Tag: Indirect Taxes

Duty Drawback under Custom Act

In ‘duty drawback’, the excise duty and customs duty paid on inputs and service tax paid on input services is given back to the exporter of finished product by way of ‘duty drawback’. It may be noted that duty drawback under section 75 is granted when imported materials are used in the manufacture of goods

Provisional Assessment of Duty

(1) Notwithstanding anything contained in this Act, but without prejudice to the provisions contained in section 46 — (a) where the proper officer is satisfied that an importer or exporter is unable to produce any document or furnish any information necessary for the assessment of duty on the imported goods or the export goods, as

Valuation of Export Goods

SELF ASSESSMENT ON BASIS OF ‘RISK MANAGEMENT SYSTEM’ (RMS) One major step is being taken to move in the direction of implementing international best practices in customs clearance. A ‘Risk Management System’ for customs clearance of import and export cargo has been introduced. The details of scheme are contained in MF(DR) circular No. 43/2005-Cus dated

Value for Purpose of Customs Act

Customs duty is payable as a percentage of ‘Value’ often called ‘Assessable Value’ or ‘Customs Value’. The Value may be either (a) ‘Value’ as defined in section 14(1) of Customs Act or (b)Tariff value prescribed under section 14(2) of Customs Act. The provisions relating to customs valuation have been completely revamped by introducing new section

Other Provisions in Customs

Exemptions and remission • Exemption can be granted by Government by issuing a notification. • Capital goods and spares can be imported under project imports at concessional rate of customs duty. • Remission can be obtained on goods lost/pilfered in port • Title of imported goods can be relinquished and then no customs duty will

Baggage, Courier and Import Through Post

Baggage includes unaccompanied baggage but does not include motor vehicles [section 2(3)] • Indians going out can take out any amount of foreign currency as long as it is obtained from authorised foreign exchange dealer. He can take out and bring in Indian currency only upto Rs. 1,000. • Baggage includes all dutiable articles imported

Procedures for Export

The broad procedures to be followed for exports are as follows — • Submit Shipping Bill for export to customs authorities • Submit invoice, packing lists, contracts, exports authorisation (if applicable) and other related documents • Submit necessary declarations for export. Submit* GG/SDF/SOFTEX form as required under FEMA* Excise ARE-1 form • The ‘Export Value

Procedures for Import

Goods should arrive at customs port/airport only. • Person in charge of conveyance is required to submit Import Manifest or Export Manifest. • Goods can be unloaded only after grant of ‘Entry Inwards’. • Importer has to submit Bill of Entry giving details of goods being imported, along with required documents. Electronic submission of documents

Valuation in Customs

Customs duty is payable as a percentage of ‘Value’ often called ‘Assessable Value’ or ‘Customs Value’. The Value may be either (a) ‘Value’ as defined in section 14(1) of Customs Act or (b) Tariff value prescribed under section 14(2) of Customs Act (section amended w.e.f.10-10-2007) • Transaction value at the time and place of importation