Staying Updated

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Customs, FTP & WTO Newsletter

In the issue Customs

Foreign Trade Policy (FTP)

In the Issue

Customs

Notifications/Circulars

• Increase in concession from basic customs duty to specified goods when imported from Least Developed Countries (LDCs)

• All Industry Duty Drawback rates for 2012-13 effective from 10 October,

Foreign Trade Policy Notifications/Circulars

• 19 new Pre-Shipment Inspection Agencies notified for import certification

• Cost Accountants also allowed to certify documents wherever

Chartered Accountants were earlier allowed

October 2012 - Volume 15 Issue 07

Foreign Trade Policy (FTP) Anti-dumping duty

Contacts

2012-13 effective from 10 October, 2012 onwards

Case Law Valuation

• Imports made 1 year ago cannot be treated as contemporaneous goods Others

• Import of 6 year old car tyres not allowable in terms of Hazardous Waste (Management, Handling and Transboundary) Rules, 2008

• There cannot be identical or similar goods in case of import of old and used computers of assorted brands

allowed Case Law

• Customs duty payable where the DEPB scrip was purchased by the importer on the basis of fraudulent Telegraphic Release Advice

• Conversion of free shipping bills to DEPB shipping bills not allowed where goods were exported from port not specified in the exemption notification

Anti-dumping Duty

• Levy of anti-dumping duty extended on the import of Pre-sensitised Positive Offset Aluminium Plates/PS Plates, originating in or exported from Chine PR till 23 September, 2013

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In the issue Customs

Foreign Trade Policy (FTP) Anti-dumping duty Contacts

Customs

Notifications/Circulars

• The Central Government has introduced the All Industry Rates (AIR) of Duty Drawback 2012-13 with effect from 10 October, 2012. Some of the broad aspects in relation to the AIR of duty drawback are:

– The AIR has increased for most of the items covered in the Schedule prior to 1 October, 2011;

– The reduction in AIR is for items incorporated in Duty Drawback Schedule 2011-12 under transitory arrangement for Duty Entitlement

Maldives, Bangladesh, Myanmar and several African countries.

(Notification No. 56/2012 dated 1 October, 2012)

• The Central Government has issued following instructions to the customs authorities to curb fraud and duty evasion:

– allow clearance of goods only on the basis of computerised Out of Charge Orders (OCC);

– allow manual OCC only in rarest of rare and genuine cases; and

– carry out surprise checks at the out gate and verify authenticity of gate arrangement for Duty Entitlement

Pass Book (DEPB) Scheme;

– Separate duty drawback rate has been notified for motor cars with manual transmission and motor cars with automatic transmission, multi-speed bicycles, calcined bauzite, etc.

(Notification No. 92/2012-NT dated 4 October, 2012 and Circular No.

27/2012 dated 5 October, 2012)

• The Central Government has increased the concessional basic customs duty on specified goods imported from LDCs. These LDCs include countries such as Cambodia,

gate and verify authenticity of gate passes

(F. No. 450/24/2012 dated 29 October, 2012)

Case Law Valuation

• In Surbhit Impex P. Ltdv.CC (2012 (283) ELT 556), the Tribunal has held that imports made almost an year ago cannot be treated as contemporaneous imports of similar goods for re-

valuation of imported goods.

• In Bharat Industrial Corporationv.

CC (2012- TIOL-1335-CESTAT-MAD),

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In the issue Customs

Foreign Trade Policy (FTP) Anti-dumping duty Contacts

the Tribunal has held that re- valuation of imported goods cannot be rejected when it is based on value of similar goods after giving due adjustment on account of quality difference.

Others

• In CCv.Port Ware International LLC (2012 (284) ELT 50), the Tribunal has held that goods imported in the

absence of Importer-Exporter Code (IEC) are not liable for confiscation as importation without IEC does not amount to import of prohibited goods.

• The Tribunal, in CCv.Digital

Computers (2012 (284) ELT 123), has

• The Tribunal, in Steel Authority of India Ltd.v.CC (2012- TIOL-1303- CESTAT-MAD), held that the refund of extra duty paid cannot be denied where importer has produced

Chartered Accountant’s certificate and balance sheet indicating the

differential duty as ‘receivable’ from the customs authorities.

