Overview of Foreign Trade Policy

Custom Law

RSA Legal Solutions(Attorneys in Customs, Excise, Service tax, Foreign Trade Policy, SEZ, FEMA etc.)

A: 417, Paras Trade Centre, Gwal Pahari, Faridabad Road, Gurgaon-122 003 M: 098910 86862 P: 0124-4366975 E: scjain@rsalegalsolutions.com, abhishek@rsalegalsolutions.com W: www.rsalegalsolutions.com 2Customs Law

3Customs Law

I-Customs-General Overview4

4Customs-General Overview5Constitution Provision Article 246 (1) of Constitution of India states that Parliament has exclusive powers to make laws with respect to any of matters enumerated in List I in the Seventh Schedule to Constitution. List I Entry No. 83 deals with duties of Customs including export duties

Legal ProvisionCustom Law is governed as per Customs Act, 1962Custom duty is on imports into India and export out of India. Section 12 of Customs Act, often called charging section, provides that duties of customs shall be levied at such rates as may be specified under The Custom Tariff Act, 1975 or any other law for the time being in force, on goods imported into, or exported from, India.First Schedule of Customs Tariff Act, 1975 Import Tariff Second Schedule of Customs Tariff Act, 1975 - Export Tariff

Basic Principles Import/Export is free unless regulated under the Foreign Trade Policy

Customs-General Overview (Contd.)6Basic Principles (Contd.)Prohibition/restriction under Import Policy or Export Policy apply to all cross border transactionsLicense requirements, as applicable, on restricted goods (under customs laws or other laws in force) to be complied withConcept of self-assessment introducedVarious sections authorise Central Government to issue notification. The main are section 25 (1) to grant partial or full exemption from duty

Customs-Documents to be submitted for Import/Export7

For ImportFor ExportBill of Entry to be presented electronically unless permitted otherwise by the CommissionerShipping bill to be presented electronically unless permitted otherwise by the CommissionerInvoice and Packing list Invoice and Packing listImport license, where necessaryExport License, where necessaryCountry of origin certificate, where preferential rate is claimedExport Inspection Agencys Certificate where necessaryInsurance Memo/PolicyGRI form/SDR/SOFTEX etc.Bill of Lading or Delivery OrderA.R.E.-1/2 form of Central ExciseII-Customs-Classifications8

8Customs-Classifications9Import and Export of goods are to be classified according to the Tariff Item number mentioned in Custom TariffHarmonised System provides commodity/product codes and description upto 4 digit (heading) and 6 digit (sub-heading) levels only and member countries of World Custom Organisation (WCO) are allowed to extend the codes upto any level. India has developed 8 digit level classification.Single dash (-) at the beginning description indicates a group, while two dashes (- -) at the beginning indicate a sub-group. Triple dash (- - -) and quadruple dash (- - - - )indicate sub sub-classification. For your clarification table is listed below:

Tariff ItemDescriptionUnitStandard rate of dutyPreferential Areas1508Ground nut oil and its fractions, whether or not refined but not chemically modified1508 10 00- Crude OilKG100%90%1508 90Other :1508 90 10--- Deodorized (Salad Oil)

KG100%90%--- Other :1508 90 91---- Edible gradeKG100%90%1508 90 99---- OtherKG100%90%III-Customs-General Rules of Interpretation10

10Customs-General Rules of Interpretation11Rules for Interpretation of Schedule to Tariff are given in the Tariff itself. These are termed as General Rules of Interpretation Rules (GIR)There are six Rules for interpretation of the Customs Tariff Act.Rule 1 takes precedence over all the following Rules.Rule 1 classification to be determined by the terms of the Heading and of the Section or Chapter Notes. Only when the imported/export goods cannot be classified in terms of Rule 1, then reference is made to other rules for classification under Schedules to Customs Tariff Act.Rule 3(a)- The heading which provides the most specific description shall be preferred to headings providing a more General DescriptionRule 3(b) - Mixtures, composite goods consisting of different materials or made up of different components and goods put up in sets for retail sale, which cannot be classified by reference to (a) shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicableRule 3 (c) - When goods cannot be classified by reference to (a) or (b) they shall be classified under the heading which occurs last in numerical order among those which equally merit classification

IV-Customs-Types of Customs duty and its Computation12

12Customs-Types of Custom Duty13

DutyLevied underBasic Customs Duty (BCD)Section 12, Customs Act, 1962Additional Customs Duty (CVD)Section 3(1), Customs Tariff Act, 1975Education and Secondary Education cess on customs dutyFinance Act 2004 and Finance Act 2007 respectivelyAdditional duty of Customs (SAD)Section 3(5), Customs Tariff Act, 1975National Calamity Contingent Duty (NCCD)Section 134 of Finance Act, 2003Countervailing duty on subsidized articlesSection 9, Customs Tariff Act, 1975Safeguard DutySection 8B, Customs Tariff Act, 1975Anti-dumping dutySection 9A, Customs Tariff Act, 1975Customs-Computation of Custom Duty14

