Staying Updated

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In the issue Customs

Foreign trade policy (FTP)

Customs, FTP and WTO newsletter

In the issue Customs

Notifications and circulars

• The Central Government has notified revised AIR of Duty Drawback for specified products effective from 25 January, 2014

• SAD is payable on stock transfer

entry number in the sale invoice

• Interest cannot be levied for

provisional assessment of duty prior to 13 July, 2006

Foreign Trade Policy

• Scrips issued under SHIS, SFIS and AIIS cannot be used for payment of January 2014: Volume 16 Issue 10

Anti-dumping duty Contacts

• SAD is payable on stock transfer from SEZ/FTWZ unit to DTA Case law

Classification

• Classification of goods cannot be determined on the basis of

advertising or marketing techniques Valuation

• Transaction value of imported goods cannot be rejected when there are contemporaneous imports at comparable prices

Others

• Refund claim in respect of SAD cannot be rejected merely on the ground of non-indication of bill of

AIIS cannot be used for payment of Custom Duty in case of shortfall in export obligation in AA or DFIA

• New policy condition inserted in chapter 87 of ITC (HS) for facilitating import of customised cars/ motorcycles and parts thereof required for race events

Case law

• Duty drawback is not allowable if identity of imported and export goods cannot be established Anti-dumping duty

• Anti-dumping duty enhanced on import of DVD of all kinds, originating in, or exported from Vietnam from 31 December, 2013

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In the issue Customs

Foreign trade policy (FTP) Anti-dumping duty Contacts

Customs

• The Central Government has notified revised All Industry Rates (AIR) of Duty Drawback for specified products

effective from 25 January, 2014. Some products for which the drawback rates have changed are specified fibres, tractors, commercial vehicles, motor cars and parts thereof.

(Notification No. 05/2014-Customs (NT) dated 21 January, 2014)

• The Central Government has clarified that Special Additional Duty of Customs (SAD) is payable on clearances from Special Economic Zone (SEZ)/ Free

Case law Classification

• The Mumbai Tribunal, in Patwa Photo StudiovCC (2013-TIOL-1933-CESTAT- MUM), held that printer-processor with standard accessories capable of

developing films and thereafter printing the photographs is classifiable under Custom Tariff Heading (CTH) 9010 that covers apparatus for photographic film, as classification of goods is to be

determined on the basis of technical function of the product.

• In ICICI BankvCC (2013 (200) ECR 0473), the Chennai Tribunal held that classification of goods cannot be determined on the basis of advertising Special Economic Zone (SEZ)/ Free

Trade and Warehousing Zone (FTWZ) unit to Domestic Tariff Area (DTA) in the nature of stock transfer as no sales tax/ Value Added Tax (VAT) is leviable on such transactions. Previously, the Unit Approval Committee of Noida SEZ had, in its meeting and minutes dated 1 April, 2013, given a view that SAD is exempt on stock transfer from SEZ/FTWZ, subject to fulfilment of conditions.

(Circular No. 30/2013-Customs dated 30 December, 2013)

determined on the basis of advertising or marketing techniques, as the classification is determined based on the principal function of the product in terms of General Rules of Interpretation of Import Tariff.

Valuation

• The Bombay High Court, in Cargotec India Pvt LtdvUoI & Anr (2013-TIOL- 1102-HC-MUM), held that Extra Duty Deposit (EDD) had to be reduced from 5% to 1% if requisite information had been submitted by the importer but the application was pending action by the customs authorities.

• In Sempertrans Nirlon Pvt LtdvCC (2014 (299) ELT 363), the Mumbai

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In the issue Customs

Foreign trade policy (FTP) Anti-dumping duty Contacts

Tribunal held that where amount was paid for royalty, technical assistance and trademark in respect of goods to be manufactured in India which are distinct from imported goods, then payment of such fees could not be added to the value of imports from related parties as these were separate transactions.

• The Ahmedabad Tribunal, in Shri Savaram D Patel & OrsvCC (2014- TIOL-22-CESTAT-AHM), held that where the importer produced evidence of contemporaneous imports at

comparable prices, the transaction value of the imported goods could not be rejected in the absence of any of the legally permissible grounds for re-

not mentioning of bill of entry number on the sale invoice as there was no such condition in the relevant notification.

