Applied Indirect Taxation Customs Act Questions and Answers for June 2011 Examination 1.

What are oods under Customs Act! 1"#2$ Ans. Goods [Sec.2(22)]: Goods includes — (a)vessels, aircrafts and vehicles; (b)stores; (c)baggage; (d)currenc and negotiable instru!ents; and (e) an other "ind of !ovable #ro#ert $!#orted Goods [Sec.2(2%)] & $t !eans an goods brought into $ndia fro! a #lace outside $ndia but does not include goods 'hich have been cleared for ho!e consu!#tion. (utiable goods [Sec.2()*)] & $t !eans an goods 'hich are chargeable to dut and on 'hich dut has not been #aid. +here no custo!s dut is chargeable either b reason of tariff not #roviding for it or because of the e,e!#tion notification, those goods 'ill not be regarded as dutiable goods. -oastal goods [Sec.2(.)]& $t !eans goods, other than i!#orted goods, trans#orted in a vessel fro! one #ort in $ndia to another /rohibited goods [Sec.2(00)] & $t !eans an goods the i!#ort or e,#ort of 'hich is sub1ect&to an #rohibition under this Act or an other la' for the ti!e being in force but does not include an such goods in res#ect of 'hich the conditions sub1ect to 'hich the goods are #er!itted to be i!#orted or e,#orted have been co!#lied 'ith. 2. %efine &Indian Customs Waters&! What is its si nificance in terms of Customs Act! 1"#2$ Ans. $ndian -usto!s +aters [Sec.2(22) of -usto!s Act, )342] & 5$ndian -usto!s +aters5 !eans, the 'aters e,tending into the sea u#to the li!it of contiguous 6one of $ndia under the 7ariti!es 8ones Act and includes an ba , gulf, harbour, cree", or tidal river. $t is to be noted that 9$ndia9 e,tends to onl )2 nautical !iles, $ndian -usto!s +aters e,tends to 2* nautical !iles. Significance of various !ariti!e 6ones for custo!s #ur#oses & :he significance of territorial 'ater, $ndian -usto!s 'aters and $ndian ;,clusive ;cono!ic 8one for -usto!s <a' are as under & )2 nautical !iles fro! base line $n case of i!#ortation, i!#ort of goods 'ill co!!ence 'hen the i.e. the :erritorial 'aters of $ndia goods cross territorial 'aters and e,#ortation is co!#leted 'hen the goods cross the territorial borders. 2* nautical !iles fro! base line An #erson engaged in the s!uggling of goods can be arrested if he i.e. the $ndian custo!s 'aters is found in $ndian -usto! +aters. Si!ilarl , conve ances found in $ndian -usto!s +aters constructed and fitted in such a !anner so as to conceal s!uggled goods is liable to be confiscated. 2== nautical !iles fro! base line ;cono!ic ;,#loitation in the sea and sea bed can be done b $ndia i.e. the $ndian ;,clusive u#to onl 2== nautical !iles fro! the base line. ;cono!ic 8ones '. What is the purpose of (safe uard dut)($ What are the restrictions of WT* in respect of safe uard dut)$ Can it +e imposed on pro,isional +asis$ Ans. Safeguard (ut [Sec.2> of -usto!s :ariff Act]: +here the -entral Govern!ent is satisfied that &  An article is i!#orted into $ndia in increased ?uantities; and  Such article is i!#orted in such !anner 'hich shall cause or is threatening to cause serious in1ur to the do!estic !ar"et, & then it !a i!#ose safeguard dut on such i!#orted articles. @otes:  /rovisional Safeguard (ut & :he -entral Govern!ent !a , #ending the en?uir , i!#ose a #rovisional safeguard dut on the basis of #reli!inar deter!ination that increased i!#orts have caused or is threatened to cause serious in1ur to a do!estic industr . Ao'ever, such #rovisional safeguard dut shall not re!ain in force for !ore than 2== da s fro! the date on 'hich it 'as i!#osed.  Bnless and until s#ecificall !entioned in the notification, safeguard dut or #rovisional safeguard dut shall not a##l on articles i!#orted b a )==C e,#ort oriented underta"ing or a unit in free trade 6one or in s#ecial econo!ic 6one.  :he condition under +:D for i!#osing safeguard dut is that it should not discri!inate bet'een i!#orts fro! different countries having 7ost Eavoured @ation. -. .ow is ,alue determined for purposes of special C/% under the Customs Tariff Act$ Ans. As #er Sec.0(4) of the -usto!s :ariff Act, the value of the i!#orted article for the #ur#ose of additional dut on an i!#orted article, shall, be the aggregate of: (i) the value of the i!#orted article deter!ined uFs )* or the tariff value of such article, as the case !a be; and (ii) an dut of custo!s chargeable on that article uFs )2 of the -usto!s Act,

