Staying Updated

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Customs, FTP & WTO Newsletter

In the issue

Customs

Foreign Trade Policy (FTP)

In the Issue

Customs

Notifications/Circulars

• Mandatory e-payment of customs duty for specified importers from 17 September, 2012

• Customs duty exempt on re-import of goods originally exported by EOU and rejected by the foreign buyer

• Clubbing of Advance Authorization issued before 31 March, 2001 permitted where application is filed by exporters on or before 31 March, 2012

Case Law

• Extended period of limitation not invokable against importer if DEPB

September 2012 - Volume 15 Issue 06

Foreign Trade Policy (FTP) Anti-dumping duty

Contacts

and rejected by the foreign buyer Case Law

Classification

• Combined refrigerator-freezer with separate external doors to be classified under CTH 8418.10 Others

• Refund of inadvertently paid customs duty available even without

challenging the assessment where there is no dispute between the importer and the customs authority Foreign Trade Policy

News

• Central Government may impose

invokable against importer if DEPB script is obtained by original license holder on the basis of forged

documentation

• Penalty under specific penal provision not leviable if offence under such provision is not alleged in SCN

Foreign Trade Agreement

• Rates of customs duty in relation to goods imported under SAFTA amended

Anti-dumping Duty

• Levy of anti-dumping duty extended on import of Nonyl Phenol falling under CTH 2907, originating in or exported from Chinese Taipei, till 21

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In the issue Customs

Foreign Trade Policy (FTP) Anti-dumping duty Contacts

Customs

• The Central Government has

mandated e-payment of customs duty with effect from 17 September, 2012 for the following importers:

– Importer paying customs duty of INR 100,000 or more per Bill of Entry.

– Importer is registered under Accredited Client Programme (ACP).

(Circular No. 24/2012 dated 5 September, 2012)

course of maintenance, repair or overhaul of the aircraft in a Special Economic Zone. The exemption is available subject to the condition that goods replaced or removed are

returned to owner of the aircraft without any sale.

(Notification No. 52/2012 dated 13 September, 2012)

• The Central Government has clarified that goods that were originally

exported by Export Oriented Units are exempt from customs duty on re- import on account of being rejected by the foreign buyer.

• The Central Government has issued a list of specified mega power projects eligible for importing goods for setting up and expansion at nil customs duty on fulfillment of specified conditions. Hence, the earlier exemption available to all mega power projects has been restricted to these notified projects.

exempted customs duty on import of parts, components of aircraft

replaced or removed during the

Case Law Classification

• In Hitachi Home and Life Solution Ltd v.CC (2012-TIOL-1167-CESTAT- MUM), the Tribunal held that the refrigerator-freezer with separate external doors will be classified under Customs Tariff Heading (CTH) 8418.10 as “combined refrigerator-freezers, fitted with separate external doors” and not under 8418.21 as “refrigerators, household type” since CTH 8418.10 is more specific heading.

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• The Tribunal, in Patel Widecom (India) Ltd. v.CC (2012 (282) ELT 425), held that Personal Digital Assistant (PDA) used principally for retrieving data from remote

computers through wireless networks and presenting it to the user is

classifiable under CTH 8471 as computer machine and not under CTH 8479 as “machines having individual functions” since it is not capable of doing any specific function other than a computer.

Others

• The Tribunal, in Starlite Components Ltd. v.CC (2012-TIOL-1090-

(2012 (283) ELT 474), the

Government of India held that once the applicant abandons right, title and interest in the goods re-exported the claim for drawback is liable to be rejected as the applicant cannot have any liaison with anything connected with the abandoned goods.

• The Tribunal, in Anupam Products Ltd. v.CC (2012 (282) ELT 451), held that the importer can make

application for refund of the excess duty paid inadvertently even in the absence of challenging assessment order, in case there is no dispute between the importer and the Ltd. v.CC (2012-TIOL-1090-

CESTAT-MUM), held that

declaration of MRP for purpose of levy of CVD is required only when the imported goods are intended for retail sale in terms of Legal Metrology (Packaged Commodities) Rules, 2011.

• In Web Knit Exports (P) Ltd. v.CC (2012-TIOL-824-CESTAT-MAD), the Tribunal held that interest is payable on duty drawback after expiry of one month from the date of receipt of Tribunal’s order in favour of the exporter.

• In a revision application filed before the Department of Revenue in the

between the importer and the customs authority at the time of clearance of goods.

• In Midi Extrusions Ltd. v.CC (2012 (282) ELT 471), the Tribunal held that the principle of unjust

enrichment is not applicable on refunds arising out of extra customs duty paid on goods captively

consumed.

• The Tribunal, in Shah Khetaji Dhanaji & Co. v.CC (2012-TIOL- 1133-CESTAT-MUM) held that where the Commissioner of Customs

(Appeals) condones a delay of 30 days in filing

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the appeal but the importer files the appeal beyond the 30th day for it being a Saturday, the appeal is to be treated as filed within the condonable limit.

• In De Nora India Ltd. v.CC (2012- TIOL-1134-CESTAT-MUM), held that where there is an accidental slip on the part of the customs officer by not giving the benefit of the exemption notification available to the importer unconditionally, the assessment of the Bill of Entry need not be challenged as the same can be corrected in terms of section 154 of the Customs Act, 1962.

• In CC v.Palletainer Transport Pvt. Ltd.

(2012-TIOL-1204-CESTAT-BANG),

• In a revision petition filed before the Department of Revenue in the matter of Mahindra & Mahindra Ltd. (2012 (283) ELT 313), the Government of India held that duty drawback is not eligible on export of finished goods when there was unconditional

exemption notification on raw material required for manufacture of finished goods but the exemption is voluntarily not availed by the exporter.

