CA FINAL NOTES FOR CUSTOMS (IDT)

THIS IS STRICTLY BEEN PROVIDE THAT ITS NOTS A FULL SYLLABUS BUT YA IF U ALL READ THIS IT BEEN VERY HELP 2 UNDERSTAND THE CHAPTER CUSTON IN BRIEF MANNER:-

In case when good imported are cleared 4 home consumption then

Rate of duty = entry date or bill of exchange – later

Exchange rate = bill of exchange

In case when good imported are deposited into warehouse then

Rate of duty = into bond bill of entry

Exchange rate = exchange rate

TYPES OF DUTY

1. basic custom duty
2. protective duty - imposed by central govt. on the recommendation by tariff commissioner to protect the domestic market from bulk import in order to cause damage
3. Safeguard duty – imposed by the central govt if satisfy that the goods have been imported at bulk quantity in order to cause serious damage to the market. Except if 3% on single and 9% on whole brought up from developing.

It can be imposed provisssionaly if c.g is satisfied that the goods have been brought in bulk quantity and within 200 days to insure that it cause damage to the domestic market otherwise return the duty.

It is applied for 6 years + 4 years

Not applied to 100% EOU

4. Specific safeguard duty in case goods imported from china in order to Market

Disruption and all point same as 3.

5. Countervailing Duty / Anti subsidy duty : It is imposed in case when the exporting country provide its exporter subsidy in order to sale in India accept in case of
1. export performance
2. use of domestic product in place of imported in final products
3. limited person engaged in manufacture
4. new environmental program
5. disadvantageous region

it Is applied retrospectively but not beyond 90 days, can be extended for 5 yrs

every time

6. Anti dumping duty similar to 5. except in this case the seller export goods to India

at a price lower then its market in exporter country

7. Additional Custom Duty

A. u/s 3(1) it is charged to match /balance the amount of excise duty if the imported good is manufactured in India.it is charged even if basic custom duty is free except in case when goods extracted from natural resources.

B. U/s3(2) : it is charged to balance the amount of inputs/components/ingredients to be used in notified goods.

C. U/s 3(3) – it is charged to balance the amount of vat,sales tax,octroi,and other tax relating to the sales,purchase,transport etc. on notified goods @ 4% and on jewellery @ 1%

8. APPEALs: Under custom appeal was made to cestat against the order of existence, determination, effect,degree of any subsidy etc. in relating to import/export of goods.

Appeal was made within 90 days and can be condole

Fees of Rs 15000 and for each other stay order etc. Rs500

Order was passed by confirming modifying annulling the decision

Heard by special bench

Valuation:

Transaction value: all value are to be consider except buying commission.

In computing valuation of imported goods value as on the time of importation is to be considere

Cost of transport –

Airport =always 20% of FOB

Vehicle/vesses – 20% of FOB in case when actual not known

Insuarance 1.125% on FOB if actual not known.

Labour/landing/loading /charges – Always @ 1%

IF transaction value cannot be applied then the follwing rule will apply

1. IDENTIFY GOODS: this are those imported goods which are similar in all aspect but slight difference in appearance which do not effect the price.provided purchase from same (country +preferably same buyer+ country+time + commercial level+quantity)

Adjustment of above is to be done on the basis of demonstrated evidence

Provionnally assessed value can not be taken

2. SIMILAR GOODS are those imported goods which are not similar but having same characteristic/feature and enjoy same grade/reputation etc.
3. DEDUCTED VALUE METHOD.itis used when goods imported are sold without processing withing 90 days

Value is determine :

Sale price to first commercial leveal at which highest unit sold xxxx

Reduce : profit/transport and any other cost incl processing I any xxxx

Deducted value

4. COMPUTED VALUE METHOD: value determine on the basis of cost sheet of the exporter
5. RESIDUAL VALUE: it is consistent with general principle of rule and sec 14

Following value cannot be taken:

1. minimum custom value
2. value of goods produce in India
3. value at which exporter sells in its country/exported other
4. method providing highest custom value

ABATEMENT :

A. before or during unloading of goods in India destroy or damage then

B. any imported goods other than warehoused goods destroy before examination

C. warehoused goods destroy at any time before clearance for home consumption

REMISSION

It is allow to goods destroy at any time before clearance for home consumption, relinquish of title,

Pilferedge

It is allow to goods at any time before clearance for home consumption, relinquish of title,clear for warehouse

Hence remission apply to warehouse goods but pilferedge not

SECTION TO BE READ IN FOLLOWING

1. SEC.30 : IGM/IR : igm to be submitted before arrival of Bessel and aircraft and ir to be submitted within 12 hrs of arrival of vehicle, penalty can be imposed Rs .50000.

