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Customs, FTP & WTO Newsletter

In the issue Customs

Foreign Trade Policy (FTP)

In the Issue Customs

Notifications/Circulars

• Exemption on import of goods using scrips issued under Post- Export EPCG Scheme on specified conditions

Case Law

Foreign Trade Policy Notifications/Circulars

• BCD paid on capital goods to be remitted under post-export EPCG Scheme as against whole of the duties of customs as per erstwhile provisions

• Deemed export benefits available February 2013 - Volume 15 Issue 11

Foreign Trade Policy (FTP) Anti-dumping duty

Contacts

Case Law Valuation

• Royalty not includible in the value of imported goods if not a condition of sale of imported goods

Others

• Time taken in litigation before other forum excludable in counting the period for filing the appeal before the Commissioner of Customs (Appeals)

• Refund consequent on finalization of provisional anti-dumping duty allowed without re-assessment of Bill of Entry

• Deemed export benefits available only for supply to notified Mega Power Projects

Case Law

• Concessional rate of excise duty on clearance from EOU to DTA on goods manufactured using indigenous materials only

• Notification affecting duty liability can have only prospective effect Anti-dumping Duty

• Levy of antidumping duty extended on the import of Flexible Stabstock Polyol, originating in or exported from USA & Japan till 4 February, 2014

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In the issue Customs

Foreign Trade Policy (FTP) Anti-dumping duty Contacts

Customs

Notifications/Circulars

• The Central Government has

removed the Land Customs Station of

“Namkhana” at Cooch Behar District in West Bengal for trade with

Bangladesh. Further, Central Government has added Loksan, Nagarkata and Kulkuli land customs station for trade with Bhutan.

(Notification Nos. 6/2013-Customs (NT) dated 17 January, 2013 and 18/2013 dated 31 January, 2013)

• The Central Government has

appointed Baddi (Solan) in the State of Himachal Pradesh as Inland

Case Law Valuation

• In ABB Ltd.v.CC [2012] 288 ELT 296 (CESTAT), the Tribunal held that the royalty paid under agreement granting “non-exclusive licence technology to the importer to manufacture and sell/supply the licensed product and other articles manufactured using licensed technology with no condition to import any components from the overseas suppliers” is not includible in the value of the goods imported as it cannot be said to be a condition of sale of imported goods.

Others of Himachal Pradesh as Inland

Container Depot (ICD) for the purpose of unloading of imported goods and loading of export goods.

(Notification No. 22/2013-Customs (NT) dated 20 February, 2013)

• The Central Government has issued exemption on import of goods by use of scrips issued under post export Export Promotion Capital Goods (EPCG) Scheme subject to fulfillment of the conditions specified in the said notification.

(Notification No. 01/2013 dated 21 January, 2013)

Others

• The Supreme Court of India, in Uniworth Textiles Ltd.v.CCE [2013]

288 ELT 161 (sc), held that a mere non-payment of duties cannot result in invocation of extended period of limitation by the Department.

• The Tribunal, in Ruchi Soya Industries Ltdv.Union of India (2013-TIOL-249-CESTAT-MUM), held that the importer is liable to refund without re-assessment of Bill of Entry where the conditions of the notification were fulfilled at the time of filing the Bill of Entry but the customs authorities failed to give the exemption.

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• In Abhirup Exports Pvt. Ltd.v.Union of India (2013-TIOL-65-HC-MUM), the Bombay High Court held that an order confirming duty demand cannot be passed when the document relied upon are not supplied to the assessee as it amounts to violation of natural justice.

• In Raymond Ltd.v.CC (2013-TIOL- 182-CESTAT-MUM), the Tribunal held that the importer is eligible for refund of duty paid during the course of Department of Revenue (DRI) investigation if there is no subsequent adjudication order and confirmation of demand within a reasonable time.

one year from the date of payment of duty cannot be rejected in case filed within one year from the date of final assessment of Bill of Entry when the adjudicating authority has earlier rejected the refund application on the ground that the assessment being provisional and instructed for filing the refund after finalization of the assessment.

• The High Court of Kerala, in Abhishek Exportsv.CESTAT, Bangalore [2013] 287 ELT 426(CESTAT), held that benefit under the Duty Entitlement Passbook Scheme (DEPB) is deniable in case of demand within a reasonable time.

• The High Court, in Enterprise

International Ltd.v.CC (2013-TIOL- 101-HC-MAD), held that the importer is liable to refund of excess duty without re-assessment of Bill of Entry where the refund arises on

finalization of provisional anti- dumping duty as such a condition is not contemplated in the provisions of the Customs Act, 1962 or the

Customs Tariff Act, 1975.