Sl. No. Duty Component Rate Duty Amt. Value AAssessable Value --100 BBasic Customs Duty (BCD) 10%10110 CAdditional Duty in lieu of Central Excise Duty (CVD) 12% 13.20123.20Total Duty -23.20-DEducation Cess 2%0.46123.66ESec. & Higher Education Cess 1%0.23123.89FAdditional Customs Duty in lieu of sales tax/VAT4% 4.96128.85Effective Customs Duty 28.85* Assessable Value is calculated on the basis of CIF value and 1% landing chargesCustoms-Computation of Custom Duty (MRP based)15

Sl. No. Duty Component Rate Duty Amt. Value AAssessable Value --100 BBasic Customs Duty (BCD) 10%10110 MRP (assumed) 200 Value post abatement @ 35%--130CAdditional Duty in lieu of Central Excise Duty (CVD) 12% 15.60Total125.60DEducation Cess 2%0.51126.11ESec. & Higher Education Cess 1%0.26126.37FAdditional Customs Duty in lieu of sales tax/VAT4% 5.05131.42Effective Customs Duty 31.42V-Customs-Valuation16

16Customs-Valuation17Rates of Customs duties is leviable on imported goods and export goods which are specific or on ad valorem basis.Section 14 of the Customs Act, 1962 lays down the basis for valuation of import and export goods. Custom Valuation (Determination of Value of Imported Goods) Rules, 2007 and Customs Valuation (Determination of Value of Export Goods) Rules, 2007 have been notified from 10-10-2007 which governs the transaction valueTransaction Value-For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force, the value of the imported goods and export goods shall be the transaction value of such goods, that is to say, the price actually paid or payable for the goods when sold for export to India for delivery at the time and place of importation, or as the case may be, for export from India for delivery at the time and place of exportation, where the buyer and seller of the goods are not related and price is the sole consideration for the sale subject to such other conditions as may be specified in the rules made in this behalf :Providedthat such transaction value in the case of imported goods shall include, in addition to the price as aforesaid, any amount paid or payable for costs and services, including commissions and brokerage, engineering, design work, royalties andlicencefees, costs of transportation to the place of importation, insurance, loading, unloading and handling charges to the extent and in the manner specified in the rules made in this behalfProvidedfurther that the rules made in this behalf may provide for,- (i)thecircumstances in which the buyer and the seller shall be deemed to be related;

Customs-Valuation (Contd.)18(ii)themanner of determination of value in respect of goods when there is no sale, or thebuyer and the seller are related, or price is not the sole consideration for the sale or in anyother case;(iii)the manner of acceptance or rejection of value declared by the importer or exporter, as thecase may be, where the proper officer has reason to doubt the truth or accuracy of suchvalue, and determination of value for the purposes of this section

In respect of some consumer goods, excise duty is payable on basis of MRP (Maximum Retail Price) printed on the carton . If such goods are imported, CVD will be payable on basis of MRP printed on the packing.

Transaction value is not acceptable if buyer and seller are related. Definition of related person is identical in rule 2(2) Custom Valuation (Determination of Value of Imported Goods) Rules, 2007 and rule 2(2) of Customs Valuation (Determination of Value of Export Goods) Rules, 2007

The importer or his agent has to furnish a declaration under Rule 11 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 disclosing full details relating to value of imported goods.

VI-Customs-Provisional Assessment19

19Customs-Provisional Assessment20Section 18 of the Customs Act provides for assessing the duty provisionally and allowing clearance of the goods by filing the bond with appropriate security

Conditions for allowing provisional assessmentWhere importer or exporter is unable to produce any documents or furnish any information necessary for the assessment of duty on the imported goods or the export goods as the case may be

Where the proper officer deems it necessary to subject any imported goods or export goods to any chemical or order test for the purpose of assessment of duty thereon or

Where the importer or the exporter has produced all the necessary documents and furnished full information for the assessment of duty but the proper officer deems it necessary to make further enquiry for assessing the duty

Once the duty is finally assessed the importer has to pay the differential duty or can claim refund as the case may be and apply for finalization of bills of entry

VII-Customs-Warehousing21

21Customs-Warehousing22As per section 2(43) of Customs Act, warehouse means a public warehouse appointed under section 57 or a private warehouse licensed under section 58 of Customs Act Warehouse can be appointed or licensed only at a warehousing station

Section 9 of Custom Act authorizes CBEC to declare places as warehousing station. This also applies to the operations in customs bonded warehouses like EOU/EHTP/STP units

Public warehouses are appointed by Assistant Commissioner of Customs under Section 57 of Customs Act

Private warehouses licensed by Assistant/Deputy Commissioner of Customs

Normal warehousing period is one year, extension can be granted Capital goods intended for use in any EOU may be kept for five years

Goods other than the capital goods intended for use in any EOU may be kept for three years

Customs-Warehousing (Contd.)23Warehoused goods may be re-exported to a place outside India without payment of import duty subject to the conditions