2. SEC31 : entry inward is to be provided by the authority otherwise goods,not allowed to be unloaded except person,crew member ,perishable,hazarduous,baggage, mail baggage
3. SEC 46 : billof entry and into bond bill of entry is filled
4. Sec: 47 order for home consumption is given and if not cleared withing 5 days excl Saturday,Sunday,and other holiday then interest @15 % shall be chargeable
5. Sec 48: custodian power to sold goods if not cleared within 30 days
6. 49: take permission to keep at warehouse to save demurrage charges
7. 59 : ware house bond: executedouble duty bond, assessed or provisionally assessed, all rules to comply and will make all payment of duty,penalty,rent etc
8. 60 order for wwarehoused
9. 67 : transfer to another warehouse
10. 68 order for clearance for home consumption after filling exbond bill of entry
11. 69 exportation
12. 70 Remission in respect of notified good which are warehouse and lost due to volatility, such as menthol,aviation fuel,wine,alcoholicetc
13. 74 : duty drawback in respect of goods imported and exported without using it 98%

Personal item = 4,3,2.5,2 % p.qrt

No drawback = wearing apparel,paper,plates,xray films,unexposed cinematography films,exposed photography films approved by cencor

14. 75 : drawback in respect of imported goods used in final product

Provided

1. must be more than 50
2. either more tthan 1% of fob or 500
3. not less than market value
4. value addition must be done
5. drawback = 1/3 of market price or drawback -lower

Sec 100 : custom officer to serch person within custom area if having believe that search person has secreted any goods which are liable to confiscated

Sec 101: A prescribe officer may search any person in India if such persn has secreted any goods liable to be confiscated

Sec 105: A prescribe officer may search any premise in India if person has secreted any goods liable to be confiscated

Sec 110 : Any goods which is liable to be confiscated are to be seized and notice of such must be given within 6 month otherwise return the goods from whom it hasbeen seized. But still such goods are eligible for confiscated

Sec 124 : the goods which are seized are confiscated after given a Show cause

notice and Opportunity of being heard.

Sec 125: it provide that the redemption fine must must given to an assessee in

respect of goods other than prohibited goods however in case of prohibited goods

redemption fine may or may not be given

Sec 106 : it provide that any conveyance which is used for transferring of smuggle

goods can be stop by the officer.

Sec 115 : The conveyance which is used for smugling are to be seized and can be

confiscated

BAGGAGE:

Rate of duty & Valuation is to be done as on the date of Declaration made by the person coming with the baggage in case of accompanied baggage and in case of unaccompanied baggage when baggage comes to India or person comes with bag –whichever is later

RULE:

3. Indian citizen who comes India after traveling anywhere except china,Bhutan,Nepal,Myanmar:

No duty on personal item, 1 each mobile and laptop

Full duty on annexure I item such as above 50cigar,200 cigrates,2 ltr wine,fire arm,250 grm tobacco,

Gross Free allowance

Person with age of > 10 years – more than 3 days 25000 other wise 12000

Person with age of <=0 years – more than 3 days 6000 other wise 3000

4. . Indian citizen who comes India after traveling china,Bhutan,Nepal,Myanmar:

Gross Free allowance

Person with age of >10 years – more than 3 days 6000

Person with age of <= 10 years – more than 3 days 1500

5. professional coming to India

If comes after 3 month – house hold 12000

If comes after 3 month – professional equipment -20000 and if after 6 month 40000

6.Jewellery : only if person comes to India after 1 years

Mens= 10000

Women = 20000

7.person coming to India can enjoy Rule 3/4 and can vring gift of rs.8000

8. A person who come to India on permanent then Rule3/ 4 + personal and household item provided has come to India after 2 year and there has not avail such benefit within 3 year

9 Unaccompanied Bagggage : Same as all above provided such baggage comes to India within one month or 2 month before or 1 year before his arrival only in respect of certain circumstances

10: crew member : upto Rs 600 in respect of choclate.cosmeticsetc.

When goods which are exported are returned back in India within 1 years as sales returned then Refund of export duty shall be provided if application made within 30 days of clearance for home consumption.

SEC 26A: REFUND OF IMPORT DUTY:

Any goods which has been imported and within 30days of order of sec 47 find out to

a. not identical to the specification of the goods

b. destroy the goods in front of prescribe officer

c. relinquish the title

d. doesnot claim drawback

e. re-import

Claim for the refund was made within