• In Singla Trading Co.v.CC [2013]

195 ECR 0047(CESTAT), the

Tribunal held that the refund claim of Special Additional Duty of Customs (SAD) filed after stipulated period of

Scheme (DEPB) is deniable in case the value of export product is enhanced fraudulently to avail excessive benefit.

• In Mehul Jhaveriv.CC [2013] 288 ELT 301(CESTAT), the Tribunal held that a delay of over 16 years in filing the appeal before the Commissioner of Customs (Appeal) due to litigation before the High Court is to be

excluded for calculating the time period in filing appeal as section 14 of the Limitation Act, 1963 prescribes that time taken by the Appellant in litigation before other forum is to be excluded while counting the period for filing the appeal.

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• The Gujarat High Court, in Binani Cement Ltdv.Union of India [2013]

288 ELT 193(Guj), held that refund claim in relation to customs duty collected without authority of law is not bound by limitation under the Customs Act, 1962 but limitation period prescribed under the

Limitation Act, 1963 as the collection of duty is unconstitutional under Article 265 of the Constitution of India.

• The Supreme Court of India , in UOI v.Adaniwilmar Ltd. (2013-TIOL-16- SC), upheld the order passed by Gujarat High Court holding that Gujarat High Court holding that education cess is to be levied only on such component of the customs duties which has not been exempted vide a notification.

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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 provided that the Basic Customs Duty (BCD) paid on capital goods shall only be remitted in the form of freely

transferable duty credit scrips under post export EPCG Scheme. Earlier, this benefit was provided to whole of the duties of customs.

(Notification No. 33 (RE-2012)/2009- 2014 dated 8 February, 2013)

• The Central Government, amongst others, has clarified the following in relation to the post export EPCG

benefit under post export EPCG Scheme is not available in case the exporter claims drawback on re- export of such capital goods.

(Public Notice No. 48 (RE-2012)/

2009-2014 (RE-2012) dated 8 February, 2013)

• The Central Government has clarified that the benefits under Chapter 3 of the FTP is available even if the

“Declaration of Intent” is not made in the Shipping Bills in relation to the exports made during 1 January, 2011 to 2 June, 2011. Further, request for grant of benefits under Chapter 3 should be filed with respective relation to the post export EPCG

Scheme:

− The computation of freely

transferable duty credit scrip(s) will be based on BCD amount paid as against the whole of the duties of customs as per the erstwhile provisions;

− The capital goods imported under the Scheme shall not be disposed of till the last date of export for

offsetting export obligation against such capital goods; and

− In case of re-export of capital goods found defective or unfit for use, the

should be filed with respective

regional authority(s) before 30 April, 2013.

(Public Circular No. 13 (RE-2012)/

2009-2014 dated 31 January, 2013)

• The Central Government has clarified that the deemed exports benefits will be available for supply to 111 Mega Power Projects notified vide

Notification No. 49/2012-Customs dated 10 September, 2012 subject to fulfilment of the prescribed

conditions.

(Policy Circular No. 14 (RE-2012) /2009-14 dated 4 February, 2013)

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Foreign Trade Policy (FTP)

Anti-dumping duty Contacts

• The Bangalore Commissionerate has clarified that payment of extra duty deposit (EDD) @ 1% pending Special Valuation Branch investigation in relation to the goods imported by EOU/STP/EHTP units should not be insisted upon by the Customs

authorities. Further, it is clarified that in all such cases the EDD shall be debited in B-17 Bond and the final adjustment of duty foregone, if any, shall be made in such bond upon the finalization of provisional assessment.

(Commissioner of Customs, Bangalore C.No. VIII/48/70/2011-Cus Tech., dated 21 January, 2013)

exporter is willing to pay back the drawback already sanctioned along with interest and such conversion to the Advance License scheme has not been denied by the DGFT or Customs authority on account of any dispute.

• The Tribunal, in CCEv.Horizon Flora India Ltd. (2013-TIOL-203-CESTAT- MUM), held that notification which affects the duty liability can only have prospective effect and it cannot be given retrospective effect.

Case Law

• In STL Exports Ltd.v.CCE [2013] 288 ELT 262(CESTAT), the Tribunal held that concessional rate of excise duty is chargeable on clearance of goods from EOU to DTA, where such goods are manufactured using indigenous material only.

• In Cherma’s Exquisite Ltd.v.CC (2013-TIOL-155-CESTAT-MAD), the Tribunal held that conversion of shipping bill from Duty Drawback Scheme to Advance License Scheme in terms of section 149 of the Customs Act, 1962 shall not be denied where the

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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 import of Flexible Stabstock Polyol falling under Customs Tariff Heading (CTH) 3907 20, originating in or exported from United States of America and Japan till 4 February, 2014.

(Customs (ADD) Notification No.

1/2013 dated 4 February, 2013)

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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

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

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