r qu ntly ask qu stions ( aq) · 2018. 5. 30. · q.3 is there any other additional duty of customs...

FREQUENTLY ASKED QUESTIONS (FAQ)

ON THE PROVISIONS OF THE

CUSTOMS TARIFF ACT, 1975

Prepared by: K.Vijaya Kumar, Asst.Director, RMCC, Mumbai

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For departmental use only

Introduction

Generally, Customs Tariff is mostly referred to know the rates of customs duty (Basic

Customs Duty) for various imported goods listed in the First Schedule of the Customs

Tariff Act, 1975 (CTA, for short).

However, we tend to ignore the provisions of the CTA for the dominant reason that

we required to classify and determine duitiability (assess) for the imported goods by

making reference to the rates of BCD. There is no immediate requirement to refer to

the provisions of the CTA.

Through the present FAQ, an earnest attempt has been made to highlight the

importance of the provisions of the Customs Tariff Act, 1975. Needless to say, that

the provisions of the CTA are equally significant for the assessing officers and for

other stake holders so as to know and also to comply with the provisions of the CTA.

At the outset, it is made clear that the present FAQ is limited only to the extent of the

provisions (sections) of the CTA but it doesn’t include any questions on rates of BCD

or on classification of goods.

Q1. Section 2 of the CTA says that the rates at which duties of customs

shall be levied under the Customs Act, 1962 are specified in the First and

Second Schedules. Under which Section of the Customs Act, 1962 , the

“duties of customs” have been referred to ?

Ans: As per Section 12 of the Customs Act, 1962, duties of customs shall be

levied at such rates as may be specified under the Customs Tariff Act, 1975 or

any other law for the time being in force, on goods imported into, or exported

from, India. The duties of customs as referred in the Section 12 are popularly

known as “Basic Duty of Customs” or BCD.

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Before going to next question, let us have a cursory look at the provisions of

the Customs Tariff Act, 1975 as stated below:

SECTION 1. Short title, extent and commencement.

SECTION 2. Duties specified in the Schedules to be levied

SECTION 3. Levy of additional duty equal to excise duty, sales tax, local taxes

and other charges.

SECTION 4. Levy of duty where standard rate and preferential rate are specified.

SECTION 5. Levy of a lower rate of duty under a trade agreement.

SECTION 6. Power of Central Government to levy protective duties in certain

cases.

SECTION 7. Duration of protective duties and power of Central Government to

alter them.

SECTION 8. Emergency power of Central Government to increase or levy export

duties.

SECTION 8A.Emergency power of Central Government to increase import duties.

SECTION 8B.Power of Central Government to impose safeguard duty.

SECTION 9. Countervailing duty on subsidized articles.

SECTION 9A Anti- dumping duty on dumped articles.

SECTION 9AARefund of anti-dumping duty in certain cases.

SECTION 9B. No levy under section 9 or section 9A in certain cases.

SECTION 9C. Appeal.

SECTION 10. Rules to be laid before Parliament.

SECTION 11. Power of Central Government to alter duties under certain

circumstances.

SECTION 11APower of Central Government to amend First Schedule.

SECTION 12. Repeal and saving.

SECTION 13. Consequential amendment of Act 52 of 1962.

Q.2 Are the Additional Duty of Customs equal to excise and CVD the one

and the same?

Ans: Yes. It is also popularly known as CVD. The additional duty of customs is

levied under Section 3 (1) of the CTA equal to the excise duty for the time

being leviable on a like article if produced or manufactured in India.

Q.3 Is there any other additional duty of customs levied under Section

3(3) of the Customs Tariff Act (CTA)?

Ans: Yes. Imported articles can also be subjected to an additional duty under

Section 3 (3) of the CTA, representing the portion of the excise duty leviable

on such raw materials, components and ingredients.

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Q.4. What about the SAD ?

Ans: The additional duty of customs levied under Section 3(5) of the CTA is

popularly known as SAD or Special Additional Duty. The said section

empowers the imposition of the additional duty as would counter-balance the

sales tax, value added tax (VAT), local tax or any other charges at a rate not

exceeding four per cent of the value of the imported article.

