Staying Updated

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Customs, FTP & WTO Newsletter

In the issue Customs

Foreign Trade Policy (FTP) Antidumping duty

Contacts

In the Issue

Customs

Notifications/Circulars

• Parallel imports allowed in terms of Patents Act and Trade Mark Act.

• Conditions for refund of SAD on pre- packaged imported goods intended for sale and other specified goods modified.

Case Law Classification

• 3D computer mouse is classifiable under tariff heading 8471 60 as input device.

Valuation

• Transaction value of the imported goods cannot be rejected on the basis of price list.

Others

• Refund of SAD cannot be denied where imported goods are given to consumers on right to use basis.

Foreign Trade Policy News

13)” tabled before the Parliament.

• Spares required for capital goods imported from SEZ can be imported under EPCG Scheme.

Case Law

• Extended period of limitation cannot be invoked against importer when fraud is committed by original license holder.

• Import of second hand multifunction machine having photocopy as its

primary functions allowed only against a license.

Foreign Trade Agreements

• Customs duty benefit extended on import of goods under India Japan CEPA.

Anti-dumping Duty Notification

• Levy of antidumping duty extended on the import of Dry Cell Batteries

originating in or exported from China.

May 2012 - Volume 15 Issue 02

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In the issue Customs

Contacts

Customs

• The Central Government has clarified that import of original/genuine products which are sold/acquired legally abroad and imported by persons in India, other than intellectual property right (IPR) holder without permission of the IPR holder (commonly known as ‘parallel imports’ ) are allowed in terms of following Acts:

− Patents Act, 1970; and

− Trade Marks Act, 1999.

However, parallel imports are not allowed under the Designs Act, 2000.

(Circular No. 13/2012 dated 08/05/2012)

• The Central Government has amended the conditions for availing exemption from Special Additional Duty of Customs (SAD) on import amongst other of mobile handsets, pre-packaged goods intended for retail sale. The importers of these goods are required to comply with the following conditions on or after 01/06/2012:

− To file declaration of the State where the goods are intended to be taken immediately after

importation whether for sale or distribution on stock transfer basis; and

− Submit Value Added Tax (VAT)/Sales Tax/Central Sales Tax registration number, as the case may be.

(Notification No. 29/2012 dated 30/04/2012 and Notification No.

32/2012 dated 08/05/2012 )

• The Central Government has withdrawn exemption of Additional Duty of

Customs in lieu of excise and SAD on import of specified goods required for defense or internal security purpose.

(Notification No. 30/2012 dated 08/05/2012)

• The Central Government has added following ports for unloading of

imported goods and loading of exported goods:

- Kannur, Kerala

- Wardha, Maharashtra; and - Kalinganagar, Orissa.

(Notification Nos. 32/2012 - NT dated 11/04/2012 , 34/2012 - NT dated 20/04/2012 and 35/2012 - NT dated 23/04/2012)

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Contacts

Case Law Classification

• In Adnani Wilmar Limited Vs CC (2012 -TIOL- 483), the Tribunal has held that the burden of proof for re-classification of the imported goods under different Customs Tariff Heading (CTH) lies on the Customs Authorities.

• The Tribunal, in CC Vs Computer Infinite (2012 (278) ELT 623), has held that 3D computer mouse is classifiable under CTH 8471. 60 as input device.

Merely because the mouse is costlier and bigger in size than a typical computer mouse it would not fall under CTH 8479 which is a residual entry for mechanical appliances.

Valuation

• The Tribunal, in Deepak Bansal Vs. CC (2012 (279) ELT 66), has held that the transaction value cannot be rejected by the Customs Authorities in the absence of any contemporaneous imports at higher value and proof of payment over and above the transaction value.

• In Jaquar Mercantile Vs CC (2012 (279) ELT 65), the Tribunal has held that transaction value of the imported goods cannot be rejected on the basis of retail sale price in the exporting country when

contemporaneous imports of the value equivalent to transaction value is available.

Others

• The Tribunal, in CC Vs National Research Centre on Bio Plant

Technology (2012 -TIOL- 488), has held that refund cannot be denied for non challenging the assessment, where excess duty was paid on the basis of excessive quantity of goods prior to delivery of import manifest which was found lower on actual examination of goods by Customs Authorities.

• In Maize Products Vs CC (2012-TIOL- 473), the Tribunal has held that refund claim of customs duty cannot be rejected on the grounds which have not been alleged in the Show Cause Notice issued for rejection of such refund claim.

• The Tribunal, in CC Vs Reliance

Communications Infrastructure Limited (2012- TIOL- 499), has held that the refund of SAD cannot be denied where the imported goods are given to

consumers on ‘right to use’ basis since transfer of right to use is covered under definition of sale provided under various Sales Tax/VAT Acts.

