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Customs, FTP & WTO Newsletter

In the issue

Customs

Foreign Trade Policy (FTP)

In the Issue

Customs

Notifications/Circulars

• Functional Control of special valuation branch (SVB) to be transferred to the Directorate General of Valuation (DGV) from 1 January, 2013 onwards

• 6 new Pre-shipment Inspection Agencies notified for import certification

Case Law

• Additional duty is not to be imposed on high speed diesel oil captively consumed after being warehoused in export oriented unit

• Duty cannot be demanded if December 2012 - Volume 15 Issue 09

Foreign Trade Policy (FTP) Anti-dumping duty

Contacts

Case Law Valuation

• Customs duty payable on invoice value charged even if lesser quantity of goods received by the importer

• Technical know-how fee is not includible in the value of imported goods in case it is not a pre-

condition for sale Others

• Adjudicating Authority has to supply all the documents to be relied upon to quantify short-levy of duty

Foreign Trade Policy Notifications/Circulars

• Duty cannot be demanded if shipping bills were filed

inadvertently as drawback shipping bills instead of duty exemption entitled certificate (DEEC) shipping bills

Anti-dumping Duty

• Anti-dumping duty imposed on import of Digital Offset Printing Plates, originating in or exported from China

Foreign Trade Agreements

• Customs duty benefit extended on goods imported under India-

Singapore comprehensive economic cooperation agreement (CECA)

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In the issue Customs

Contacts

Customs

Notifications/Circulars

• The Central Government has changed the functional control of SVB of

Customs from the Commissioners of Customs to the DGV effective from 1 January, 2013 onwards.

Some important changes in the functioning of SVBs are as under:

− The existing sections with the staff of SVBs in New Delhi, Mumbai, Chennai, Kolkata and Bangalore will now function under supervisory control of DGV;

− These section(s) will exclusively

that have to be given due consideration by the Commissioner for review or acceptance of SVB orders.

(Circular No. 29/2012 dated 7 December, 2012)

• The Central Government has allowed exemption of customs duties on re- import of goods manufactured in India and parts of such goods whether

Indian or foreign manufactured from the whole of customs duty under specified conditions where such goods are re-imported from Bhutan within 10 years from the date of exportation subject to fulfilment of other

conditions. Earlier, the period of re-

− These section(s) will exclusively handle SVB investigations and will not be given any other

responsibilities;

− The DGV shall monitor the

pendency of SVB matters, approve the initiation of SVB inquiries and supervise the investigations;

Further, the work relating to review, appeal and other legal matters arising out of cases investigated and orders passed by officers in SVBs shall continue to be handled by jurisdictional commissioner of customs. However, the DGV will provide its views on the SVB orders

conditions. Earlier, the period of re- import from Bhutan for availability of the exemption was three years for reconditioning or repair.

(Notification No. 60/2012 dated 6 December, 2012)

• The Central Government has imposed basic customs duty at 15% on import of milk products covered under Customs Tariff Heading (CTH) 0402.10 or 0402.21.00 subject to specified conditions.

(Notification No. 59/2012 dated 21 November, 2012)

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Contacts

• The Central Government has added the port of Katargam, Chauryasi in Surat, Gujarat for unloading of imported goods and loading of exported goods.

(Notification No. 107/2012 dated 4 December, 2012)

Case Law Valuation

• In CC v.Gujarat Ambuja Cements Ltd.

(2012- TIOL-1805-Tribunal-AHM), the Tribunal held that Customs duties will be payable on invoice value

charged at the time of importation of goods even if the importer has

of duty in accordance with the principles of natural justice.

• The High Court, in Auto Creatersv.

Union of India (2012-TIOL-989-HC- DEL), held that where no notice is issued on expiration of seizure period of six months or one year in case of extension, the goods have to be released unconditionally in terms of the provisions of the Customs Act, 1962.

• In Akansha Syntex Pvt. Ltd. v.

Commissioner of Customs (2012- TIOL-1697-Tribunal-MUM), the Tribunal held that appeal against an order passed by the Commissioner of goods even if the importer has

received lesser quantity of goods.

• The Tribunal, in CC v.Windia Power Ltd. (2012-TIOL-888-Tribunal- MUM), held that fees paid for technical know-how from related parties is not includible in the value of imported goods in case the same is not a pre-condition of sale of imported goods.

Others

• In Kemtech International Pvt. Ltd. v.

CC (2012-TIOL-113-SC-CUS), the Supreme Court of India held that the adjudicating authority has to supply all the documents that it proposes to rely on for quantification of short-levy

order passed by the Commissioner of Customs in respect of provisional release of seized goods pending

adjudication under section 110A of the Customs Act, 1962 is not maintainable before the Tribunal as such orders passed by the Commissioner of Customs is not in capacity of adjudicating authority.

• In Posco India Delhi Steel Processing Ltd. v.CC (2012-TIOL-1769-Tribunal- AHM), the Tribunal held that refund of special additional duty of customs (SAD) cannot be denied when the imported goods are sold on payment of sales tax after processing but the

process undertaken on such goods does not amount to manufacture.