aluation is not possi+le on the +asis of transaction . Customs /aluation 8ules pro.cise dut is #a able on the basis of 7H/. #. bul" i!#orts.3A 0. (b) the safeguard dut referred to in Sec.ecute a bond to re&e. In the context of . #lan or s"etch underta"en in $ndia 'ere co!#leted directl or indirectl b the bu er on these i!#orted goods free of charge or at a reduced cost for use in connection 'ith the #roduction and sale for e.aluation. Ans. (b) -ost of engineering. In respect of similar oods manufactured in India! excise dut) is pa)a+le on +asis of :8. these i!#orts shall not be covered under 7H/ based dut co!#utation. including #h sical characteristics. Such goods shall be co!!erciall interchangeable 'ith the goods being valued having regard to the ?ualit . printed in the oods! to this proper$ Will )our answer +e different! if the oods are imported for retail sales$ Ans. art 'or". +here i!#orted ra' !aterials. <. and #lans and s"etches underta"en else'here than in $ndia and necessar for the #roduction of the i!#orted goods shall be added 'hile co!#uting assessable value. Customs authorities contend that C/% will +e calculated +ased on :8.alue method for customs . ?ualit and re#utation as the goods being valued e.istence of trade&!ar". (d) +hile co!#uting assessable value. (b) #roduced in the countr in 'hich the goods being valued 'ere #roduced. Ans. Si!ilar goods !eans i!#orted goods & (a) 'hich although not ali"e in all res#ect. Ao'ever. #lan or s"etch under ta"en in $ndia 'ere co!#leted directl or indirectl b the bu er on these i!#orted goods free of charge or at a reduced cost for use in connection 'ith the #roduction and sale for e.e . design 'or". 'ould invariabl undergo further #rocessing or asse!bl before the are sold to consu!ers.alue of identical oods! . etc. re#utation and the e. develo#!ent 'or". printed in pac3in cartons.#ort the container 'ithin 4 !onths. si!ilar goods do not include i!#orted goods 'here engineering.#ort of these i!#orted goods. co!#onents. have li"e characteristics and li"e co!#onent !aterials 'hich enable the! to #erfor! the sa!e function. and (iii) -G( #a able uFs 0()) and Additional (ut uFs 0(0). and (d) the anti&du!#ing dut referred to in Sec.2> and 2-.&2===)F)33.aluation of oods for determinin the price paid or pa)a+le in the course of arri.)2%C of ED> shall be added for cost of insurance.. (a) -ost of durable and reusable container used for trans#ortation shall not be considered for custo!s valuation #rovided if i!#orter agrees to e. The importer will +e usin the oods for further processin . -G( on i!#ort of that goods is also co!#uted on the basis of 7H/. then goods #roduced b a different !anufacturer. identical goods do not include goods i!#orted goods 'here engineering.in at the assessa+le . Ao'ever. design 'or". art 'or".&2==2.#ort of these i!#orted goods.aluation can +e done on +asis of transaction . An India compan) imported certain consumer oods from a+road with :8. dated 22&)&2==) clarifies that this is a##licable onl to i!#orts of those #re#ac"aged co!!odities 'hich are intended for retail sale. develo#!ent.ce#t for !inor differences in a##earance that do not affect the value of goods. and (c) #roduced b the sa!e #erson 'ho #roduced the goods or 'here no such goods are available. but does not include: (a) Additional dut levied uFs 0(%). =riefl) discuss a+out the %educti. (c) the countervailing dut referred to in Sec.alue under the Customs Act! discuss a+out the inclusion of the followin item1 (a) Cost of dura+le and reusa+le containers used for transportation2 (b) Technical 3now4how drawin s supplied +) importer2 (c) Air frei ht char es incurred for importin items ur entl) re5uired! which are normall) imported +) sea2 6d7 Cost of insurance not readil) ascertaina+le. Ao'ever.&2& )342.3. if such cost is not ascertainable. (b) #roduced in the countr in 'hich the goods being valued 'ere #roduced. develo#!ent 'or". (c) +hile co!#uting assessable value. ). and (c) #roduced b the sa!e #erson 'ho #roduced the goods or 'here no such goods are available. design 'or".ide that if . 02 (H. then goods #roduced b a different !anufacturer. (GE: vide -ircular @o. 2=C of ED> of the goods shall be added for freight. What are the distinctions and similarities +etween (identical oods( and (similar oods($ Ans. then the value of i!#orted goods shall . $dentical goods !eans i!#orted goods & (a) 'hich are sa!e in all res#ects. (eductive Galue [Hule . art 'or".] & +here the goods being valued or identical or si!ilar i!#orted goods are sold in $ndia at or about the ti!e of deter!ination of value. +here e.alue of (similar oods(. 9.

