Imposition and Circumstances for Levy of Custom Duty

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Imposition and Circumstances for Levy of Custom Duty, here we are providing Complete details for Levy of Custom Duty. In this article you can find complete details for Imposition and Circumstances for Levy of Custom Duty like – Determining Factors, Points and Circumstances of Levy, Charging Section [ Section 12 ], Distinction Between Home Consumption & Warehousing, Duty Liability in some special circumstances, Concessional Duty payable, Conditions to be satisfied for Concessional Payment, Exemption available etc. Now you can scroll down below and check more details for “Imposition and Circumstances for Levy of Custom Duty”

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Imposition and Circumstances for Levy of Custom Duty

Determining Factors :-

  1. Goods, Point, & Circumstances
  2. Procedure, Mechanism & Organization
  3. Exemptionon grounds of Morality or Equality
  4. Levied on Goods – Not on Person Importing goods

Points and Circumstances of Levy

  1. Charging Section [ Section 12 ]
    • No General Exemption on Goods imported by Govt, Specific notifications are issued.
    • Levied on Goods – Imported or Exported – Such rates as may be prescribed
    • Govt Goods treated at par with Non Govt Goods
  2. Distinction Between Home Consumption & Warehousing :-
Home ConsumptionWarehousing
1.Collection of Duty is immediate.1.Collection of Duty is Deffered.
2.Revenue is immediate so no execution of Bond.2.Revenus will be safeguarded by Execution of a Bond by Binding himself for a sum equal to 2 times amount.
3.No Liability to pay interest, rent and Storage charges.3.Liability to pay interest, rent and Storage charges.

3. Duty Liability in some special circumstances :-

  • Re-importation of goods manufactured / produced in India [Sec 20]
  • Treated on Par with other goods, which are otherwise imported

Must Read – Some Important Definitions Under Customs Act, 1962

Concessions in this Regards :-

1. Concessional Duty payable :-

Description of GoodsAmt of Import Duty
1.Export under Duty Drawback, Rebate, Bond without payment of DutyAmount of Incentive Received
2.Export for repairs abroadFair cost of Repairs

Conditions to be satisfied for Concessional Payment :-

  1. Time limit is 3 years. Extendable upto 5 years.
  2. Goods exported and the re-importation must be same.
  3. There should be no change in the ownership of goods.

2. Exemption available :-

Goods manufactured in India & Re-importedTime limit for re-importationOther conditions to be satisfied
Repairs or for ReconditioningTo Nepal – 10 yearsOthers – 3 yearsa.Must be Re-exported within 6 months of re-importationb.AC/DC must be satisifed as regards to identity of goodsc.Execution of a bond
a.    Reprocessingb.    Refiningc.    Remaking

d.   Any process

1 year

Note – The exemption is available even if quantity re-imported is short or  low in quantity as long as nature and variety of goods is same.

Goods Derelict, Wreck etc. [Sec 21]

  • Shall be dealt with as if they were imported into India unless it is shown to the saisfaction of proper officer that they are entitled for duty free under this Act.
  • The concept of “goods brought into India” is not only confined to goods which are intentionally brought into India but things brought into India out of compulsion are also treated on par with the imported goods.

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