• In Lumix Export & Importv.CC

(2012- TIOL-1350-CESTAT-MAD), the Tribunal has held that demurrage and other incidental charges are required to be paid by the exporter for goods detained by the Customs Authorities.

• The Gujarat High Court, in Chaudhary Computers (2012 (284) ELT 123), has

held that there cannot be identical or similar goods in case of import of old and used computers of assorted brands as the year of manufacture, extent of use and condition of equipment cannot be compared with other imports

appearing in the National Import Database (NIDB).

• In Gupta Steelv.CC (2012 (193) ECR 0412), the Tribunal has held that where refund claim is finally sanctioned by the order of the Tribunal, the importer is entitled to interest from a period starting from three months after date of filing of refund application.

• The Gujarat High Court, in Chaudhary Industriesv.Union of India (2012- TIOL-811-HC-AHM), has held that there is no need to file Bill of Entry for goods confiscated by Customs and sold by auction in India as these goods do not fall in the definition of “imported goods”.

• In CCv.Govindam (2012- TIOL-822- HC-MAD), the Madras High Court has held that import of 6 year old car tyres cannot be allowed in terms of

Hazardous Waste (Management, Handling and Transboundary) Rules, 2008 and directed the re-export of the same as these will add to hazardous waste in India.

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In the issue Customs

Foreign Trade Policy (FTP)

Anti-dumping duty Contacts

Foreign Trade Policy (FTP) Notifications/Circulars

• The Central Government has allowed import of certain specified products falling under Chapter 25 & 68 from all EDI ports under India-Sri Lanka Free Trade Agreement (ISFTA). Earlier, these products were allowed to be imported through the port of Kolkata only.

(Notification No. 16 (RE-2012)/2009- 2014 dated 26 September, 2012)

• The Central Government has issued guidelines to be followed by banks and exporters in relation to issuance of Bank Realisation Certificate (BRC)

corrected ;

– Electronically issued BRC should reflect full value and should not contain values of commission, insurance and freight.

(Circular No. 6 (RE-2012)/2009-2014 dated 10 October, 2012)

• The Central Government has clarified that duty credit scrips issued under Chapter 3 of FTP up to 26 July, 2012 will continue to have a validity for 24 months and duty credit scrips issued after 26 July, 2012 will have a validity of 18 months .

(Circular No. 7 (RE-2012)/2009-2014 dated 25 October, 2012)

Bank Realisation Certificate (BRC) electronically which, among other, include the following:

– There is no need to issue physical copy of BRC by banks for the purpose of DGFT;

– Bank will convert BRC issued manually during 1 April, 2012 to 16 August, 2012 in the digital (XML) format and upload these onto the DGFT server;

– Exporter should verify the shipping bill number, date and port code in case of electronically issued BRC as reported by banks. In case of discrepancy, the exporters need to approach the bank to get it

dated 25 October, 2012)

• The Central Government has amended the application Form ANF 2D

prescribed for Export License for restricted items.

(Public Notice No. 18 (RE-2012)/2009- 2014 dated 28 September, 2012)

• The Central Government has notified 19 new Pre-Shipment Inspection Agencies for the purpose of

certification in relation to imported goods under the FTP.

(Public Notice No. 20 (RE-2012)/2009- 2014 dated 1 October, 2012 and Public Notice No. 27 (RE-2012)/2009-2014 dated 19 October, 2012)

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• The Central Government has incorporated certain additional declarations/undertakings to be furnished by the applicants under specified schemes of FTP in relation to values of commission, insurance and freight.

(Public Notice No. 21 (RE-2012)/

2009-2014 dated 9 October, 2012)

• The Central Government has also allowed the “Cost Accountants” to certify documents under the FTP and procedures wherever earlier only Chartered Accountants were allowed to certify.

FTP and procedures.

(Public Notice No. 25 (RE-2012)/

2009-2014 dated 19 October, 2012) Case Law

• The Kerala High Court, in Neptune Trade Links Pvt. Ltd.v.CC (2012 (284) ELT 29), has held that customs duty is payable where the DEPB scrip was purchased by the importer on the basis of fraudulent Telegraphic Release Advice (TRA) without verifying the genuineness of the same.