This duty is subsumed in the GST with effect from 1st July, 2017.

Q.5 What is the main change after introduction of the GST with

reference to CVD or additional duty of customs equal to excise or SAD?

Ans: There are legislative changes in the Central Excise Tariff Act, 1985

(CETA) and the Customs Act, and the CTA, 1975 though the Taxation Laws

(amendment) Act, 2017. As you are aware, the CVD is now replaced by IGST

on imported goods except those goods specified in the Fourth Schedule of

the CETA, 1985 which contains tariff items of Chapter 24 and Chapter 27 that

too limited to Tobacco products, Cigarettes and Petroleum products.

New Fourth Schedule is inserted in CETA to provide for classification and

duty rates for specified petroleum and tobacco products which will continue

to attract central excise duty even after introduction of GST.

Q.6 What is CENVAT ?

Ans: It may be noted that the duty to be called Central Value Added Tax

(CENVAT) on all excisable goods manufactured in India (excluding SEZs) at

specified rates prescribed in the Fourth Schedule to CEA, 1985 is introduced

under the Taxation Laws (amendment) Act, 2017.

Q.7 For what levies, new sub-section (7) and sub-section (9) are inserted

to Section 3 of the Customs Tariff Act, 1975 ?

Ans: Imported article shall, in addition, be liable to integrated tax and GST

compensation cess as per Section 3(7) and Section 3(9) of the CTA.

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Provisions of sub-section (7) and sub-section (9) of

Section 3 of the CTA, 1975:

(7) Any article which is imported into India shall, in addition, be

liable to integrated tax at such rate, not exceeding forty per cent.

as is leviable under section 5 of the Integrated Goods and

Services Tax Act, 2017 on a like article on its supply in India, on

the value of the imported article as determined under sub-

section (8) or sub-section (8A), as the case may be.

(9) Any article which is imported into India shall, in addition, be

liable to the goods and services tax compensation cess at such

rate, as is leviable under section 8 of the Goods and Services

Tax (Compensation to States) Cess Act, 2017 on a like article

on its supply in India, on the value of the imported article as

determined under sub-section (10) or or sub-section (10A), as

the case may be.

Q.8 What does Section 5 of the IGST Act, 2017 provide for ?

Ans: The proviso to Section 5 of the IGST Act says that the integrated tax on

goods imported into India shall be levied and collected in accordance with the

provisions of section 3 of the Customs Tariff Act, 1975 on the value as

determined under the said Act at the point when duties of customs are levied

on the said goods under section 12 of the Customs Act, 1962.

Q.9 What is the value for the purpose of calculating Integrated Tax and

for GST compensation cess is determined ?

Ans: As per amended provisions of CTA, the value for the levy of Integrated

Tax has to be determined under sub-section (8) or sub-section (8A) of Sec.3.

The value for compensation cess is required to be determined under sub-

section (10) or or sub-section (10A) of Section 3.

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Q.10 Under what provisions, the value of an imported article is

determined for levying IGST and GST cess ?

Ans: The value of the imported article determined under sub-section (1) of

section 14 or the tariff value of such article fixed under sub-section (2) of the

Section 14 of the Customs Act, 1962 read with Section 3(8) or 3(8A) and

Section 3 (10) or 3(10A) of the Customs Tariff Act, 1975 as the case may be.

Q.11 How to calculate Integrated Tax or IGST on imported goods ?

Ans: As per sub-section (8) of Section 3, For the purposes of calculating the

integrated tax on any imported article where such tax is leviable at any

percentage of its value, the value of the imported article shall be the

aggregate of—

(a) the value of the imported article determined under sub-section (1) of

section 14 of the Customs Act, 1962 or the tariff value of such article fixed

under sub-section (2) of that section, as the case may be; and

(b) any duty of customs chargeable on that article under section 12 of the

Customs Act, 1962, and any sum chargeable on that article under any law

for the time being in force as an addition to, and in the same manner as, a

duty of customs, but does not include the tax referred to in sub-

section (7) or the cess referred to in sub-section.

In other words, the value for the purpose of calculating Integrated Tax is the

aggregate of:

(a) Assessable Value or Tariff Value.