• In SKS MillsvCC (2013-TIOL-12- CESTAT-MAD), the Chennai Tribunal held that the refund of excess duty paid during transfer of capital goods from Export Oriented Unit (EOU) scheme to Export Promotion Capital Goods (EPCG) Scheme could be made within the

stipulated period from the date of payment of duty, and not from the date of ‘No Objection Certificate’ (NOC) issued by the excise authorities.

• The Gujarat High Court, in CCvPosco India Delhi Steel Processing Centre P Ltd (2013 (299) ELT 263), held that the determination of valuation under the

erstwhile Customs Valuation

(Determination of Price of Imported Goods) Rules, 1988.

Others

• In CCvKalra Exim Pvt Ltd (2013-TIOL- 1896-CESTAT-MAD), the Chennai Tribunal held that goods could be confiscated in terms of the Customs Act, 1962 for non-rectifiable defects under the Food Safety and Standards Act, 2006.

• The Chennai Tribunal, in CCvShri Ram Impex India Pvt Ltd (2014-TIOL-01- CESTAT-MAD), held that refund claim in respect of SAD could not be denied for

Ltd (2013 (299) ELT 263), held that the importer was entitled to SAD for import of HR/ CR coils that were sold in India after cutting vertically, as this process did not amount to manufacture and thus fulfilled the condition of the relevant exemption notification that goods were sold ‘as such’.

• The Chennai Tribunal, in Sterlite Industries (India) LtdvCC (2013 (200) ECR 0501), held that interest could not be levied for provisional assessment of duty prior to 13 July, 2006 as there was no provision for payment of interest in the relevant period.

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In the issue Customs

Foreign trade policy (FTP)

Foreign trade policy

• The Central Government has added a new policy condition to chapter 87 of ITC (HS) for facilitating the import of customised cars/motorcycles and parts required for racing events.

(Notification No. 65 (RE-2013)/2009- 14 dated 8 January, 2014)

• The Central Government has provided that scrips issued under Status Holders Incentive Scrip (SHIS), Served From India Scheme (SFIS) and Agri- Infrastructure Incentive Scrip (AIIS) cannot be used for payment of custom

can be fitted and/ or be used on

wheeled vehicles and the conditions for reciprocal recognition of approvals granted on the basis of these prescriptions”. Further, Central

Government has provided the web link containing list of international

accredited agencies for issuance of the certificate as notified by Union Nations Economic and Social Council

(UNESCO).

(Policy Circular No. 12 (RE-2013)/

2009-14 dated 15 January, 2014)

• The Central Government has delegated power to the regional authorities for extension of time up to a maximum of cannot be used for payment of custom

duty in case of shortfall in export obligation in Advance Authorisation (AA) or Duty Free Import Authorisation (DFIA) Schemes.

(Notification No. 64 (RE-2013)/2009- 14 dated 6 January, 2014)

• The Central Government has clarified that the Type Approval certificates as required under policy conditions of chapter 87 of ITC (HS), 2012 may be accepted from the countries those are contracting parties to the 1958

Agreement, formally titled “Agreement concerning the adoption of uniform technical prescriptions for wheeled vehicles, equipment and parts which

extension of time up to a maximum of 18 months for installation of Capital Goods imported under EPCG scheme.

(Policy Notice No. 48 (RE-2013)/2009- 14 dated 10 January, 2014)

• The Central Government has introduced a procedure for processing claims in Electronic Data Interchange (EDI) system in respect of realisation of export proceeds through insurance agency.

• The Central Government has prescribed the following procedure for claiming of benefits in respect of third party exports under EDI system:

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− The process to be initiated by the first party, who will link shipping bills and Bank Realisation Certificate (BRCs) to repository.

− If the first party chooses not to claim the benefit for a particular shipping bill item(s), it may authorise a third party to claim benefit for such shipping bill item(s).

− After such authorisation by first party, third party will be able to utilise the shipping bill item(s) in its application.

Case law

the Court could not interfere with an ongoing DRI investigation. The defects, if any, in the enquiry conducted by DRI could be challenged as provided in law.