Importer can clear the goods warehoused on payment of customs duty

Manufacturing activity allowed under the warehouse

VIII-Customs-Appeals24

24Customs-Appeals25First Appeal lies to Commissioner (Appeal) in case order is passed by the Additional Commissioner and second appeal to the CESTAT

Appeal before the Commissioner (Appeal) has to be filed within the period of 60 days and 90 days in case of filing of appeal before CESTAT

In case, order is passed by the Commissioner, then first appeal lies to the CESTAT

In few cases, Appeal lies to the Central Government such as: - Baggage- Payment of duty drawback- Goods short landed in India Appeal can be made to High Court against order of CESTAT if the case involves substantial question of law

Appeal to Supreme Court can be made in following cases:- Judgment of High Court in appeal, if High Court certifies it to be a fit case for appeal to Supreme Court- Order of Appellate Tribunal where it relates to question relating to rate of duty excise or value for purpose of duty- By Special Leave Petition under Article 136 of Constitution

One has also the option to approach before the Settlement Commission. The decision to move to the Settlement Commission has to be taken before the Order in Original passed by the adjudicating authority

IX-Customs-Refund26

26Customs-RefundRefund of Export DutyExport duty is charged on very few items but section 26 of Customs Act makes provision for refund of export duty in following situations:- Goods returned are not re-sale to the person- Goods are re-imported within one year- Refund claim is lodged within six months from date of clearance of customs officer for re-importationRefund of Import Duty-Section 26AImporter can get refund of Import duty, if the goods are found to be defective or in not in conformity with the specifications agreed upon between the importer and the supplier of goods provided goods have not been worked repaired or used after importation. Refund under this section can be granted if the following conditions are satisfied:The goods are exported or the importer relinquishes his tiltle to the goods and abondons them to customs or such goods are destroyed or rendered commercially valueless in the presence of proper officerCustoms-Refund (Contd.)Refund of Import Duty-Section 26A (Contd.)No refund allowed in case of perishable goodsAn application for refund of duty shall be made before the expiry of six months from the relevant date in such form and in such manner as may be prescribed. ExplanationForthe purposes of this sub-section, relevant date means, a)in cases where the goods are exported out of India, the date on which the proper officer makes an order permitting clearance and loading of goods for exportation under section 51; b)incases where the title to the goods is relinquished, the date of such relinquishment c)incases where the goods are destroyed or rendered commercially valueless, the date ofsuch destruction or rendering of goods commercially valueless.Refund of SADImporter can claim SAD refund (duty paid at the time of Import) on fulfilment of the conditions specified in Notification No. 102/2007-Cus dated 14 Sep 2007. Refund to be filed within period of one year from the date of payment of duty Importer shall pay appropriate sale tax or VAT as the case may beCustoms-Refund (Contd.)Refund under Section 27Anypersonclaimingrefundofanydutyorinterest, (a)paidbyhim;or (b)bornebyhim, maymakeanapplicationinsuchformandmannerasmaybeprescribedforsuchrefundtothe AssistantCommissionerofCustomsorDeputyCommissionerofCustoms,beforetheexpiryofone year,from thedateofpaymentofsuchdutyorinterest: Limitation period does not apply where duty or interest has been paid under protest The period of limitation of one yearshallbe computedinthefollowingmanner,namely:(a)inthecaseofgoodswhichareexemptfrompaymentofdutybyaspecialorderissued undersub-section(2)ofsection25,thelimitationofoneyearshallbecomputedfromthedateofissueofsuch order;(b)wherethedutybecomesrefundableasaconsequenceofanyjudgment,decree,orderor directionoftheappellateauthority,AppellateTribunaloranycourt,thelimitationofoneyearshall becomputed fromthedateofsuchjudgment,decree,orderordirection;(c)whereanydutyispaidprovisionallyundersection18,thelimitationofoneyearshallbe computedfromthedateofadjustmentofdutyafterthefinalassessmentthereof.'.orin case of re-assessment, from the date of such re-assessment.Customs-DrawbackDrawback in relation to any goods manufactured in India and exported means the rebate of duty or tax, as the case may be, chargeable on any imported materials or excisable materials used or taxable services used as input services in manufacture of such goods Rule 2(a) of Customs, Central Excise Duties and Service tax Drawback Rules, 1995No drawback will be paid if inputs are obtained without payment of customs/excise duty or input services are obtained without payment of service tax, no drawback will be paidSection 74 of Customs Act provide for drawback if the goods are re-exported as such while section 75 is applicable when imported materials are used in the manufacture of goods which are then exported Types of Drawback: All Industry RateWhen Cenvat Facility on inputs and input services has been availedWhen Cenvat Facility has not availed Brand Rate Customs-Drawback (Contd.) All Industry Rate is fixed under Rule 3 of Drawback Rules by considering average quantity and value of each class of inputs imported or manufactured in India. In inputs are obtained without payment of excise duty or if rebate if availed of excise duty paid on inputs, excise portion of duty drawback is not available but customs portion of All Industry rate of drawback will be availableIt is possible to fix all industry rate only for some standard products. It cannot be fixed for special type of products. In such cases, brand rate if fixed under Rule 6.Declaration should be made under drawback rules, on shipping bill or bill of export that claim of drawback is being made and that duties of customs and excise have been paid on materials.If the imported goods are used before re-export, the drawback will be allowed at a reduced percentage. Customs-Drawback (Contd.)32

