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FIEO offers you an opportunity for Online Chat every Wednesday between 3 to 5 pm (IST) with Mr. Ajay Sahai, Director General (FIEO) on issues related with foreign trade. Mr. Sahai has served many important offices in various capacitites. As Jt. DGFT (Policy), during 1996-2003, he was closely associated with the formulation of the Exim Policy. Feel free to seek clarifications/advices from Mr. Sahai on issues related with foreign trade. All that you need to do is to just click ‘FIEO On-Line Chat Service’ at www.fieo.org. Some portions of the Chats held last weeks are reproduced here. |
We have to file re fund claim for 4% additional customs duty paid at the time of import. What is the time limit for the same?
Claim for refund of 4% additional duty of customs should be filed within a period of one year reckoned from the date of payment of duty. Such claim should be filed on monthly basis. An importer can file only one claim in a month irrespective of the number of Bill of Entries.
If we sell the imported goods in inter-state sale and pay CST of 3%, do we get refund restricted to 3% instead of 4%, paid as Additional duty of Customs?
The notification (No. 102/2007-Customs dated 14 Sep. 2007) is very clear that refund of 4% CVD will be claimed on payment of appropriate sales tax or VAT. Hence, 4% refund would be available irrespective of the fact that VAT or sales tax is higher or lower than 4%.You would get refund of 4% CVD even in case where you have paid 3% CST.
When there is conversion of DTA unit into 100% EOU, can the goods imported under advance licence be transferred to the stock of 100% EOU? If yes, what would be the export obligation under advance licence?
If DTA unit is converted into EOU, the unutilised material can be transferred from advance authorisation to EOU, and upon such transfer, the EOU will undertake the export obligation under EOU scheme, which is positive NFEP except for a few products. The obligation under advance licence will get transferred to EOU in such case.
Can you let me know the procedure to be followed in such case?
You may approach Regional Licensing Authority (RLA) with a copy of LOP/LOI executed with Development Commissioner (DC), stock verification from customs/excise, details of import and exports and unutilised balance material under advance authorization and LUT given in annexure to Appendix 14 I-O. RLA, after calculation, will issue NOC to DC and customs/excise with endorsement to you.
What is the procedure to be followed for setting up a 100% EOU?
On obtaining Letter of Permission (LoP) from the Development Commissioner having jurisdiction over the area where the EOU is located, a manufacturer is required to approach the Commissioner of Central Excise for declaration of the place as that of warehousing under Section 9 of the Customs Act. Thereafter, the manufacturer is required to obtain private bonded warehouse licence under Section 58 of the Customs Act and permission to manufacture goods under Section 65 of the Customs Act from the jurisdictional Deputy/Assistant Commissioner.
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We are a garment trader based in Kolkata and have been told that the Government provides duty free import of garments from Bangladesh. Can you provide us the details?
Import of specified apparel and clothing accessories from Bangladesh without basic customs duty has been permitted in respect of such goods produced in Bangladesh and adhering to COO prescribed under SAFTA. However, import of such product shall not exceed 8 million pieces in a calendar year.
Where can I get official communication to this effect?
You may see Customs Notification 51/2008, dated 21st April 2008, which is available at www.cbec.gov.in
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We are exporters as well as domestic producers who are hit by imports from China. We approached Ministry of Finance for increase in duty but it turned down our request saying that the present tariff is at bound rate and cannot be increased. What are Bound Tariffs?
Bound tariffs are those tariffs on which the WTO member had taken a binding level in the earlier round of multilateral negotiations. The binding level is the maximum customs duty that can be leviable by a WTO member. If the present applied rate is at the bound rate, the same cannot be increased further. However, if you feel that China is dumping the goods, you can take recourse to imposition of anti-dumping duty.
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As an exporter of diamond, we want to import rough diamond directly from the overseas supplier. Is it permitted in the country? What is the policy for direct import of goods?
Banks are permitted to make remittances for imports, where the import bills/ documents have been received directly by the importer from the overseas supplier and where the value of import bill does not exceed US$ 100,000. However, the limit was enhanced from USD 100,000 to USD 300,000, in the case of import of rough diamonds, rough precious and semi-precious stones by non-status holders. The Status holders, as defined under the Foreign Trade Policy, are permitted to receive import bills / documents directly from the overseas supplier, irrespective of the value of the import.
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We have been exporting skimmed milk powder from a plant based in a rural area. Kindly advise what all benefits we can claim under EPCG scheme.
You can claim EPCG authorization for import of any machinery at 3% basic customs duty + 3% education cess thereof by undertaking an export obligation which is 8 times the duty saved to be fulfilled over a period of 8 years.
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What is an STP code?
The STP code is abbreviation for Service Tax Payer Code. It is a unique identifier for the assesses’ records of service providers. The 15 digit STP codes is assigned to individual assesses, irrespective of the number of services he may be offering.
Is Permanent Account Number (PAN) required for issuing a 15-digit STP code?
Since every Service Tax Payer is allotted a PAN based code, PAN is required for getting STP Code. However, since some firms may still not have PAN numbers, a provision has also been made in the for issuing a 15 digit temporary STP code. When the firm gets his PAN number, he should get PAN details incorporated.
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I want to know the duty rates on export surplus garments manufactured by 100% export oriented units. The ITC (HS) of the product is 62052000.
In the recent budget 2008-09, the duty on DTA sale has been revised. It is now 50% of basic customs duty and 100% of additional customs duty. Since for product having ITC (HS) Code 62052000, Basic Custom Duty is 10% or Rs. 85 and Additional Custom Duty (ACD) is 4%, you should pay 5% or Rs.42.50 and 4% ACD on DTA sale.
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Kindly inform whether export agent abroad can be given 50% commission on FOB value or not?
There is no restriction on percentage of commission given to an export agent abroad. Therefore, you can give 50% commission if it is justified. However, commission upto only 12.5% is considered as part of FOB value for duty drawback and DEPB etc. Moreover, you are required to pay service tax on such commission but refund of service tax will only be available on commission only upto 2% of FOB value.
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In case of import of second hand capital goods, what document is required by customs for valuation of machinery?
Indian Customs follows transaction value rule for import of second hand capital goods .However, if the transaction value rule is rejected by Customs, valuation of such machinery would be done under Rule 9 on the basis of new machine, as certified by the Chartered Engineer, and reduced by allowing depreciation commensurate with the period of usage.
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