(b) BCD

(c) Any sum chargeable under any other law.

Q.12 Any sum chargeable under any other law means ?

Ans: Any sum would include education cess or higher education cess as

well as anti-dumping and safeguard duties. The inclusion of anti-dumping

duties and safeguard duty in the value for levy of IGST and Compensation

Cess is an important change.

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Q.13 How to calculate GST Compensation Cess on imported goods ?

Ans: As per sub-section (10) of Sec.3 of the CTA, For the purposes of

calculating the GST compensation cess on any imported article where such

cess is leviable at any percentage of its value, the value of the imported

article shall be the aggregate of—

(a) the value of the imported article determined under sub-section (1) of

section 14 of the Customs Act, 1962 or the tariff value of such article fixed

under sub-section (2) of that section, as the case may be; and

(b) any duty of customs chargeable on that article under section 12 of the

Customs Act, 1962, and any sum chargeable on that article under any law

for the time being in force as an addition to, and in the same manner as, a

duty of customs, but does not include the tax referred to in sub-section

(7) or the cess referred to in sub-section (9).

Here also, excluding integrated tax and compensation cess, the value for the

purpose of calculating compensation cess is the assessable value (or tariff

value) plus BCD and Education cess, ADD and safeguard duty.

The expression “ Any sum chargeable on that article under any law for the

time being in force as an addition to, and in the same manner as, a duty of

customs” has to be noted. Therefore, any sum when charged as a duty of

customs shall be included.

Q.14 Are the provisions of the Customs Act, 1962 applicable to duties

collected under the CTA ?

Ans: Yes. According to Section 3 (12) of the CTA, the provisions of the

Customs Act, 1962 and the rules and regulations made thereunder, including

those relating to drawbacks, refunds and exemption from duties shall, so far

as may be, apply to the duty or tax or cess, as the case may be, chargeable

under this section as they apply in relation to the duties leviable under that

Act.

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Q.15 What are the new sub-sections inserted to Section 3 of the CTA

vide Finance Act, 2018 ?

Ans: New sub-Section (8A) and sub-section (10A) to Section 3 are inserted

vide Finance Act, 2018.

Q.16 What is the value for the purpose of calculating Integrated Tax and

Compensation Cess, in the case of warehoused (Bonded) goods ?

Ans: As per section 3 (8A)/ 3(10A), when the bonded goods are sold to any

person before clearance for home consumption or export, the value of such

goods for the purpose of calculating the integrated tax and compensation

cess shall be,—

(a) where the whole of the goods are sold, the value determined under sub-

section (8)/sub-section (10) or the transaction value of such goods,

whichever is higher; or

(b) where any part of the goods is sold, the proportionate value of such goods

as determined under sub-section (8)/sub-section (10) or the transaction

value of such goods, whichever is higher.

In other words, the value of warehoused goods when sold before clearance

shall be higher of transaction value (actual amount paid or payable as

consideration for sale of goods) or the value determined under the Customs

Tariff Act (Assessable value under Customs + BCD).

Q.17 What is the method of calculation of Integrated Tax or

Compensation cess for warehoused goods prior amendment by insertion

of sub-section 8A and 10A ?

Ans: Prior to the amendment or insertion of new sub-sections, the value of

imported goods, for purposes of charging customs duty, Integrated Tax and

Compensation Cess, was determined as per Section 14 of the Customs Act at

the time of import i.e. at the time of filing of the into-bond Bill of Entry. Any

costs incurred after the import of goods, or any margin on sale of bonded

warehouse goods cannot be added to the value of the goods, for the purpose

of levy of duties of customs at the stage of ex-bonding.

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Q.18 What is the value for the purpose of charging Integrated Tax or

Compensation Cess when warehoused goods sold more than once before

clearance ?

Ans: As per proviso to Section 3 (8A) and proviso to Section 3(10A), it

provides that where the whole of the warehoused goods or any part thereof

are sold more than once before such clearance for home consumption or

export, the transaction value of the last such transaction shall be the

transaction value.

Q.19 What is the value for the purpose of charging Integrated Tax or

Compensation Cess when warehoused goods remained unsold ?

