables

Nil

5%

 

11

8529/4016

12 specified parts for manufacture of LCD/LED TV panels

Nil

10%

   

Automobile and automobile parts

   

12

8702, 8703, 8704, 8711

CKD imports of motor vehicles, motor cars, motor cycles

10%

15%

13

8702, 8704

CBU imports of motor vehicles

20%

25%

   

Diamonds and Precious stones

   

14

71

Cut and polished colored gemstones;

2.5%

5%

15

71

Diamonds including lab grown diamonds-semi processed, half-cut or broken; non-industrial diamonds including lab-grown diamonds (other than rough diamonds), including cut and polished diamonds

2.5%

5%

   

Medical Devices

   

16

Any Chapter

Raw materials, parts or accessories for the manufacture of Cochlear Implants

2.5%

Nil

   

Rationalization in Customs duty rates

   
   

Edible oils of vegetable origin

   

17

1508, 1509, 1510,1512, 1513, 1515

Crude edible vegetable oils like Ground nut oil, Olive oil, Cotton seed oil, Safflower seed oil, Saffola oil, Coconut oil, Palm Kernel/Babassu oil, Linseed oil, Maize corn oil, Castor oil, Sesame oil, other fixed vegetable fats and oils.

12.5%

30%

18 1508, 1509, 1510,1512, 1513, 1515, 1516 20, 1517 10 21, 1517 90 10, 1518 00 11, 1518 00 21, 1518 00 31

Refined edible vegetable oils, like Ground nut oil, Olive oil, Cotton seed oil, Safflower seed oil, Saffolaoil, Coconut oil, Palm Kernel/Babassu oil, Linseed oil, Maize corn oil, Castor oil, Sesame oil, other fixed vegetable fats and oils, edible margarine of vegetable origin, Sal fat; specified goods of heading 1518

20%

35%

   

Refractory Items

   

19

6815 91 00

Other articles of stone containing magnesite, dolomite or chromite

10%

7.5%

20

6901

Bricks, blocks, tiles and other ceramic goods of siliceous fossil meals or of similar siliceous earths

10%

7.5%

21

6902

Refractory bricks, blocks, tiles and similar refractory ceramic constructional goods, other than those of siliceous fossil meals or similar siliceous earths

5%

7.5%

22

6903

Other refractory ceramic goods

5%

7.5%

IV. Levy of Social Welfare Surcharge, as a duty of Customs on imported goods [Clause 108 of the Finance Bill, 2018]:

S. No.

Heading, sub-heading tariff item

Description

From

To

1

Any chapter

Levy of Social Welfare Surcharge on imported goods to finance education, housing and social security [clause 108 of Finance Bill, 2018]

--

10% of aggregate duties of customs

2

Any chapter

Abolition of Education Cess and Secondary and Higher Education Cess on imported goods [clause 106 of Finance Bill, 2018]

3% of aggregate duties of customs [2% + 1%]

Nil

3

2710

Motor spirit commonly known as petrol and high speed diesel oil

--

3% of aggregate duties of customs

4

7106

Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured form, or in powder form

--

3% of aggregate duties of customs

5

7108

Gold (including gold plated with platinum), unwrought or in semi-manufactured form, or in powder form

--

3% of aggregate duties of customs

6 Any Chapter Specified goods hitherto exempt from Education Cess and Secondary and Higher Education Cess on imported goods

--

Nil

V. Levy of the Road and Infrastructure Cess [Clause 109 of the Finance Bill, 2018]

S. No.

Heading, sub-heading tariff item

Description

From

To

1

2710

Levy of Road and Infrastructure Cess on imported motor spirit commonly known as petrol and high speed diesel oil [clause 109 of Finance Bill, 2018]

--

Rs. 8 per litre

2

2710

Exemption from additional duty of customs leviable under section 3(1) of the Customs Tariff Act, 1975 in lieu of the proposed Road and Infrastructure cess on domestically produced motor spirit commonly known as petrol and high speed diesel oil

--

Nil

3

2710

Abolition of Additional Duty of Customs [Road Cess] on imported motor spirit commonly known as petrol and high speed diesel oil [Clause 106 of Finance Bill, 2018]

Rs. 6 per litre

Nil

4

Additional duty of customs under sections 3(1) of the Customs Tariff Act, 1975 in lieu of basic excise duty

   

 

2710

(i) Motor spirit commonly known as petrol

Rs. 6.48 per litre

Rs. 4.48 per litre

 

2710

(ii)  High speed diesel oil

Rs. 8.33 per litre

 

Rs. 6.33 per litre

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