Government extends deferred customs duty payment to authorised PSUs

The scheme of deferred payment of customs duties was first introduced in November 2016 for top importers, certified as Authorized Economic Operators (AEOs)

cash, currency, notes, funds, investment, shares, growth, profit, loss, tax, money, income, earnings — In order to avail the deferred duty payment facility, the PSUs will require to register with the CBIC on the basis of a recommedation letter from a joint secretary-level officer of their administrative minsitry/department

Dilasha Seth New Delhi

2 min read Last Updated : Aug 25 2020 | 9:49 PM IST

In an effort to expedite the clearance of imports by public sector undertakings, the government has extended the deferred customs duty payments facility to them. The PSUs will be allowed to pay customs duty within 14 days of imports.

“This measure is expected to result in speedier clearance of goods imported by the PSUs, thereby helping them in their activities. In general, the duty payment is deferred by 15 days,” the Central Board of Indirect Taxes and Customs (CBIC) said in a release on Tuesday.

The scheme of deferred payment of customs duties was first introduced in November 2016 for top importers, certified as Authorized Economic Operators (AEOs). These importers are approved by the Customs on the basis of certain compliance parameters such as proper maintenance of records, secure internal controls, a good track record of legal compliance, etc. These AEOs are allowed to clear their imported goods immediately and pay the admissible customs duties within 15 days.

In order to avail the deferred duty payment facility, the PSUs will require to register with the CBIC on the basis of a recommedation letter from a joint secretary-level officer of their administrative minsitry/department, added CBIC.

The CBIC further said that as an additional facilitation exercise, it has done away with the earlier requirement of the approved AEOs having to intimate every Customs Port of their entitlement to avail the facility of deferred payment of customs duties. “This would now be handled centrally, which is expected to ease the complaince requirement of the eligible importers. This will also apply to the approved PSUs,” CBIC said.

The facility of deferred payment of customs duties is a part of CBIC’s reform ‘Turant Customs’ which envisages a faceless, contactless and paperless customs environment. “The objective is to enhance the ease of doing business and bring in more efficiency and improvement in turnaround time, ultimately leading to a reduction in the time and costs associated with the Customs clearance processes,” said CBIC.