Ans: As per second proviso Section 3 (8A) and 3(10A), it provides that in

respect of warehoused goods which remain unsold, the value or the

proportionate value, as the case may be, of such goods shall be determined in

accordance with the provisions of sub-section (8)/sub-section (10).

In respect of warehoused goods which remained unsold, the value is

continued to be same as determined earlier under Section 3(8) or Section

3(10), as the case may be, for the purpose of calculating IGST or

Compensation cess.

For the purpose of these sub-sections (8A& 10A), the expression “transaction

value”, in relation to warehoused goods, means the amount paid or payable

as consideration for the sale of such goods.

Q.20 What is the effective of amendment in respect of warehousing

goods ?

Ans: After the amendment, BCD shall continue to be charged on the same

value under Section 14 of the Customs Act. However, Integrated Tax and

Compensation Cess shall be charged on the value with the addition of any

margin earned on bonded warehouse sale.

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Q.21 Are duties levied and collected under Section 3 of the CTA, in

addition to any other duty or tax or cess ?

Ans: Yes. As per Section 3 (11), the duty or tax or cess, as the case may be,

chargeable under this section shall be in addition to any other duty or tax or

cess, as the case may be, imposed under this Act or under any other law for

the time being in force.

Q.22 How many sub-sections are there in Section (3) of the CTA ?

Ans: It is the largest Section amongst in the Customs Tariff Act, 1975 with

fourteen sub-sections in number including new sub-sections (8A) and (10A).

Sub-sections of Section 3 at a glance:

Section 3(1)…Additional duty of customs equal to excise duty (CVD)

Section 3(2)…Method of Computation of CVD

Section 3(3)…Additional duty equal to raw material, components, etc.….

Section 3(4)…Procedure to be followed while making rule under Section 3(3)

Section 3(5)…Additional duty to equal to the sales tax, VAT, local tax or

any other charges.(SAD)

Section 3(6)…Method of Computation of SAD

Section 3(7)…Levy of Integrated Tax or IGST

Section 3(8)…Method of computation of IGST or Integrated Tax.

Section 3(8A).Value for the levy of IGST for warehoused goods.

Section 3 (9).. Levy of GST compensation cess.

Section 3(10). Method of computation of GST cess

Section 3(10A) Computation of Compensation cess on warehoused goods

Section 3(11). Duties to be charged as extra.

Section 3 (12).Applicability of provisions of the Customs act, rules….

Q.23 What are the charging sub-sections within Section 3 of CTA ?

Ans: The duty referred to in sub-sections (1), (3), (5), (7) and (9) of Section 3

provides for levy of three Additional duty of Customs (CVD, Equivalent to Raw

material, SAD), Integrated Tax and the GST compensation cess respectively.

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Q.24 What provisions, does Section 4 of the CTA contain?

Ans: The subject provisions deals with preferential rate of duty, rules

framed for this purpose, and the power of the Central Govt. to discontinuing,

increasing and decreasing the preferential rates.

Unless the owner of the article claims at the time of importation that it is

chargeable with a preferential rate of duty, the duty to be levied and collected

shall be at the standard rate. Therefore, burden shifts on the owner of goods

to claim preferential rate notified at the time of imports or else the duty would

be levied at standard rate.

Q.25 Can a lower rate of duty be claimed under a trade agreement or

FTA?

Ans: In pursuance of a Free Trade Agreement (FTA) between India and a

Foreign Country, a lower duty (as notified) be charged on an imported article

than that of standard rate, if the article was produced or manufactured in a

foreign country or territory in accordance with the rules framed. The owner

has to make a claim at the time of the importation, with supporting evidence

for an assessment at the appropriate lower rate as per provisions of Sec. 5.

If any question arises whether any trade agreement applies to any country or

territory, or whether it has ceased to apply to India or any foreign country or

territory, it shall be referred to the Central Government for decision and the

decision of the Central Government shall be final and shall not be liable

to be questioned in any court of law.

Courts have no jurisdiction to decide the said question.

Q.26 What are the other duties levied under the provisions of the

Customs Tariff Act, 1975 (CTA) ?