Period between date of clearance for home consumption and date when goods are placed under customs control for export% of import duty to be paid as duty drawbackNot more than three months95%3 to 6 months85%6 to 9 months75%9 to 12 months70%12 to 15 months65%15 to 18 months60%More than 18 monthsNilX-Customs-High Sea Sale33

33Customs-High Sea SaleDocuments required in case of High Sea Sale:Agreement in respect of the High Sea Sale;Original Bill of Lading; andInvoice of the foreign supplier on high sea seller;Invoice of high sea seller on high sea sale buyer, etc.Other details as provided under Circular No. 32/2004-Cus dated 11.05.2004FTA benefits on High Sea Sales - Standing Order No. 06/2012 issued by Commissioner of Customs (Import), Jawaharlal Nehru Custom House, Nhava ShevaValue at which goods are bought by the High Sea Sale buyer to be taken as assessable value - Hyderabad Industries Ltd. vs. Union Of India, 2000 (115) ELT 593 (S.C.) Reduction in price at which goods were bought by the high sea sale buyer - Excel Glasses Ltd. vs. Commissioner of Customs, Trichy, 2004 (166) E.L.T. 496 (Tri. - BangCustoms-High Sea Sale and In Bond TransferHIGH SEA SALESIN BOND TRANSFER Goods sold when in High Sea. Goods have not crossed the customs frontier of India.- Goods sold in customs bonded warehouse.- Goods have crossed the customs frontier of India. Customs Duty payable on the value at which the goods are sold by the high sea seller to high sea buyer (Circular No. 32/2004-Cus.)- Customs duty payable on value at which goods were imported into India and not on the value at which they are sold to the buyer in the warehouse (Circular No. 11/2010-Cus.) High Sea Sale Charges to be included in the transaction value or 2% of the CIF Value to be included in the transaction value as a general practice.- No such charges to be included in the transaction value. Rate of duty as applicable on the date of filing of bill of entry for home consumption will be applied- Rate of duty as applicable on the date of filing of Ex-bond bill of entry will of appliedXI-Customs-Project Import36

36Customs-Project Import Facilitates imports of capital goods for setting up new projects Avoidance of delay in clearance of goods BCD 5% (saving 2.5 to 5%) CVD & SAD as per classification Applicable on import of capital goods & spares (upto 10% of total value) No Export Obligation

Customs-Project ImportGoods that can be imported under the schemeMachinery, Prime movers, instruments, apparatus, appliances, control gear, transmission equipment,auxiliary equipment, equipment required for research and development purposes,equipment for testing and quality control equipmentraw materials & components for the manufacture of these itemsspare parts, semi-finished material, consumables up to 10% of the assessable value of goods (essential for the maintenance of the plant or project ). Customs-Project Import-Registration of ContractOriginal deed of the contract or Purchase Order for the procurement/ supply of the goods.

A recommendatory letter from the concerned Sponsoring Authority certifying the goods as essential for the project and recommending grant of exemption.

A written application for registration indicating Location of the projectDescription of the articles to be manufactured/ produced/ exportedInstalled/ designed capacity and in case of substantial expansion- the proposed addition thereof.

Customs-Project Import-Import/AssessmentAssessments are provisionalImporters to indicate the Registration number assigned for the Project in the bill of entryCustoms will check the declared details of imported goods with the registered detailsValue debits will be made in the customs noting registers for monitoring the CIF value of imports.Goods not included in the Recommendatory letter can not be imported under the scheme

Customs-Project Import-Final AssessmentFinalization of Contract (Assessment) TimeWithin 3 months from date of clearance of last consignmentDocumentsStatement indicating the details of goods importedCertificate from the Chartered Engineer certifying the installation of each of the items of machinery at the project siteDocumentary evidence regarding the value and quantity of the goods imported

Plant Site VerificationPlant value exceeds Rs. 1 Crore and Selective if value is less than Rs. 1 CroreExtensionWhere the contract provides for an escalation clause and such escalation charges have not been paid Where the contract provides for final payment only after the commissioning of the plant and the payment has not been effected. Where the unit of the plant for which goods have been imported, has not been commissionedCustoms-Project Import and EPCG SchemeParticularsProject Import Scheme EPCG Scheme CoverageChapter 9801 of the Customs Tariff ActChapter 5 of the FTP BenefitConcessional rate of BCD @ 5%Concessional rate of import0%/3.09%Export ObligationsNo 6 times of duty savedActual user conditionsApplicable Applicable Import of spares PermittedPermittedProcedural Complications (Post Import)High MediumXII-Customs-Mega Power Projects43

43Customs-Exemption to Mega Power ProjectsIntroduced in the year 1995Policy Decision to allow duty free import of capital goods to mega power project having capacity of 1000MW or more and catering power to more than one state (Communication dated 10.11.1995 by Secretary, Ministry of Power, Government of India and revised guidelines for mega power project issued in 1998)

Sl. No. 288A of Notification No. 63/1999-Cus.