(i) @oting of bill of entr & +hen a bill of entr is #resented b the i!#orter or -AA. :herefore. :r. Dn the other hand. (ii) :he activit of erection an co!!issioning is #ost i!#ort activit and thus. What are the methods of . 1!#002 6c7 new camera of 122!<00.alued at C 20!0002 6+7 one litre of li5uor of 8s. then the value of i!#orted goods shall be based on the unit #rice at 'hich the i!#orted goods or identical or si!ilar i!#orted goods are sold in $ndia at the earliest date after i!#ortation but before the e.is4A4.isitin Berman) +rou ht followin oods while returnin to India 6a7 his personal effects li3e cloth etc. then the bill of entr is returned for clarification. Aence. an a!ount of su#ervision for the sa!e are not includible in the assessable value.alue of customs! the price char ed +) the forei n supplier to :r.erseas supplier of a second hand . :he sa!e vie' has been held b the A#e.es #a able in $ndia b reason of i!#ortation or sale of the goods.is rate of customs dut) applica+le for import of oods! under the Customs Act2 6ii7 An Indian resident . if there are an differences. Eurther. @otes:  +here such goods are not sold at or about the sa!e ti!e of i!#ortation of the goods being valued. 8ahim has imported the same from :r. /ri!ar 7ethod: :ransaction value [Hule 0] b. Secondar 7ethod:  :ransaction value of identical goods [Hule *]  :ransaction value of si!ilar goods [Hule %]  (eductive value [Hule .  +here such goods are sold in $ndia after further #rocessing.& --. (a) the cost of trans#ort and insurance and other cost incurred 'ithin $ndia.&0& be based on the unit #rice at 'hich such goods are sold in the greatest aggregate ?uantit to the unrelated #erson in $ndia as reduced b — (a) the co!!ission usuall #aid or #a able or the additions usuall !ade for #rofits and general e.]  -o!#uted value [Hule 2]  Hesidual !ethod [Hule 3] Ao'ever. @oter co!#are the details in the !anifest 'ith that declared in the bill of entr and docu!ents attached 'ith it. @or this purpose the @orei n >upplier deputed their technicians in India. Ans.ision of erection and commissionin of plant in India. contention of the 7r. (i) A #a !ents actuall !ade or #a able b the i!#orter in connection 'ith the i!#ort of goods.tent not included in the #rice of the goods are to be included. The assessee contends that while arri.aluation of customs dut)$ Is it mandator) that the) should +e applied se5uentiall)$ Ans. $t is also to be noted that such cost is not included in #rice of the #lant at the ti!e of i!#ortation into $ndia. at the re?uest of the i!#orter. 7ethods to be follo'ed (in hierarchal order) for deter!ination of #rice of i!#orted goods — a. . the order of a##lication of Hules . :r.oice . 8ahim has char ed the assessee for 11!000 ?>%. /ri!aril . then the value shall be based on the unit #rice at 'hich the i!#orted goods after #rocessing are sold in the greatest aggregate ?uantit to unrelated #erson in $ndia as reduced b #rocessing and other cost (as referred above) incurred in $ndia. it is to be noted that in Godavari Eertili6ers &vs.in the second hand . $f descri#tion tallied. -ourt in >o!ba ( eing I 7anufacturing -o.alue the Customs Act! 1"#2 of the followin pa)ments made +) an importer to the o. ". 8ahim! on hi h sea >ales +asis. Ha! is incorrect. Anton) of :ala)sia for an in.in at the assessa+le . 8ahim should +e ta3en as the +asis. then it is cross& chec"ed b the noter 'ith the 9$!#ort 7anifest9 sub!itted b the #erson&in&charge of the carrier. #rice charged b the i!#orter to assessee 'ould for! the assessable value and invoice issued b the foreign su##lier is not relevant. then& noter shall record the na!e of i!#orterF-AA b 9noting and give a nu!ber ("no'n as :ho"a nu!ber). to the e. (b) the custo!s dut and other ta.alue of 10!000 ?>%. :r. it is to be included in the assessable value. $n the give case #a !ent of dis!antling charges is certainl incidental and essential for i!#ort of !achine. 10. %iscuss the importance of notin of +ill of entr) . :ransaction value shall be considered as assessable vale. %iscuss the includi+ilit) or otherwise to the assessa+le . 8am! the assessee! has purchased oods from :r. 6ii7 @ees for super. Is the same correct$ Ans. and 2 shall be reversed. 11.lant in India1 6i7 %ismantlin char es for remo.lant at the supplier(s place and shippin to the Indian importer. <td. 12. What is the customs dut) pa)a+le$ Ans. in this regard. and 'ith the a##roval of the #ro#er officer. -usto!s dut is #a able as a #ercentage of value. it 'as held that in case of high sea sale.#ir of 3= da s after such i!#ortation.#enses for sales in $ndia. .