Ans: The other duties are:

Provision under CTA Name of the duty

Section 6 Protective duty

Section 8B Safeguard duty

Section 9 Countervailing duty on subsidized articles

Section 9B Anti-dumping duty on dumped articles

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Q.27 What are the provisions that deals with the protective duty ?

Ans: Section 6 of the CTA empowers the Central Government to impose a

protective duty upon the recommendation of the Tariff Commission, if the

emergency circumstances exist to provide for the protection of the interests of

any industry established in India. Further, section 7 deals with the duration of

protective duties and power of Central Government to alter them.

Q.28 Whether the Tariff Commission is constituted as per provisions of

the CTA ?

Ans: No, the Tariff Commission for the purpose of levying Protective Duty is

constituted under the provisions of the Tariff Commission Act, 1951.

Q.29 Does the Central Government has any emergency powers to

increase or levy export duty?

Ans: The Central Government may, by notification in the Official Gazette,

direct an amendment of the Second Schedule to be made so as to provide for

an increase in the export duty leviable or, as the case may be, for the levy of

an export duty, on that article.

Section 8A of the Customs Tariff Act, 1975

SECTION 8A. Emergency power of Central Government to

increase import duties. — (1) Where in respect of any article

included in the First Schedule, the Central Government is satisfied

that the import duty leviable thereon under section 12 of the

Customs Act, 1962 (52 of 1962) should be increased and that

circumstances exist which render it necessary to take immediate

action, it may, by notification in the Official Gazette, direct an

amendment of that Schedule to be made so as to provide for an

increase in the import duty leviable on such article to such extent

as it thinks necessary :

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Q.30 Whether “ BCD rates by tariff” on imported goods can be

increased by the Central Government?

Ans: Yes. It may be noted from the provisions of Section 8A of the Customs

Tariff Act that the Central Government has emergency powers to increase BCD

on any articles included in the First Schedule.

The Central Government in exercise of the powers conferred under Section

8A(1) may issue a notification increasing the import duty leviable on such

article to such extent as it thinks necessary.

Q.31 Any recent instance of increase in the BCD by the Central

Government ?

Ans: Notification No.45/2018-Customs dated 23.05.2018 is the notification

issued under Section 8A (1) of the CTA.

For better appreciation, the text of the said notification is reproduced as

below:

G.S.R. (E). - Whereas the Central Government on being satisfied that the import duty

leviable on goods falling under heading 0802 31 00 and 2106 10 00 of the First

Schedule to the Customs Tariff Act, 1975 (51 of 1975), should be increased and that

circumstances exist which render it necessary to take immediate action.

Now, therefore, in exercise of the powers conferred by sub-section (1) of section

8A of the said Customs Tariff Act, the Central Government, hereby directs that the

First Schedule to the said Customs Tariff Act, shall be amended in the following

manner, namely:-

In the First Schedule to the said Customs Tariff Act,-

(i) in Section II, in Chapter 8, against tariff item 0802 31 00, for the entry in

column (4), the entry "100%" shall be substituted.

(ii) in Section IV, in Chapter 21, against tariff item 2106 10 00, for the entry in

column (4), the entry "40%" shall be substituted.

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Levying of Safeguard duty under Section 8B of the

CTA

SECTION 8B. Power of Central Government to impose safeguard duty. — (1)

If the Central Government, after conducting such enquiry as it deems fit, is

satisfied that any article is imported into India in such increased quantities

and under such conditions so as to cause or threatening to cause serious

injury to domestic industry, then, it may, by notification in the Official

Gazette, impose a safeguard duty on that article :

Q.32 Describe briefly about Director General of Safeguard (DGS).

The Director General of Safeguards under the Department of Revenue,

Ministry of Finance is presently mandated to investigate the existence of

"serious injury" or "threat of serious injury” to domestic industry as a

consequence of increased import of an article into India and to submit his

findings to the Central Government along with recommendations regarding

the amount of duty and period of levy of duty which if levied would be

adequate to remove the injury or threat of injury to the domestic industry.

The domestic law to implement Safeguard measures has been enacted under

Section 8B of the Customs Tariff Act, 1975. The Customs Tariff (Identification

and Assessment of Safeguard Duty) Rules, 1997 govern the procedural

aspects.