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Contacts

• In Midi Extrusions Limited Vs CC (2012 -TIOL- 536), the Tribunal has held that the bar of unjust enrichment is not applicable when imported goods are capitively consumed by the importer.

• The Delhi High Court, in Nitesh Kumar Kedia Vs CC (2012-TIOL-331) has held that the order passed by the Tribunal must be a speaking order as this is the mandate of the law.

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In the issue Customs

Foreign Trade Policy (FTP) Antidumping duty

Contacts

Foreign Trade Policy (FTP) News

• The Parliamentary Standing Committee on Commerce has tabled an report on

“Demands for Grants (2012-13)” before both the houses of Parliament. Following are the major recommendations outlined in the report:

– 16 new incentive schemes to be added to boost certain specified sectors;

– Electronic Data Interchange (EDI) connectivity to be accorded priority;

– Assistance to States for

development of infrastructure; and – To overcome challenges in relation

to SEZ Scheme.

(www. rajyasabha.nic.in) Notifications/Circulars

• The Central Government has extended the on-line data exchange facility

between the Customs Authorities at ICD Concor, Tondiarpet, Chennai and Regional Director General of Foreign Trade (DGFT) for following Schemes:

- Advance Authorization Scheme;

- Duty Free Import Authorization (DFIA); and

- Export Promotion of Capital Goods (EPCG) Scheme.

(Policy Circular No. 60 (RE-2010)/

2009-14 dated 30/04/2012)

• The Central Government has clarified that capital goods sourced from SEZ will be treated as ‘imported goods’ and hence the benefit of concessional customs duty under Export Promotion Capital Goods (EPCG) can be availed on import of spares of such capital goods.

2009-14 dated 18/05/2012)

• The Central Government has notified port codes for 58 SEZs located in the States of Haryana, Rajasthan and Uttar Pradesh which are required to be used in the applications to be filed with the DGFT.

2009-14 dated 16/05/2012) Case Law

• The Gujarat High Court, in CC Vs Sarla Performance Fibres Ltd (2012-TIOL- 359), has held that appeal against the Tribunal order related to third time levy of education cess on removal of goods from Export Oriented Unit to Domestic Tariff Area lies with the Supreme Court since this matter relates to ‘rate of duty

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Foreign Trade Policy (FTP) Antidumping duty

Contacts

• The Tribunal, in Pee Jay International Vs CC (2012-TIOL-532), has held that the extended period of limitation cannot be invoked against the importer availing benefit under the Duty Entitlement Pass Book (DEPB) Scheme when the DEPB script was obtained by the original license holder based on fraud or misrepresentation, but the importer obtained the DEPB license with a bona fide belief in its genuineness.

• In Unitech Enterprises Vs CC (2012 (279) ELT 236), the Tribunal has held that import of second hand multifunction machine where photocopying is the primary function of the machine is allowed only against a license issued by DGFT .

• The Tribunal, in Sicpa India Ltd.Vs CC (2012-TIOL-532), has held that the custom authorities cannot challenge the validity of the Duty Free Import

Authorization (DFIA) which have been issued and transferred by the DGFT in terms of provisions of FTP.

Foreign Trade Agreements (FTA)

• The Central Government has extended customs duty concession on import of specified goods from Japan under the India-Japan Comprehensive Economic Partnership Agreement (CEPA).

(Customs Notification No. 28/2012 dated 27/04/2012)

• The Central Government has amended the list of goods covered under various notifications providing

exemption/concession from duty on import of specified goods in India in terms of India-Singapore Comprehensive Economic Cooperation Agreement

(CECA).

(Customs Notifications No. 33/2012, 34/2012, 35/2012 & 36/2012 dated 14/05/2012)

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Foreign Trade Policy (FTP) Antidumping duty Contacts

Antidumping Duty Notifications/Circulars

• The Central Government has extended the levy of antidumping duty on the import of Partially Oriented Yarn, falling under CTH 5402, originating in or exported from China PR for a period of five years from 02/05/2012.

(Customs (ADD) Notification No.

22/2012 dated 02/05/2012)

• The Central Government has extended levy of antidumping duty on the import of Viscose Filament Yarn, falling under CTH 5403 , originating in or exported from China PR for the period of five years from 04/05/2012.

(Customs (ADD) Notification No.

23/2012 dated 04/05/2012)

• The Central Government has extended the levy of antidumping duty on the import of Dry Cell Batteries, falling under CTH 8506 originating in or exported from China PR till 12/04/2013.

(Customs (ADD) Notification No.

25/2012 dated 14/05/2012)

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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 /N V Raman 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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