>&* & A securit bond for #rovisional release of sei6ed goods.ntr is to be filed through the Service -enter b the $!#orterF-AA. the A##raiser ((oc"s) 'ould give the 5Dut of -harge5 order on the s ste!. a 5-hec" <ist5 is generated 'hich is to be verified b the $!#orterF-AA and corrected in case an error is detected and the signed 5-hec" <ist5 is to be sub!itted in the Service -enter. (eliver of $!#ort 7anifest or $!#ort He#ort [Sec. $n the . $n case of an discre#anc found in the doc"s 'ith res#ect to the goods.cess baggage. $f the #erson returns after sta ing abroad for !ore than 0 da s. After the Audit is co!#lete. =riefl) explain the procedure for assessment and clearance of imported oods throu h a customs sea port under the Customs Act! 1"#2. 10. 23] & :he #erson&in&charge of a vessel or an aircraft entering $ndia fro! an .. After the assess!ent is a##roved b the Asstt. #ac"ing list etc. at the ti!e of e. After the data entr at the service center.a!ination of the goods is co!#lete. :he dut is to be #aid through the designated ban".a!ination re#ort and the co!!ents of the doc" officers. Jello' >ill of . the >ill of .&*& $n case of co!#uterised s ste!. Ans. -o!!issioner concerned. 0=] & /erson in charge of a vessel or an aircraft or a vehicle or agent thereof shall deliver & $n case of (ocu!ent re?uired to be delivered to #ro#er :i!e li!it for such deliver officer Gessel $!#ort !anifest in du#licate in the for! /rior to arrival of such vessel #rescribed under $!#ort 7anifest (Gessels) . :he >ill of . 1-.a!ination Drder is also #rinted along 'ith the :H&4 -hallan. Ans. :he $!#orterF-AA has to en?uire at the Service -enter 'hether there is an ?uer in res#ect of their >ill of . >tate purpose of =42 and =4.ntr and should re#l to the sa!e through the Service -enter if there is an . the s ste! 'ill #rint t'o co#ies of >ill of . the >ill of . the Grou# !a revise the assess!ent or !a raise a ?uer .ntr for the i!#orter and the . :he Shed A##raiser shall e.ntr on the s ste! and !ar"s it to the Audit A##raiser. $f the data #asses the chec". no custo!s dut is #a able b hi!.ecuted. :hereafter. After the e. vessel or aircraft co!#elled b accident. 1'. than a custo!s #ort or a custo!s air#ort.($ S ste!.change -ontrol -o#ies.S.. Green >ill of . :he .a!ination re#ort in the s ste!. 1#. in such case.. (ii) @o dut is #a able on his #ersonal effects. :he docu!ent can also be filed through the He!ote . =riefl) discuss a+out E%I s)stem of assessment under the Customs Act.ntr a##ears in the screen of the concerned Grou# Assistant -o!!issioner.ntr a##ears on the screen of the A##raiser ((oc"s). :hus.. 2%=== is available.($ S ste!. :his has to be filed 'hen the i!#orter does not 'ant to #a dut i!!ediatel but #refers to "ee# the goods in a 'arehouse and #a the dut subse?uentl and clear the goods for ho!e consu!#tion. safet or #reservation of life or #ro#ert .a!ination of the goods. $n case of H. General Eree Allo'ance of Hs.a!ine the goods and enter the e.ntr 9 as bond is e. Dn the basis of the e. >&2 & >ond >&2 is a suret Fsecurit bond for #rovisional assess!ent. :hen the >ill of . the >an" enters the sa!e into the s ste! at a ter!inal at their end. the sa!e is re#orted to the res#ective Grou# through the s ste! 'ith the co!!ents of the (oc" Dfficers. a !essage is sent bac" to the #art . :he #erson&in&charge should not allo' an unloading of goods and #assengers to leave the vicinit of vessels unless due to health.+ond. /rocedure for i!#ort -learance Arrival of vessel and aircrafts in $ndia [Sec. s ste! acce#ts the data and an ac"no'ledg!ent is sent to the $!#orterF-AA. #lace outside $ndia shall call or land onl at custo!s #ort or a custo!s air#ort. $t is also ter!ed as 9into bond >ill of . :he Grou# A##raiser then assesses the >ill of . #erson&in&charge of such vessel or aircraft shall i!!ediatel re#ort to the nearest custo!s officer or the officer&in&charge of a #olice station. Ao'ever. Ans. 'ho has to sub!it the signed declaration in a #rescribed for!at along 'ith co# of $nvoice and /ac"ing <ist if filed through Service -entre. >tate purpose and use of (Dellow =ill of Entr)&. After #a !ent of the (ut .. :H&4 is #rinted at the Service -enter for #a !ent of dut .ntr then a##ears in the screen of the res#ective Grou# A##raiser.ntr is for 'arehousing. he can raise a ?uer in this regard.ntr is re?uired to be filed for clearance 5fro! 'arehouse on #a !ent of custo!s dut . noter 'ill allot the serial nu!ber and date as generated b the co!#uter. $n the instant case. the s ste! validates the data and if errors are found. stress of 'eather or other unavoidable cause shall call or land at a #lace other. Ans. :he $!#orterF-AA should #resent a co# of the >F. his baggage does not include e. along'ith dut #aid challan and other docu!ents including invoice. $f the A##raiser does not agree 'ith the i!#orter regarding tariff classificationFnotificationFdeclared value etc.