Q.33 Whether 100% Export Oriented Undertaking (EOU) or Special

Economic Zone (SEZ ) is exempted from the payment of Safeguard duty ?

Ans: Yes. As per provisions of Section 8B (2A) of the CTA, Safeguard duty

imposed shall not apply to articles imported by a hundred per cent export-

oriented undertaking or a unit in a special economic zone unless,—

(i) specifically made applicable in such notifications or such impositions, as

the case may be; or

(ii) the article imported is either cleared as such into the domestic tariff area

(DTA) or used in the manufacture of any goods that are cleared into the

DTA.

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Creation of Directorate General of Trade

Remedies (DGTR) in Department of

Commerce.

The Government of India carried out an

Amendment to the Government of India

(Allocation of Business) Rules, 1961 on May 7, 2018

substituting “Directorate General of Trade

Remedies” in place of “Directorate General of

Anti-Dumping and Allied Duties” in Department of

Commerce. This has paved way for creation of an

integrated single umbrella National Authority to be

called the Directorate General of Trade Remedies

(DGTR) for providing comprehensive and swift

trade defence mechanism in India.

2. Currently, the Directorate General of Anti-

dumping and Allied Duties (DGAD) deals with

anti-dumping and CVD cases, Directorate General

of Safeguards (DGS) deals with safeguard

measures and DGFT deals with quantitative

restriction (QR) safeguards. The DGTR will bring

DGAD, DGS and Safeguards (QR) functions of

DGFT into its fold by merging them into one single

national entity. DGTR will deal with Anti-

dumping, CVD and Safeguard measures.

3. The DGTR will function as an attached office

of Department of Commerce. The

recommendation of DGTR for imposition of Anti-

dumping, countervailing & Safeguard duties would

be considered by the Department of Revenue.

DGTR

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Levy of CVD on subsidized articles under

Section 9 of the CTA.

SECTION 9. Countervailing duty on subsidized articles. — (1) Where

any country or territory pays, bestows, directly or indirectly, any

subsidy upon the manufacture or production therein or the

exportation therefrom of any article including any subsidy on

transportation of such article, then, upon the importation of any such

article into India, whether the same is imported directly from the

country of manufacture, production or otherwise, and whether it is

imported in the same condition as when exported from the country of

manufacture or production or has been changed in condition by

manufacture, production or otherwise, the Central Government may,

by notification in the Official Gazette, impose a countervailing duty

not exceeding the amount of such subsidy.

Q.34 What are the Countervailing duties (CVDs)?

Ans: Countervailing duties (CVDs), also known as anti-subsidy duties, are

trade import duties imposed to neutralize the negative effects of subsidies.

They are imposed after an investigation finds that a foreign

country subsidizes its exports, injuring domestic

producers in the importing country.

It is imposed in accordance with the GATT Article VI and

the GATT Agreement on Subsidies and Countervailing

Measures.

Q.35 Give one example on the levy of CVD in India.

Ans: The Notification No.1/2017-Customs (CVD) dated 07.09.2017 the

Govt. has imposed CVD on “Certain Hot Rolled and Cold Rolled Stainless Steel

Flat Products” falling under tariff heading 7219 or 7220 of the First Schedule

to the Customs Tariff Act.

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Anti-dumping duty (ADD) under Section 9A of

the Customs Tariff Act, 1975

SECTION 9A . Anti- dumping duty on dumped articles. — (1) Where any article is exported by an exporter or producer from any country or territory (hereinafter in this section referred to as the exporting country or territory) to India at less than its normal value, then, upon the importation of such article into India, the Central Government may, by notification in the Official Gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to such article.

Q.36 What is Anti-Dumping Duty (ADD)?

Ans. Dumping is said to occur when the goods are exported by a country to

another country at a price lower than its normal value. This is an unfair trade

practice which can have a distortive effect on international trade. Anti

dumping is a measure to rectify the situation arising out of the dumping of

goods and its trade distortive effect. Thus, the purpose of anti-dumping duty

is to rectify the trade distortive effect of dumping and re-establish fair trade.

