Budgetary Changes in Customs 2013-2014

CHANGES IN CUSTOMS ACT, 1969

 THROUGH FINANCE BILL 2013-14

 Section 2       Definitions

• Scope of definition of ‘Goods Declaration’ has been enlarged to cover ‘transhipment of goods’ (TP).

Section 3DDD          Directorate General of Input Output Co-efficient Organization.

• A new section has been inserted to create Directorate General of IOCO.

Section 14-A   Provision of security and accommodation at customs-ports, etc.

• Section 14-A has been substituted. According to the substituted section, port authorities or agencies managing or owning customs port, customs airport or land customs station or a container freight station shall be responsible to provide proper security besides providing accommodation to the customs authorities. These agencies / authorities are also liable to entertain ‘delay and detention certificate’ issued by an officer not below the rank of Assistant Collector.

Section 81     Provisional Determination of Liability

• Post-dated cheque will not be accepted for securing deferential amount of duty. Deferential amount of duty will be secured through bank guarantee or pay order only.

Section 179   Power of Adjudication

• Section 179 relates to power of adjudication of various custom officers. There was however no specific mention of export violations. Now a proviso has been added to assign monetary limit in respect of export goods. The jurisdiction will be in terms of FOB value and twice the respective monetary limit laid down in sub-section (1).

Section 196   Reference to the High Court

• An amendment has been made in the section and now Director of Valuation can also file Reference against the order of the Appellate Tribunal.

CHANGES THROUGH NOTIFICATION

SRO 495(I)/2013 dated 12.06.2013

• Following amendments have been made in SRO 655(I)/2006 dated 22.06.2006 relating to exemption from customs duty for vendors of automotive sector.

a)            A Proforma has been prescribed for providing information to the EDB in respect of import, local procurement and consumption of input materials and production and supply of components and assemblies.

b)            All imports under this notification shall only be cleared through Customs Computerized System.

(w.e.f. 13.06.2013)

SRO 496(I)/2013 dated 12.06.2013

• Following amendments have been made in SRO 656(I)/2006 dated 22.06.2006 relating to exemption from customs duty for OEMs of Automotive Sector:

a)            Facility of concessionary import have been withdrawn for OEMs of parts and components of auto rickshaw, three wheeler cargo loader and motorcycles.

b)            All imports under this notification shall only be cleared through Customs Computerized System.

(w.e.f. 13.06.2013)

SRO 497(I)/2013 dated 12.06.2013

• Following amendments have been made in SRO 567(I)/2006 dated 05.06.2006 relating to General and Conditional Exemption from customs duty on import of raw materials, components and other goods (Non-survey based) :

a)            Preparations (Chemicals) put up in retail packing for agriculture (PCT heading 3808.9160), kraft papers (PCT heading 4804.1900 and 4805.1100), flat rolled products of stainless steel (PCT heading 7219.9090), Silicon electrical steel sheet (PCT heading 7226.1900) and LCD panels in CBU forms will no more be entitled for concessionary import under this notification.

b)            Exemption of customs duty on import of Excepients / Chemicals by pharmaceutical sector has been allowed as per requirements determined by the Drug Regulatory Authority.

c)             Exemption of customs duty on import of packing materials or raw-materials for packing by pharmaceutical sector has been allowed as per requirements determined by the IOCO.

SRO 498(I)/2013 dated 12.06.2013

• Certain amendments have been made in SRO 575(I)/2006 dated 05.06.2006 relating to .

a)            Concessionary import of land levelling machinery and equipment, tillage, seeding and planting machinery and equipment, fertilizer and plant protection equipment, high efficiency irrigation and drainage equipment, harvesting and threshing machinery, post-harvest handling and processing machinery, dairy, livestock and poultry, machinery and green house farming and other green house equipment is now subject to the condition that the same is used for agriculture sector. Previously these items were entitled for concessionary import without any condition.

b)            Energy saving tube lights (PCT heading 8539.3920) have been exempted from customs duty and sales tax.

(w.e.f. 13.06.2013)

SRO 499(I)/2013 dated 12.06.2013

• Customs duty, sales tax and income tax has been exempted on import of hybrid electric vehicles (PCT heading 87.03) to the following extent:-

a)      Upto 1200CC           100%

b)     1201 to 1800 CC     50%

c)     1801 to 2500 CC     25%

(w.e.f. 13.06.2013)

 

CHANGES IN CUSTOMS TARIFF

A)               Customs Duty on import of “bio re-absorbable vascular scaffold” (heart stents) has been decrease to 0%. Stunts are now duty free on imports.

B)               Customs duty on office or school supplies has been reduced from 25% to 20%.

C)               Customs duty on import of water treatment & purifying machinery and equipment has been reduced from 20% to 15%.

D)               Procedure for re-import of machinery & equipment sent abroad for repair etc by industrial importers has been simplified.

E)                Customs duty has been reduced on import of Medium Density Fiber (MDF) Board.

F)                 Customs duty on import of betel nuts has been increased from 15% to 20% and on betel leaves from Rs.200/kg to Rs. 300/kg.