Sl. No. 400 of Notification No. 21/2002-Cus.

Goods required for setting up of Mega Power Project Sl. No. 507 of Notification No. 12/2012-Cus. subject to fulfillment of Condition No. 93 (Mega power project specified under List 32A)BCD NIL and CVD NIL

Goods required for expansion of Mega Power Project Sl. No. 508 of Notification No. 12/2012-Cus. subject to fulfillment of Condition No. 93 (Mega power project specified in the notification)BCD 2.5% and CVD - NIL Customs-Condition No. 93 of Notification No. 12/2012-Cus.Certificate from officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Power;

Provisional Mega Power Status Security to be furnished in form of FDR from any Scheduled Bank for a term of 36 months or more for an amount equal to the duty of customs payable on such imports but for this exemption;

Imports by a Central Public Sector Undertaking - the quantity, total value, description and specifications of the imported goods are certified by the Chairman and Managing Director of the said Central Public Sector Undertaking; and

Imports by a Private Sector Project - the quantity, total value, description and specifications of the imported goods are certified by the CEO of such project.

Customs-Rate of Customs DutySetting up of Mega Power ProjectBCD NIL Sl. No. 507 of Notification No. 12/2012-Cus.CVD NIL Sl. No. 507 of Notification No. 12/2012-Cus.SAD NIL Sl. No. 1 of Notification No. 21/2012-Cus. Expansion of Mega Power ProjectBCD 2.5% Sl. No. 508 of Notification No. 12/2012-Cus.CVD NIL Sl. No. 508 of Notification No. 12/2012-Cus.Cess NIL - Sl. No. 55 of Notification No. 69/2004-Cus. and Notification No. 28/2007-Cus.SAD NIL Sl. No. 99 of Notification No. 21/2012-Cus.

XIII-Deemed Export47

47Deemed ExportSupply of goodsAgainst Advance Authorization/DFIATo EOU/EHTP/STP/BTP To EPCG HoldersTo projects financed by notified multilateral/bilateral agencies/funds - under ICBAgencies/funds listed in Appendix 13Supply of goods to project for which MOF permits imports at zero dutySupplies under ICBMega Power ProjectsSupply of marine freight containers by EOU for exportsSupply to project funded by UN AgenciesSupplier entitled for benefits in 8.3(a) and/or (b)Supply to nuclear power projects through competitive bidding (no ICB)Supplier entitled for benefits in 8.3(a), (b) and/or (c)

Deemed Export (Contd.)Para 8.3 - deemed exports eligible for followingAdvance Authorization/DFIADeemed Export DrawbackRefund of terminal excise duty (TED) will be given if exemption is not available. Exemption from TED is available to the following supplies:Supplies against ICBSupplies of intermediate goods, against invalidation letter, made by an advance authorisation holder to another advance authorisation holder;Supplies of goods by DTA unit to EOU/EHTP/STP/BTP unit

XIV-Customs-Budget Highlights with respect to Customs50

50Customs-General Overview51General Customs duty rate remain unchangedFree baggage allowance raised from Rs.35,000/- to Rs.45,000/-Alignment in duty rates of various types of coals falling under chapter heading 2701 by rationalizing BCD at 2.5% and CVD at 2%Scope of advance ruling expanded to include private limited companiesProvision introduced for levy of safeguard duty on inputs/raw materials imported by an EOU and cleared into DTAIn case of appeal, mandatory pre deposit needs to be made to the extent of 7.5% of the amount involved at first appeals level and 10% at second stage level subject to a cap of INR 100 million*Scope of Settlement Commission expanded to include import/export through baggage, post and courier

*Interpretation required whether 10% is over and above 7.5 % or includes 7.5%. However, as per TRU 10% pre-deposit amount is over and above 7.5%

Custom Law: Amendment in Jumbo Notification i.e. 12/2012-Cus dated 17 March 201252The Government of India has made the amendment in Jumbo Notification No. 12/2012-Cus dated 17 March 2012.

Notification No. 12/2014-Cus dated 11 July 2014

Customs- Major Exemptions53

Exemption related to ITA productsExemption when goods imported from SingaporeOld NotificationNew NotificationAll goods covered under Tariff heading 8517 were exempted from whole of custom duty when imported into India.

(Notification No. 24/2005-Cus dated 01 March 2005)Some goods excluded vide the said notification such as soft switches, optical transport equipment, Packet transport node etc.

However, no such custom duty would be applicable when raw material is imported for the manufacturing of the goods which are specifically excluded from exemption vide the said notification.

(Notification No. 11/2014-Cus dtd. 11 July 2014)

Exemption in rate of duty is provided when Polymer of syterene falling under custom tariff heading 39031990 is imported from Singapore.