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Contacts

• In Atlantic Shipping Pvt. Ltd. v.CC (2012-TIOL-1804-Tribunal-DEL), the Tribunal held that the bar of unjust enrichment is applicable on refund of penalty levied on importer which the importer has collected from its customers.

• The Tribunal in CC v.Scientific Instruments Co. Ltd. [2012] 286 ELT 261(Tri. - Chny), held that refunds arising as a consequence of finalization of provisional assessment made before July 2006 is allowable without the test of unjust enrichment as the principle of unjust enrichment was not

attracted.

after expiry of limitation period for filing of appeal.

• In Medopharmv. Joint Secretary to the Government of India [2012] 194 ECR 187 (Mad), the Madras High Court held that the drawback claim for

‘as such’ re-export of imported goods is liable to be rejected if the shipping bill is not filed in terms of Section 74 of the Customs Act, 1962 in the absence of which, the customs authorities cannot verify the eligibility and conditions of drawback.

• The Tribunal in CCE v.Bharat Cereals Pvt. Ltd. [2012] 194 ECR 263(Tri. - Del), held that the Tribunal cannot condone delay of Committee of Chief Commissioners in issuing review order

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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 amended the Form ANF 5B used as application for redemption of export promotion capital goods (EPCG) authorisation in order to make it more specific and user friendly.

(Public Notice No. 32 (RE-2012)/2009- 2014 dated 27 November, 2012)

• The Central Government has

authorised two new agencies for the purpose of issuing certificate of origin (non-preferential) in the states of Rajasthan and Tamil Nadu.

(Public Notice No. 37 (RE-2012)

manufacture and sale of goods under other advance license since the

erstwhile notification governing

imports under advance license permits the same.

• The Tribunal, in Rishabh Instruments Pvt. Ltd. v. CCE (2012-TIOL-1727- Tribunal-MUM), held that EOU unit is entitled to clear all the goods

manufactured by it to domestic tariff area (DTA) to the extent permitted by the free trade policy (FTP) at a

concessional rate of duty without restricting the clearance of goods to specific items.

• The Tribunal, in Aluminium Industries (Public Notice No. 37 (RE-2012)

/2009-14 dated 17 December, 2012)

• The Central Government has notified six new Pre-shipment Inspection Agencies for the purpose of

certification in relation to imported goods under the FTP.

(Public Notice No. 38 (RE-2012)/2009- 2014 dated 18 December, 2012)

Case Law

• The Bombay High Court, in CC v.

Hindustan Unilever [2012] 285 ELT 500 (Bom), held that that customs duty cannot be demanded on the material imported in excess under advance license which has been used for

• The Tribunal, in Aluminium Industries Ltd. v.CC (2012-TIOL-1728-Tribunal- BANG), held that duty cannot be demanded from the exporter when the export obligation discharge certificate (EODC) was not obtained as shipping bills were filed inadvertently as

drawback shipping bills instead of DEEC shipping bills by the exporter.

• In Kumar’s Cotex Ltd. v.CC (2012- TIOL-1754-Tribunal-BANG), the Tribunal held that additional duty of customs cannot be levied on the capital goods cleared as scrap from EOU to DTA since these duties were not leviable on the date of importation of such capital goods.

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Foreign Trade Policy (FTP)

Anti-dumping duty Contacts

• The Tribunal in, CCE v.STI India Ltd.

(2012-TIOL-1867-Tribunal-DEL), held that additional duty levied under section 116 of the Finance Act, 1999 cannot be imposed on high speed diesel oil captively consumed in the generation of power after being

warehoused in EOU post-importation into India as using warehoused goods does not amount to removal of goods.

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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 Caustic Soda falling under CTH 2815.11 and 2815.12, originating in or exported from Saudi Arabia, Iran, Japan and USA. This duty has been extended for a period of five years effective from 26 November, 2012.

(Customs Notification (ADD) No.

49/2012 dated 26 November, 2012)

• The Central Government has extended the levy of anti-dumping duty on the import of ceftriaxone sodium sterile

• The Central Government has extended the levy of anti-dumping duty on the import of codium hydrosulphite falling under CTH 2831 and 2832, originating in or exported from China. This duty has been imposed for a period of five years effective from 14 December, 2012.

55/2012 dated 14 December, 2012)

• The Central Government has modified the amount for levy of anti-dumping duty on the import of cable ties falling under CTH 3926.90, originating in or exported from China till 30 October, 2013.

import of ceftriaxone sodium sterile falling under CTH 2941.90.90,

originating in or exported from China till 28 November, 2013.

50/2012 dated 29 November, 2012)

• The Central Government has imposed antidumping duty on import of Digital Offset Printing Plates, originating in or exported from China. This duty has been imposed for a period of five years effective from 4 June, 2012.

51/2012 dated 29 November, 2012)

2013.

56/2012 dated 14 December, 2012) Foreign Trade Agreements (FTA) Notifications/Circulars

• The Central Government has extended the benefit of customs duty exemption available on import of goods into India under India-Singapore CECA.

(Customs Notifications No. 61/2012 dated 18 December, 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

Contacts

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