• In Reliance Gas Transportation Infrastructure LtdvCC (2014 (299) ELT 212), the Mumbai Tribunal held that refund of SAD paid at the time of exit from EPCG scheme after use of goods for a particular period would not be available even if such goods were sold on payment of applicable

VAT/Sales tax as these goods would not satisfy the condition of the relevant exemption notification that goods be sold ‘as such’.

• The Chennai Tribunal, in Torrent Case law

• In Patwa Photo StudiovCC (2014- TIOL-1933-CESTAT-MUM), the Mumbai Tribunal held that used and reconditioned Fuji Frontier Print Processor used for developing photo films as well as digital printing were not covered under the provisions of

Hazardous Wastes (Management Handling And Transboundary

Movement) Rules, 2008 as the goods were not waste and scrap of electrical or electronic assemblies.

• The Karnataka High Court, in Directorate of Revenue Intelligence (DRI)vHindustan Granites (2013- TIOL-1084-HC-KAR-CUS), held that

• The Chennai Tribunal, in Torrent Pharmaceuticals LtdvCC (2014 (298) ELT 554), held that duty drawback was not allowable if identity of the imported and export goods could not be

established.

Foreign trade Agreement (FTA)

• The Central Government has increased the benefit of customs duty exemption on specified goods imported from 1 January, 2014 onwards under the following FTAs:

− India-ASEAN FTA

− India-Korea Comprehensive Economic Partnership Agreement (CEPA)

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− India-Malaysia Comprehensive Economic Cooperation Agreement (CECA)

− India-Japan CEPA

(Customs Notification No. 54/2013, 55/2013, 56/2013 and 57/2013, all dated 31 December, 2013)

• The Central Government has increased the benefit of customs duty exemption on specified goods imported from 16 December, 2013 onwards for India- Singapore CECA.

(Customs Notification No. 50/2013 dated 16 December, 2013)

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Foreign trade policy (FTP) Anti-dumping duty Contacts

Anti-dumping duty Notifications

• The Central Government has continued levy of anti-dumping duty on imports of Nonyl Phenol falling under CTH 2907 13 00, originating in, or exported from Chinese Taipei for a further period of five years from 16 January, 2014.

(Customs (ADD) Notification No.

05/2014 dated 16 January, 2014)

• The Central Government has extended the levy of anti-dumping duty on Caustic Soda falling under chapter 28, originating in, or exported from, Korea PR till 25 December, 2014.

• The Central Government has enhanced the amount of anti-dumping duty on imports of Recordable Digital Versatile Disc (DVD) of all kinds, falling under CTH 8523, originating in, or exported from Vietnam from 31 December, 2013.

34/2013 dated 31 December, 2013)

• The Central Government has continued anti-dumping duty on imports of Phosphoric Acid-Technical Grade and Food Grade (including Industrial Grade), falling under CTH 2809 20, originating in, or exported from, Peoples’ Republic of China for a period of five years from 31 December, 2013.

04/2014 dated 16 January, 2014)

• The Central Government has extended the levy of anti-dumping duty on Caustic Soda, falling under chapter 28,

originating in, or exported from, Peoples’

Republic of China till 25 December, 2014.

03/2014 dated 16 January, 2014)

• The Central Government has extended the levy of anti-dumping duty on Compact Fluorescent Lamps, falling under CTH 8539, originating in, or exported from, China PR till 20 November, 2014.

02/2014 dated 3 January, 2014)

33/2013 dated 31 December, 2013)

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Foreign trade policy (FTP) Anti-dumping duty Contacts

Contacts Delhi

Vivek Mishra/R Muralidharan Ph: +91 (124) 3306000 Mumbai

Dharmesh Panchal/S Satish Ph: +91 (22) 6689 1000 Kolkata

Gopal Agarwal

Ph: +91 (33) 2357 9100/4404 6000 Bangalore

Pramod Banthia

Ph: +91 (80) 4079 6000

Hyderabad

Ananthanarayanan S Ph: +91 (40) 4424 6363 Chennai

Harisudhan M

Ph: +91 (44) 4228 5000 Pune

Nitin Vijaivergia

Ph: +91 (20) 4100 4444 Ahmedabad

Dharmesh Panchal/Niren Shethia Ph: +91 (22) 6689 1000

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