• The Gujarat High Court, in Adani Wilmer Ltd.v.UOI (2012- TIOL-832- (Public Notice No. 22 (RE-2012)/

2009-2014 dated 11 October, 2012)

• The Central Government has clarified that submission of physical copy of Registration- cum-Membership Certificate (RCMC) by the exporters for claiming any benefit or concession under FTP will not be required from 1 December, 2012 onwards. Further, the digitally signed RCMC data of the exporters shall be uploaded on DGFT website by the Export Promotion Councils, Commodity Boards, Development Authorities and other competent authorities as prescribed in

Wilmer Ltd.v.UOI (2012- TIOL-832- HC-AHM-CUS), has held that

education cess is to be levied only on such component of the customs duties which has not been exempted by customs notification granting importation of goods under DEPB scheme.

• The Tribunal, in Global Food Exports v.CC (2012 (284) ELT 113), has held that the conversion of free shipping bills to DEPB shipping bills is not allowed in case where the goods were exported from a port that was not specified in the exemption notification for export under DEPB shipping bills.

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• In a revision petition filed before the Department of Revenue in Rohit Poly Product Pvt. Ltd. (2012 (284) ELT 137), the Government of India has held that substantial benefits cannot be denied merely on the ground that the bill of export was not filed by a Domestic Tariff Area (DTA) unit at the time of clearance of goods to Special Economic Zone (SEZ) unit where the clearance of goods and its acceptance by SEZ unit is not in dispute.

• The Tribunal, in Dow Agrosciences India Pvt. Ltd.v.CC (2012 (283) ELT 524), has held that no benefit of 524), has held that no benefit of credit of duty available under DEPB scrip should be passed on to the transferee where the DEPB scrip was obtained by the transferor on the basis of forged documents.

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Foreign Trade Policy (FTP) Anti-dumping duty Contacts

Anti-dumpingDuty Notifications/Circulars

• The Central Government has extended the levy of anti-dumping duty on the import of Pre-sensitised Positive Offset Aluminium Plates/PS Plates falling under Chapter 37, 76 and 84,

originating in or exported from China PR till 23 September, 2013.

(Customs Notification (ADD) No.

44/2012 dated 25 September, 2012)

• The Central Government has extended anti-dumping duty on imports of Phosphoric acid, technical or food grade (including industrial grade)

• The Central Government has imposed definitive anti-dumping duty on the import of Melamine falling under Chapter 29, originating in or exported from European Union, Iran, Indonesia and Japan for a period of five years effective from 8 October, 2012.

48/2012 dated 8 October, 2012)

grade (including industrial grade) falling under CTH 2809.20 and originating in or exported from China PR till 12 September, 2013.

45/2012 dated 25 September, 2012)

• The Central Government has imposed definitive anti-dumping duty on the import of specified Cold Rolled Flat Products of Stainless Steel falling under Chapter 72, originating in or exported from European Union, Korea RP and USA for a period of five years effective from 4 October, 2012.

46/2012 dated 4 October, 2012)

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Contacts Delhi

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

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

Somnath Ballav

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

Pramod Banthia Ph: +91(80) 4079 6000

Hyderabad

Pramod Banthia /Ananthanarayanan S Ph: +91(40) 6624 6394

Chennai B Sriram

Ph: +91(44) 4228 5000 Pune

Nitin Vijaivergia Ph: +91(20) 4100 4444 Ahmedabad

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

Foreign Trade Policy (FTP) Anti-dumping duty Contacts

This publication does not constitute professional advice. The information in this publication has been obtained or derived from sources believed by PricewaterhouseCoopers Private Limited (PwCPL) to be reliable but PwCPL does not represent that this information is accurate or complete. Any opinions or estimates contained in this publication represent the judgment of PwCPL at this time and are subject to change without notice. Readers of this publication are advised to seek their own professional advice before taking any course of action or decision, for which they are entirely responsible, based on the contents of this publication. PwCPL neither accepts or assumes any responsibility or liability to any reader of this publication in respect of the information contained within it or for any decisions readers may take or decide not to or fail to take.

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