)3. 5. b) +hen the #ro#er officer has granted s#ecial #er!ission in an #articular case. Ao'ever.  Goods to be transshi##ed.  (angerous drugs.e.===. entr in'ards shall not be granted until &  An i!#ort !anifest has been delivered or  :he #ro#er officer is satisfied that there 'as sufficient cause for not delivering i!#ort !anifest. Eurther. )3. Ao'ever. $!#orted goods not to be unloaded fro! vessel until entr in'ards granted [Sec.) $!#ort !anifest in du#licate in the for! #rescribed under $!#ort 7anifest (Aircraft) Hegulation. it should se#aratel !ention about &  Ar!s and a!!unition. (v) #erishable goods.  Bnacco!#anied baggage. #ro#er officer !a allo' loading and unloading of cargo at an other #lace.  @arcotics. 2. b) :he re?uire!ent of entr in'ards does not a##l on unloading of (i) baggage acco!#an ing a #assenger.4 $!#ort re#ort in du#licate in the for! #rescribed under $!#ort He#ort (Eor!) Hegulation. Ao'ever.  Goods to be transshi##ed. #ro#er officer !a grant #er!ission for unloading such goods. 04] & $!#orted goods shall not be unloaded or e. Dn granting entr in'ard. or . Ao'ever. the !aster of the vessel shall be #er!itted to unload (i. 3. 4.4 /rior to arrival of such aircraft +ithin )2 hours after arrival in the custo!s station @otes: ). Bnloading and loading of goods at a##roved #laces onl [Sec. ). 0)].02] & $!#orted goods shall not be #er!itted to be unloaded unless such goods are !entioned in the i!#ort !anifest or re#ort. 3.  Stores. $f there 'as no fraudulent intention.ce#t under su#ervision of custo!s officer [Sec.#ort goods shall not be loaded on an conve ance & a) on an Sunda or on an holida observed b the custo!s de#art!ent. (iii) !ail bags. +hen& (a) All docu!ents relating to entr li"e arrival re#ort. 0*] & $!#orted goods shall be unloaded or e.) and grant entr in'ard. then the #erson&in&charge or such agent shall be liable to a #enalt not e.#ort goods shall be loaded at landing #laces s#ecified uFs 2(a).ceeding Hs. $f the i!#ort !anifest or the i!#ort re#ort is not delivered 'ithout an sufficient cause for dela .. Goods not to be unloaded or loaded e. (ii) baggage acco!#an ing the !e!ber of the cre'. 00] & $!#orted goods shall be unloaded or e. and (vi) ha6ardous goods. (iv) ani!als. $!#orted goods not to be unloaded unless !entioned in $!#ort 7anifest or $!#ort He#ort [Sec. and (b) >erth is available at 'harf. have been received and #ro#er officer found the! a##ro#riate.  Gold and silver. @otes: a) :he date of entr in'ards is relevant for deter!ining rate of dut . :he #erson delivering the i!#ort !anifest or the i!#ort re#ort shall at the foot thereof !a"e and subscribe to a declaration as to the truth of its contents.  . in the follo'ing circu!stances. )3. i!#ort !anifest. %=.#losives. goods !a be loaded or unloaded 'ithout the su#ervision of #ro#er officer & a) +hen the >oard has granted general #er!ission regarding such goods or an class of goods. brea"&bul") an i!#orted goods.#ort goods shall be loaded under the su#ervision of #ro#er officer. 2. 7anifest [also "no'n as $!#ort General 7anifest ($G7)] !eans list of all cargo carried on b such conve ance. then the #ro#er officer !a #er!it to a!end the i!#ort !anifest or re#ort. then #ro#er officer shall allot Hotation @u!ber ("no'n as $G7 @o.&%& Aircraft Gehicle Hegulation. Such list contains infor!ation about &  :he goods are re?uired to be unloaded at the #ort. Hestriction on unloading and loading of goods on holida s [Sec.

 @u!ber and descri#tion of #ac"age.  Hate of dut (>asic. .  <ine @o. 3. Au..  Gessels na!e. b) >ill of entr for 'arehouse or $nto&bond bill of entr or Jello' bill of entr & :his t #e of bill of entr is filed 'hen i!#orter intended to 'arehouse the goods. then the #ro#er officer !a #er!it hi! & (a) :o e.  >ill of lading or (eliver orderFAir'a >ill. loading or unloading is #ossible on that da or at that ti!e after giving the #rescribed notice and on #a !ent of the #rescribed fees.  -AA (-usto!s Aouse Agent) @a!e.  Hotation @o. at the foot of bill of entr . Hotation nu!ber is a nu!ber allotted b the custo!s de#art!ent to the #erson in charge of the conve ance after e. 4. .] & :he #ro#er officer !a board an conve ance carr ing i!#orted goods or e. +here the i!#orter !a"es and subscribes to a declaration before the #ro#er officer that he is unable for 'ant of full infor!ation to furnish all the #articulars in the bill of entr . filed 'hen i!#orter intended to re!ove the goods fro! custo!s area for consu!#tion or use in $ndia.  :ri#licate for record of i!#orter. 2. giving b the carrier to the consignor. A bill of entr shall include all the goods !entioned in the bill of lading or air'a bill or rail'a recei#t or road'a bill.  GA:: declaration for! dul filled in.a!ining and recoding the !anifest.  Assessable value. and (ate. Ae !a re!ain on such conve ance for such #eriod as he consider necessar . c) >ill of entr for e. 0.a!ine the goods in the #resence of an officer of the custo!s. Ao'ever. and date (if an ). : #es of bill of entr & >ill of entr !a be of follo'ing t #es & a) >ill of entr for ho!e consu!#tion or +hite bill of entr & :his t #e of bill of entr is. and -ode @o. 3.&bond clearance or Green bill of entr & :his t #e of bill of entr is filed 'hen i!#orter intended to re!ove the goods fro! 'arehouse for consu!#tion or use in $ndia. !a"e and subscribe to a declaration as to the truth of the contents of such bill of entr . *4]: 1. >ill of entr [Sec.  -ountr of origin.  (u#licate for custodian of the cargo for release of cargo to the i!#orter. etc.iliar . :he i!#orter shall.  /ac"ing list. :he i!#orter of an goods (other than goods intended for transit or transshi#!ent) shall #resent a bill of entr for ho!e consu!#tion or 'arehousing in the #rescribed for! to the #ro#er officer.  @ature of dut .&4& b) on an da after the 'or"ing hours. 2.  A!ount of dut ..  /ort of shi#!ent.). (b) :o de#osit the goods in a #ublic 'arehouse 'ithout 'arehousing the sa!e.  Kuantit of goods. Address and >$@ (>usiness $dentification @u!ber). /o'er to board conve ances [Sec. and date. (ocu!ents to be attached 'ith bill of entr & Eollo'ing docu!ents are re?uired to be sub!itted along 'ith bill of entr &  $nvoice. @ote & Eees shall not be levied for the unloading or loading of baggage acco!#an ing a #assenger or the !e!ber of the cre' and !ail bags.  (escri#tion of goods. -ontents of bill of entr & Eilling of bill of entr re?uires infor!ation about follo'ing &  $!#orters @a!e. <icence @o.#ort goods at an ti!e. -o# of bill of entr re?uired to be sub!itted & >ill of entr shall be sub!itted in ?uadru#licate &  Driginal for custo! de#art!ent for assess!ent and collection of dut .  .  >ill of lading @o. Ae shall (in su##ort of such declaration) #roduce to the #ro#er officer the invoice relating to the i!#orted goods.  -ountr of consign!ent. 4.e!#tion notification no. Address..  -usto!s tariff heading. 5<ine nu!ber is the serial nu!ber of the goods in the !anifest. and  Kuadru#licate for ban" for !a"ing re!ittance.

He&assess!ent & Dn e. the #resentation shall be done at :DG and noter 'ill allot the serial nu!ber and date as generated b the co!#uter. Dn the other hand. then noter shall record the na!e of i!#orterF-AA b 9noting9 and give a nu!ber ("no'n as :ho"a nu!ber).&  $!#ortersF-AA9s declaration.  $ndent.). as the case !a be. then Assistant -o!!issioner a##roves such value.e. bro"er9s note. )=. (ut on such goods shall be deter!ined at the rate in force on the date of #resenting bill of entr . the dut on such goods shall be assessed.  :est re#ort in case of che!icals. then i!#orter shall #roduce such docu!ents and infor!ation. then the bill of entr is returned for clarification. Assess!ent after e. co!#onents !achineries. then it is cross& chec"ed b the noter 'ith the 9$!#ort 7anifest9 sub!itted b the #erson&in&charge of the carrier.  -ertificate of countr of origin. the bill of entr shall be dee!ed to be #resented on the date of such entr in'ards or the arrival. @oting of bill of entr & +hen a bill of entr is #resented b the i!#orter or -AA. #olic of insurance. c) (ecide a##licable rate of dut .e. Assess!ent after e. $f the #ro#er officer is satisfied that & a) the interests of revenue are not #re1udiciall affected. the Assessing Dfficer should sign in full in bill of entr follo'ed . A##roval of assess!ent & +hen a##raiser finishes the assess!ent. if #referential rate of dut is clai!ed. #ro#er officer !a e. and d) Gerif that goods are not i!#orted in violation of an la'. Eurther. Ae !a #er!it substitution of a bill of entr for ho!e consu!#tion for a bill of entr for 'arehousing or vice versa.a!ine and test the goods after assess!ent. and b) there 'as no fraudulent intention.&.a!ination. After such a##roval.(*)] & /ro#er officer !a"es an assess!ent on the basis of state!ent !ade in the bill of entr and other docu!ents and infor!ation i.). +hile assess!ent. Second&chec" #rocedure i. b) Galue the goods.  -atalogue or :echnical literature. Assess!ent & After noting.e!#tion order. Assess!ent on the basis of docu!ents. $f descri#tion tallied.  Se#aratel s#lit u# value of s#ares. 'hen it is found that an state!ent in such entr or docu!ent or infor!ation is not true. if there are an differences.  <icense ('herever necessar )  <etter of creditF>an" draft ('herever necessar ). Assess!ent on the basis of docu!ents (Second -hec" A##raise!ent) [Sec.  @o co!!ission declaration. Eurther.  $ndustrial license (if re?uired). or  arrival of the aircraft.a!ination or testing of goods.a!ined and tested b the #ro#er officer. :here are t'o #rocedure of assess!ent &  Eirst&chec" #rocedure i.  $!#ort license.  $nsurance docu!ents.  +here the #ro#er officer re?uires an contract. A bill of entr !a be #resented even before the deliver of !anifest if the vessel or aircraft b 'hich the goods have been shi##ed for i!#ortation into $ndia is e. catalogue or other docu!ents and infor!ation. the dut #a able is t #ed b a 9#in&#oint t #e'riter) so that it cannot be te!#ered 'ith. it is to be noted that if bill of entr has been #resented before the date of —  entr in'ards of the vessel. @oter co!#are the details in the !anifest 'ith that declared in the bill of entr and docu!ents attached 'ith it. :i!e for #resenting bill of entr & A bill of entr shall be #resented at an ti!e after the deliver of the i!#ort !anifest or i!#ort re#ort. 3.  After such e. the bill of entr shall be sent to the A##raising de#art!ent for assess!ent.a!ination (Eirst -hec" A##raise!ent) [Sec. &  Adhoc e.#ected to arrive 'ithin 0= da s fro! the date of such #resentation.e.(2)]:  $!#orted goods shall be e. a##raising de#art!ent has to & a) -lassif the goods. hence the date of #resenting bill of entr is ver i!#ortant.a!ination and testing. $n case of co!#uterised s ste!. Ao'ever. then the goods !a be re&assessed to dut . !ore rel is given on i!#orter.