(2012-TIOL-1204-CESTAT-BANG), the Tribunal held that splitting the value of equipment artificially into hardware and software to claim benefit of exemption notification amounts to misdeclaration, therefore, liable for confiscation of goods and penal action.

• The Madras High Court, in Medopharmv.Joint Secretary to Government of India (2012 (283) ELT 20), held that the drawback claim for as such re-export of imported goods is liable to be rejected in case exporter files drawback claim under the category of goods manufactured in India.

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In the issue Customs

Foreign Trade Policy (FTP)

Anti-dumping duty Contacts

Foreign Trade Policy (FTP) News

• The Central Government may impose restrictions on import of used capital goods to protect domestic manufacturers.

(Source: Business Standard, New Delhi, dated 9 August, 2012) Notifications/Circulars

authorised five additional laboratories to carry out certification/grading of diamonds of 0.25 carat and above.

(Notification No. 11 (RE-2012)/2009- 2014 dated 22 August, 2012)

installation certificate verification are requested by the customs authorities to the Central Excise Authorities having jurisdiction over the premises of the importer, in respect of export promotion schemes including Export Promotion Capital Goods (EPCG) authorizations, the Central Excise authorities should include in their verification a check of the periodical utility bills containing the address.

(Circular No. 25/2012-Cus dated 6 September, 2012)

• The Central Government has clarified that clubbing of Advance

Authorisation (AA) issued before 31 March, 2001 shall be permitted in 2014 dated 22 August, 2012)

• The Central Government has amended one of the conditions imposed in relation to import of new vehicles into India covered under Chapter 87 of ITC (HS) which states that every new vehicle shall be imported from the

“country of manufacture”. The phrase

“country of manufacture” has been amended to include “a single market like the European Union”.

(Notification No. 13 (RE-2012)/2009- 2014 dated 28 August, 2012)

• The Central Government has clarified that when address verification or

March, 2001 shall be permitted in cases where the application for

clubbing of AA is filed by an exporters on or before 31 March, 2012 and all the applications filed thereafter in relation to clubbing of such AA will not be entertained in terms of the provisions of FTP.

(Circular No. 5 (RE-2012)/2009-14 dated 21 September, 2012)

• The Central Government has formulated a checklist of document/information to be submitted by an exporter with the DGFT authorities for obtaining Export Obligation Discharge Certificate

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(EODC), Advance Release Order and Revalidation of AA.

(Additional DGFT, Mumbai, Trade Notice No. 13/2012, 14/2012 dated 18 September, 2012 and 15/2012 dated 20 September, 2012)

Case Law

• The Kerala High Court, in CC v.

Georgekutty N.V. (2012 (282) ELT 498), held that door and floor mats obtained from rubber compounded sheet cannot be treated as rubber compounded sheet for claiming benefits under Duty Entitlement Passbook Scheme (DEPB) since the

• The Delhi High Court, in J S Designer Ltd. v.CC (2012-TIOL-719-HC-DEL- CUS), held that there is no need for continuation of bank guarantee in case goods are exported under DEPB scheme and export consideration is realized.

• In Hindustan Dorr Oliver Ltd. v.CCE (2012 (282) ELT 473), the Tribunal held that no demand can be made on goods cleared from Domestic Tariff Area (DTA) unit but not delivered to Special Economic Zone (SEZ) unit within the prescribed period in case the same are received back in the DTA unit.

Passbook Scheme (DEPB) since the benefits are extended only to

specified products covered under the scheme.

• The Tribunal, in CC v.Patiala Castings Pvt. Ltd. (2012 (283) ELT 268), held that the extended period of limitation cannot be invoked against the transferee importer availing benefit under the DEPB scheme in case where the DEPB scrip was obtained by the original license holder on the basis of forged

documentation and importer has no information about the fraud

committed by original license holder.

DTA unit.

• In Vikram Jain v.CC (2012-TIOL- 1080-CESTAT-BANG), the Tribunal held that penalty under any specific penal provision cannot be levied in case offence under such provision is not alleged in the show cause notice (SCN).

• The Bombay High Court, in Sanvijay Rolling and Engineering Ltd. v.CC (2012-TIOL-703-HC-MUM), held that conversion work undertaken through job worker on goods

imported under AA does not amount to transfer of imported goods

violating the actual user condition.

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Foreign Trade Agreements (FTA)

• The Central Government has amended the rates of customs duty for goods imported under South Asian Free Trade Agreement (SAFTA) and also reduced the number of tariff lines in the sensitive list for Non-Least Developed Countries.

(Customs Notification No. 48/2012 dated 6 September, 2012)

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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 Nonyl Phenol falling under CTH 2907, originating in or exported from Chinese Taipei till 21 August, 2013.

(Customs Notification (ADD) No.

39/2012 dated 24 August, 2012)

• The Central Government has extended anti-dumping duty on imports of Metronidazole falling under CTH 2933.29.20 and originating in or

• The Central Government has extended the levy of anti-dumping duty on the import of specified Resin or other organic substances bonded wood or ligneous fibre boards falling under CTH 4411, originating in or exported from China PR, Indonesia, Malaysia and Sri Lanka for a period of six months effective from 21 September, 2012.

43/2012 dated 21 September, 2012)

exported from China PR. This duty has been imposed for a period of five years effective from 30 August, 2012.

40/2012 dated 30 August, 2012)

• The Central Government has extended the levy of anti-dumping duty on the import of Ductile Iron Pipes falling under CTH 7303, originating in or exported from China PR till 12 September, 2013.

41/2012 dated 13 September, 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

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