We have placed orders for import of certain raw materials, on which the Director General of Trade Remedies (DGTR) has recommended imposition of anti-dumping duties but the Ministry of Finance has not yet given effect to the recommendation by issuing the necessary anti-dumping notification. The goods are shipped in two instalments, one of which is likely to arrive within the next 2-3 days but the other shipment may arrive after 2-3 weeks. Can we escape anti-dumping duties by filing an advance bill of entry immediately for both the shipments and getting the self-assessment done?
No. As per Section 15(1)(a) of the Customs Act, 1962, ‘the rate of duty and tariff valuation, if any, applicable to any imported goods, shall be the rate and valuation in force, in the case of goods entered for home consumption under Section 46, on the date on which a bill of entry in respect of such goods is presented under that section’. However, as per the proviso in that Section, ‘if a bill of entry has been presented before the date of entry inwards of the vessel or the arrival of the aircraft or the vehicle by which the goods are imported, the bill of entry shall be deemed to have been presented on the date of such entry inwards or the arrival, as the case may be’. So, you cannot escape anti-dumping duty by filing advance bill of entry if the anti-dumping notification is issued before grant of entry inward for the vessel.
We have imported certain inputs in our EOU. The same inputs are urgently required by a DTA party holding an advance authorisation. Can we supply the imported inputs as such to the DTA party against the advance authorisation, without reversing the basic customs duty (BCD) or by claiming deemed export benefits?
No. As per Para 7.01(i) of the FTP, supply of goods as specified in Para 7.02 shall be regarded as deemed exports provided the goods are manufactured in India. Besides, as per Para 6.14(a)(ii) of the FTP, ‘in case an EOU/EHTP/STP/BTP unit is unable to utilise goods and services imported or procured from DTA, it may be disposed of in DTA with intimation to Customs authorities on payment of applicable duties and/ or taxes and compensation cess. In addition, exemption of duties of Customs leviable under First Schedule of the Customs Tariff Act, 1975 availed, if any on the goods , at the time of import will also be payable.
Are our bankers correct in asking us to liquidate the balances in our EEFC account because we do not have any immediate commitments to remit any foreign exchange.
Yes. Para A.6(iv)(a) of RBI Master Direction no.16/2015-16 dated 1st January 2016 says that the sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilisation of the balances for approved purposes or forward commitments.
Business Standard invites readers’ SME queries related to GST, export and import matters. You can write to us at smechat@bsmail.in
Business Standard invites readers’ SME queries related to GST, export and import matters. You can write to us at smechat@bsmail.in