@ote: +here the goods are being transshi##ed under an international treat or bilateral agree!ent bet'een the Govern!ent of $ndia and Govern!ent of a foreign countr . %4] & $!#orted goods !a be trans#orted 'ithout #a !ent of dut fro! one land custo!s station to another. if goods are alread e. the >oard !a 'aive the 'hole or #art of such interest. deliver of goods shall be ta"en fro! #ort trust (i. Ao'ever. Such goods shall be entered in li"e !anner as goods are entered on the first i!#ortation thereof and the #rovisions of this Act and rules and regulations shall a##l in relation to such goods. $!#orter is re?uired to #a dut 'ithin a #eriod of % da s (e. -learance of goods [Sec. ). %%] &+here an goods are allo'ed to be transited or transshi##ed to an custo! station. %*] N (a) +here an goods i!#orted into a custo! station are intended for transshi#!ent. $n this case there are t'o #ossibilities & :ransit & :he goods 'ill continue to be carried b that conve ance and delivered at different #ort.&2& b his na!e. :rans#ort of goods [Sec. S#ecial #rovisions regarding goods in transit and transhi#!ent of goods @on&a##licabilit of s#ecial #rovision [Sec. then on their arrival at such station.a!ined. then such goods !a be allo'ed to be so transshi##ed (sub1ect to such conditions as !a be #rescribed for the due arrival of such goods at the custo!s station to 'hich transshi#!ent is allo'ed) 'ithout #a !ent of dut . $f the goods are assessed under first chec" !ethod. giving notice to the i!#orter. Such goods have different destination at different #orts of $ndia or an foreign #ort(s). %2] & S#ecial #rovision regarding transit and transhi#!ent of goods shall not be a##licable to & (a) >aggage.. shed a##raiser gives 9out of charge9 order and then deliver shall be ta"en fro! custodian.e!#tions fro! dut under the -usto!s Act. :ransit of certain goods 'ithout #a !ent of dut [Sec. %0] & An goods i!#orted in a conve ance and !entioned in the i!#ort !anifest or the i!#ort re#ort as for transit in the sa!e conve ance to an #lace outside $ndia or an custo! station !a be allo'ed to be so transited 'ithout #a !ent of dut . Eote1 a) +ith the #er!ission of the #ro#er officer. then collection de#art!ent gives 9out of charge9 order and return 0 co#ies of bill of entr interest on late #a !ent & +here i!#orter fails to #a dut 'ithin % da s then he shall be liable to #a interest L )0C on such dut till the date of #a !ent. :ransshi#!ent of certain goods 'ithout #a !ent of dut [Sec. . <iabilit of dut on goods transited or transshi##ed [Sec. bill of entr is returned to the i!#orter for #a !ent of dut . :ransshi#!ent& Such conve ance shall unload the goods at the #articular #ort and thereafter the goods shall be loaded on and carried on b different conve ance for its destination.a!ined. Dn the other hand. $t can be #aid in cashF(( through :H&4 challans or through /rovisional (ut (/() Account.a!ination.e. #erishable goods and ha6ardous goods !a be sold at an ti!e. the shall be liable to dut . /rocedure in case of goods not cleared 'ithin 0= da s after unloading [Sec. getting #er!ission fro! the #ro#er officer. b) Ar!s and a!!unition !a be sold at such ti!e and #lace and in such !anner as the -entral Govern!ent !a direct. then such goods !a be sold b the custodian.cluding holida s) fro! the date on 'hich the bill of entr is returned to hi!.a!ination staff. Ao'ever. After e.(b)Goods i!#orted b #ost and (c) Stores. *. custodian shall sell such goods after & 1. )342M Ans. @ote & :here is no ti!e li!it for co!#letion of assess!ent. (b) +here an goods i!#orted into a custo!s station are !entioned in the i!#ort !anifest or the i!#ort re#ort as for transshi#!ent to an #lace outside $ndia or an custo! station in $ndia. a bill of transshi#!ent shall be #resented to the #ro#er officer in the #rescribed for!. *2] & $f an i!#orted goods are not cleared for ho!e consu!#tion or 'arehoused or transshi##ed 'ithin 0= da s fro! the date of unloading thereof at a custo!s station (or 'ithin ti!e e. /a !ent of -usto!s (ut & After assess!ent. if goods are not e. Goods !a also be trans#orted fro! one #art of $ndia to another #art through an foreign territor sub1ect to such conditions as !a be #rescribed for the due arrival of such goods at the #lace of destination. Goods in transit and transshi#!ent of goods & All goods carried on b a conve ance !a not have sa!e destination. ani!als. +hat do ou understand b transit and transhi#!ent of goodsM Bnder 'hat conditions do the en1o e.] & After #a !ent of dut . bill of entr shall be sub!itted to the e. a declaration for transshi#!ent (instead of a bill of transshi#!ent) shall be #resented to the #ro#er officer in the #rescribed for!. custodian) after #a ing their dues.tended b the #ro#er officer). and 2.