(Notification No. 10/2008-Cus dated 15 Jan 2008)The exemption is taken away in respect of said product

(Notification No. 17/2014-Cus dtd. 11 July 2014)

Customs- Major Exemptions (Contd.) 54

Exemption to imports by United Nations or International OrganizationOld NotificationNew NotificationNo clarity provided in regard to transfer of goods, re export of goods used in execution of projects financed by United Nations or International Organization

(Notification No. 84/97-Cus dated 11 November 1997)Vide the said Notification, the importer can do the following with respect of the goods imported prior to 01 March 2008:Transfer the goods to some other projects Re-export the goods Pay the custom duty at depreciated value

(Notification No. 22/2014-Cus dated 11 July 2014)

Importer has to register first in the department of Scientific and Industrial Research to claim the duty exemption benefit.

(Notification No. 51/96-Cus dated 23 July 1996)Even if the importer is not registered he can import the goods by paying custom duty. Importer can obtain registration after import. Once the registration is obtained refund application of duty paid amount can be filed within period of 1 year from the date of payment of such duties

(Notification No. 24/2014-Cus dated 11 July 2014)Exemption to LaboratoriesCustoms: Education Cess and Secondary Education Cess levied on Countervailing duty (CVD) on certain items55Sr. NoDescription of goods/ Tariff heading1Goods specified in heading, sub-heading or tariff items 3818, 8469 00 10, 8470, 8471, 8473 21 00, 8473 29 00, 8473 50 002Line telephone sets and line videophones of heading 85173Goods specified in tariff item 8519 50 004All prepared unrecorded media for sound recording or similar recording of other phenomena, other than products of Chapter 37 (excluding cards incorporating a magnetic stripe) of heading 85235Recorded media for reproducing phenomena other than sound or image of heading 85236Goods specified in heading, sub headings or tariff items 8531 20, 8532, 8533,8534 00 00, 85417Parts of electronic integrated circuits and micro-assemblies of tariff item 8523 52 or 8542 90 00Notification No. 18/2014-Cus and 19/2014-Cus dated 11 July 2014

Custom Law: Special Additional Duty (SAD) exemption extended to New Products56Notification No. 21/2014-Cus dated 11 July 2014The Government of India extended the SAD exemption to the following new items:Inputs or components for use in the manufacture of personal computers (laptop or desktop) including tablet computers Poly Vinyl Chloride (PVC) sheet and ribbon for use in manufacture of smart cards Parts and raw materials required for use in the manufacture of wind-operated electricity genetor

Thank You

RSA Legal Solutions(Attorneys in Customs, Excise, Service tax, Foreign Trade Policy, SEZ, FEMA etc.)

A: 417, Paras Trade Centre, Gwal Pahari, Faridabad RFEMAoad, Gurgaon-122 003 M: 098910 86862 P: 0124-4366975 E: scjain@rsalegalsolutions.com, abhishek@rsalegalsolutions.com W: www.rsalegalsolutions.com [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)

NotificationNo. 12/2014-Customs

New Delhi, the 11th July, 2014

G.S. R.(E).In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act,1962 (52 of 1962), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 12/2012-Customs, dated the 17th March,2012, published in the Gazette ofIndia, Extraordinary, Part II, Section 3, Sub-section (i),vide G.S.R.185 (E), dated the 17th March,2012, namely:-

In the said notification,-

(A) in the Table,-

(i) against serial number 29, for the entry in column (3), the entry Dark seedless raisin shall be substituted;

(ii) in serial number 51, for the entries in column (4), against clauses (A), (B) and (C) under item I of column (3), the entry Nil shall respectively be substituted;

(iii) against serial number 73, for the entry in column (4),the entry 7.5% shall be substituted;

(iv) after serial number 73 and the entries relating thereto, the following serial number and the entries shall be inserted, namely :-73A1520 00 00Crude glycerin for use in the manufacture of soapsNil-5;

(v) against serial number 96, for the entry in column (4), the entry 5% shall be substituted;

(vi) after serial number 104C and the entries relating thereto, the following serial number and the entries shall be inserted, namely:-104D2302 40 00Rice branNil--

2304De-oiled soya extractNil--

2305Groundnut oil cake/oil cake mealNil--

2306 30Sunflower oil cake/oil cake mealNil--

2306 60 00Palm kernel cakeNil--

2306 90Canola oil cake/oil cake meal, Mustard oil cake/oil cake meal, Rice bran oil cakeNil--;

(vii) after serial number 110 and the entries relating thereto, the following serial number and the entries shall be inserted, namely :-110A2518Dolomite for metallurgical use conforming to IS: 10346-20042.5%--;

(viii) after serial number 111 and the entries relating thereto, the following serial number and the entries shall be inserted, namely :-111A2521Limestone for metallurgical use conforming to IS: 10345-20042.5%--;

(ix) for serial number 122 and the entries relating thereto, the following serial number and the entries shall be substituted, namely :-1222701 19 10Coking coal2.5%2%-;