The use of anti-dumping measure as an instrument of fair competition is

permitted by the WTO. In fact, anti-dumping is an instrument for ensuring fair

trade and is not a measure of protection per se for the domestic industry. It

provides relief to the domestic industry against the injury caused by dumping.

Q.37 Is 100% EOU required to pay ADD ?

Ans: No, As per Section 9A (2A) of the CTA, ADD shall not apply to articles

imported by a hundred per cent, export-oriented undertaking unless, —

(i) specifically made applicable in such notifications or such impositions, as

the case may be; or

(ii) the article imported is either cleared as such into the domestic tariff area

or used in the manufacture of any goods that are cleared into the

domestic tariff area (DTA).

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Q.38 Is the importer entitled for the refund of ADD ? If so what cases?

Ans: As per provisions of Section 9AA, an importer proves to the

satisfaction of the Central Government that he has paid anti-dumping duty

imposed on any article, in excess of the actual margin of dumping in

relation to such article, the Central Government shall, as soon as may be,

reduce such anti-dumping duty as is in excess of actual margin of dumping so

determined, in relation to such article or such importer, and such importer

shall be entitled to refund of such excess duty.

Q.39 Shall an article be subjected to both countervailing duty and anti-

dumping duty to compensate for the same situation of dumping or

export subsidization?

Ans: No. As per Section 9B, no article shall be subjected to both

countervailing duty and anti-dumping duty to compensate for the same

situation of dumping or export subsidization.

Q.40 Can there be any appeal against determination of subsidy or

dumping?

Ans: Yes. An appeal under Section 9C lies before CESTAT against the order of

determination or review thereof regarding the existence, degree and effect of

any subsidy or dumping in relation to import of any article.

Q.41 Are the rules framed under the provisions of CTA are required to be

laid down before the Parliament?

Ans: Yes. Every rule made under this Act shall be laid, as soon as may be after

it is made, before each House of Parliament as per the provisions of Sec.10.

Q.42 Can the Central Government in pursuance of an agreement entered

with a foreign Government increase or reduce the duties?

Ans: The Central Government, as per Section 11, if satisfied that it is

necessary so to do for the purpose of giving effect to any agreement entered

into before the commencement of this Act with a foreign Government, it may,

by notification increase or reduce the duties referred to in section 2 to such

extent as each case may require .

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Q.43 Can the Central Government amend the First Schedule of the CTA ?

Ans: The Central Government can amend the First Schedule by issuing a

notification under Section 11A (1) of the CTA. However, such amendment

shall not alter or affect in any manner the rates in respect of goods at

which duties of customs shall be leviable on the goods under the Customs

Act, 1962.

Q.44 Give one instance of such amendment or Notification.

Ans: The Notification No.22/2018-Customs (NT) dated 20.03.2018.

For better appreciation, the text of said notification is reproduced as under:

G.S.R. ........…. (E). - In exercise of the powers conferred by sub-section (1) of

section 11A of the Customs Tariff Act, 1975 (51 of 1975), the Central

Government, on being satisfied that it is necessary in the public interest so to

do, hereby makes the following further amendments in the First Schedule to

the Customs Tariff Act, 1975,namely: -

In the said First Schedule, in Chapter 7, for tariff item 0713 20 00 and the

entries relating thereto, the following shall be substituted, namely: -

“ 0713 20 - Chickpeas (garbanzos):

0713 20 10 - - - Kabuli chana kg. 60 % 20 %

0713 20 20 - - - Bengal gram (desi chana) kg. 60 % 20 %

0713 20 90 - - - Other kg. 60 % 20 %”

Q.45 What is the main difference between the provisions of Section 8A

and Section 11A ?

Ans: In the said Notification No.22/2018-Customs (NT), it may be noted that

certain new tariff entries are added but there is no change in the existing rates

of BCD in the First Schedule. The Central Government has emergency power

to increase the BCD rate u/s 8A whereas Section 11A of the CTA without

altering rates of BCD provides for amendment in the other parameters.

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r qu ntly ask qu stions ( aq) · 2018. 5. 30. · q.3 is there any other additional duty of customs...

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