(x) against serial number 122A, for the entry in column (4), the entry 2.5% shall be substituted;

(xi) against serial number 123, for the entry in column (4), the entry 2.5% shall be substituted;

(xii) for serial number 124 and the entries relating thereto, the following serial number and the entries shall be substituted, namely :-1242701 11 00Anthracite coal2.5%2%-;

(xiii) after serial number 124 and the entries relating thereto, the following serial number and the entries shall be inserted, namely :-124A2701 19 90All goods2.5%2%-;

(xiv) against serial number 125, for the entry in column (4), the entry 2.5% shall be substituted;

(xv) after serial number 126 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely :-126A2707 40 00Naphthelene5%--

126B2707 50 00All goods2.5%--

126C2708Coal tar pitch5%--;

(xvi) after serial number 138B and the entries relating thereto, the following serial number and entries shall be inserted, namely:-138C2711 11 00 or2711 21 00Liquefied Natural Gas (LNG)NilNil8B;

(xvii) for serial number 141 and the entries relating thereto, the following serial number and the entries shall be substituted, namely:-1412711 12 00,2711 13 00,2711 19 00Liquefied propane and butane mixture, liquefied propane, liquefied butane and liquefied petroleum gases (LPG) imported by the Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited or Bharat Petroleum Corporation Limited for supply to household domestic consumers or to Non-Domestic Exempted Category (NDEC) customersNil--;

(xviii) after serial number 142A and the entries relating thereto, the following serial number and the entries shall be inserted, namely :-142B2711 12 00Propane2.5%--;

(xix) after serial number 173 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely :-173A2901 10 00All goods2.5%--

173B2901 21 00Ethylene2.5%--

173C2901 22 00Propylene2.5%--

173D2901 24 00Butadiene2.5%--

173E2902 41 00o-Xylene2.5%--;

(xx) after serial number 178 and the entries relating thereto, the following serial number and the entries shall be inserted, namely :-178A2905 11 00Methyl alcohol5%--;

(xxi) against serial number 185, for the entry in column (4), the entry Nil shall be substituted;

(xxii) after serial number 187A and the entries relating thereto, the following serial number and the entries shall be inserted, namely :-187B3823 11 11,All goods for use in theNil-5;

3823 11 12,or 3823 11 19manufacture of soaps and oleochemicals

(xxiii) against serial number 206, in column (3), for the item (a) and the entry relating thereto, the following shall be substituted, namely:-(a) Electric parts and wire rolls for fitting on electric lamp / table lamp / wall lamp / ceiling lamp / door lamp / window lamp / garden lamp;

(xxiv) after serial number 211 and the entries relating thereto, the following serial number and the entries shall be inserted, namely:-211A3208,3815,3901, or 3920The following goods for use in the manufacture of EVA (Ethylene Vinyl Acetate) sheets or backsheet, which are used in the manufacture of solar photovoltaic cells or modules, namely:-(i) EVA resin;(ii) EVA masterbatch;(iii) Poly ethylene terephthalate (PET) film;(iv) Poly vinyl fluoride (PVF);(v) Polyvinyldi-fluoride (PVDF);(vi) Adhesive resin; and(vii) Adhesive hardnerNil-15A;

(xxv) after serial number 230 and the entries relating thereto, the following serial number and the entries shall be inserted, namely :-230A3823 11 90,3823 12 00,3823 13 00,3823 19 00,or 2915 70All goods for use in the manufacture of soaps and oleochemicalsNil-5;

(xxvi) against serial number 233, in column (3), after the words Hoshangabad, the words and Bank Note Paper Mill India Private Limited, Mysore shall be substituted;

(xxvii) after serial number 233 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-233A.39orany ChapterRaw materials for use in manufacture of security fibre and security threads for supply to Security Paper Mill, HoshangabadNilNil5;

and Bank Note Paper Mill India Private Limited, Mysore for use in manufacture of security paper.

(xxviii) against serial number 244, for the entry in column (4), the entry Nil shall be substituted;

(xxix) against serial number 282, in column (3), in item (i), for the word Fusible, the words Fusible and non-fusible shall be substituted;

(xxx) against serial number 284, in column (3), after the item (o), the following items shall be inserted, namely:-(p) Fusible embroidery motifs or prints(q) Anti-theft devices like labels, tags and sensors(r) Pin bullets for packing, plastic tag bullets, metal tabs, bows, ring and slider and rings;

(xxxi) against serial number 312A, for the entry in column (4), the entry Nil shall be substituted;

(xxxii) against serial number 313, for the entry in column (4), the entry 2.5% shall be substituted;

(xxxiii) against serial number 314, for the entry in column (4), the entry 2.5% shall be substituted;

(xxxiv) against serial number 315, for the entry in column (4), the entry 2.5% shall be substituted;

(xxxv) against serial number 334, for the entry in column (2), the entry 7208, 7209, 7210, 7211, 7212, 7219, 7220, 7225 3090, 7225 4019 7225 50 or 7225 9900 shall be substituted;

(xxxvi) after serial number 335 and the entries relating thereto, the following serial number and the entries shall be inserted, namely:-335A7326 90 99Forged steel rings for manufacture of special bearings for use in wind operated electricity generators5%-46

335B7408Flat copper wire for use in the manufacture of photo voltaic ribbon (tinned copper interconnect) for manufacture of solar photovoltaic cells or modulesNil-15A;

(xxxvii) against serial number 417,-

(i) in column (3), after item (2), the following item shall be inserted, namely:-(3) Parts, other than those mentioned at (2) above, required for caustic soda unit or caustic potash unit using membrane cell technology;

(ii) in column (4), for the entry 5%, the entry 2.5% shall be substituted.

(xxxviii) against serial number 432, in column (3), the words and figures of 19 inches and above, shall be omitted;

(xxxix) after serial number 432 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely:-432A8540 11Colour television picture tubes for use in the manufacture of cathode ray televisionsNil--

432B8529,4016The following goods for use in the manufacture of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panels of heading 8529, namely:-(i) Open cell (15.6 and above);(ii) Plate diffuser;(iii) Film diffuser;(iv) Reflector sheet;(v) Film, top;(vi) Film, middle;(vii) Film, bottom;(viii) BAR, LED;(ix) Cushion /Gasket;(x) Bezzal;(xi) Back cover sheetNil-5;

(xl)after serial number 433 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely:-433A8543E-ReadersNil--

433B8548 10 10 or8548 10 20Battery scrap and battery waste5%--;

(xli)against serial number 468, for the entry in column (4), the entry 2.5% shall be substituted;

(xlii)after serial number 490 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-490A90 or any other ChapterPortable X-ray machine / systemNil-89A.

(B) after the Table, in the proviso, after clause (bb), the following clause shall be inserted, namely:-(bc) the goods specified against serial number 104D of the said Table on or after the first day of January, 2015;.

(C) in the ANNEXURE,-

(i) after condition number 8A and entry relating thereto, the following condition shall be inserted, namely:-8BIf in respect of the Liquefied Natural Gas (LNG) for which exemption is claimed,-(a) the importer indicates in the Bill of Entry, the quantity of LNG for which the exemption is claimed; and(b) the importer produces a certificate from the Assistant Commissioner or Deputy Commissioner of Customs, as the case may be, having jurisdiction over the place of export certifying that the quantity of LNG for which exemption is being claimed has actually been exported in terms of equivalent quantity by Gas Authority of India Limited (GAIL) to Pakistan during the preceding month under a contract entered into by GAIL for supply of re-gasified LNG to Pakistan based on import of LNG into India.;

(ii) against condition number 9, clause (c) shall be omitted;

(iii) after condition number 15 and the entries relating thereto, the following condition shall be inserted, namely:-

15AIf , the importer at the time of import,-furnishes in all cases a certificate to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, from an officer not below the rank of a Deputy Secretary to the Government of India in the Department of Electronics and Information Technology (DeitY) recommending the grant of the exemption and the said officer certifies that the goods are required for the specified purpose; andfurnishes an undertaking to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, to the effect that,-

he shall use the imported goods for the purpose specified; andin case he fails to comply with item (i), he shall pay an amount equal to the difference between the duty leviable on the imported goods but for the exemption under this notification and that already paid at the time of importation..

(iv) in condition number 24,-

(a) in clause (a), (c) and (d), for the words Apparel Export Promotion Council or Council for Leather Exports, words Apparel Export Promotion Council or Indian Silk Export Promotion Council or Council for Leather Exports shall be substituted;

(b) in clause (b), for the figure, words, letters and brackets 3 percent of the FOB value of textile garments (other than handloom garments) or leather garments, as the case may be, following shall be substituted, namely:-5 percent of the FOB value of textile garments (other than handloom garments) or 3 percent of the FOB value of leather garments;

(v) in condition number 40, for the words Director (Rolling Stock, Electrical and Signaling), the words Director (Electrical) shall be substituted;

(vi) after condition number 89, the following condition shall be inserted, namely:- 89AIf,-(a) the goods are imported by the Police Force of the States or Union territories or Central Reserve Police Force or National Security Guard or Border Security Force or Central Industrial Security Force or Indo-Tibetan Border Police or Assam Rifles or Railway Protection Force or Special Frontier Force for bomb detection or disposal purposes; and(b) the importer produces a certificate from an officer in the Ministry of Home Affairs or Ministry of Railways, as the case may be, not below the rank of Under Secretary to the Government of India to the effect that the said goods are intended for the aforesaid use.;

[F. No. 334/15/2014-TRU]

(Pramod Kumar) Under Secretary to the Government of India

Note.- The principal notification No. 12/2012-Customs, dated the 17th March, 2012 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide numberG.S.R. 185(E), dated the 17th March, 2012 and last amended by notification No, 05/2014-Customs, dated the 17th February, 2014, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 92(E), dated the 17th February, 2014.