$t !a also be noted that the auditors are s#ecificall being instructed to scrutini6e declarations 'ith reference to data ?ualit and advise the i!#ortersF-AAs suitabl 'here the ?ualit of their declarations is found deficient.a!ination. b e.ntr 'ill be discontinue and the focus 'ill be on ?ualit assess!ent.it of international trade and the deteriorating global securit scenario #resent for!idable challenges to -usto!s. $t is intended to i!#rove the !anage!ent of the resources of the de#art!ent to enhance the efficienc and effectiveness in !eeting sta"e&holder e.a!ination and the a##raising and e. 'hile reducing the d'ell ti!e of cargo. $t hardl needs e!#hasis that co!#liance in all its di!ensions is in the !utual interest of the Govern!ent and the :rade and $ndustr and it 'ill enable the govern!ent of give increasing levels of facilitation. :his necessitates that the de#art!ent should be selective in its a##roach to de#lo !ent of its resources.FOoint -o!!issioner of -usto!s.ntr . Ans. Such staff should be . >riefl discuss the as#ects relating to self assess!ent b an i!#orter on the basis of 9His" 7anage!ent S ste!9. after clearance of the goods. +ith the introduction of the H7S. is to stri"e an o#ti!al balance bet'een facilitation and enforce!ent and to #ro!ote a culture of co!#liance. :his out#ut 'ill deter!ine 'hether the >ill of . and after recording the reasons for the sa!e. the for!al #rocesses of de!and notices. 'ithout an assess!ent and e. being established under the (irectorate General of S ste!s. :he national !anage!ent of the His" 7anage!ent S ste! shall be the res#onsibilit of the His" 7anage!ent (ivision. 'ho shall not be belo' the ran" of Addl. $t is #ossible that in a fe' cases.a!ining Dfficer or the Dut&of&-harge Dfficer. :he local His" 7anage!ent S ste! 'ill carr out the live #rocessing of the >ills of . therefore. Such advice is e.isting s ste! of concurrent audit shall be abolished and re#laced b a /ost&-learance -o!#liance Gerification (Audit) function. :he i!#le!entation of H7S 'ill necessitate reorgani6ation of staff. :he e.($ s ste!. :he $!#ortersF-AAs are urged to co&o#erate in the de#art!ent9s efforts in this direction. e.a!ination and /ost -learance Audit of >ills of .ntr and $G7s filed electronicall into $-. :he H7S 'ill select the bills of entr for audit. Such a course of action shall ho'ever be ta"en onl 'ith the #rior a##roval of the 1urisdictional -o!!issioner of -usto!s or an officer authori6ed b hi! for this #ur#ose. the #resent #ractice of routine assess!ent concurrent audit and e. and $!#ort General 7anifests etc. ad1udication etc.a!ination or both) or be cleared.#editing release of cargo 'here co!#liance is high. $n case there is no agree!ent.S through the Service -entre or the $-. :he -o!!issioners of -usto!s are re?uired to a##oint the ad!inistrator for the 9<ocal His" 7anage!ent S ste!9 at the level of the OointFAdditional -o!!issioner for assigning user #rivileges on the <ocal His" 7anage!ent S ste!. H7S 'ill #rovide instructions for A##raising Dfficer. :he #resent a##raising facilities should be right& si6ed in tune 'ith the reduced ?uantu! of >ills of entr co!ing for assess!ent. the field for!ations !ight decide to a##l a #articular treat!ent to the >.ntr selected b the His" 7anage!ent S ste!.a!ination of al!ost all >ills of .a!ining ever consign!ent 'ill si!#l not 'or". -usto! Aouses are re?uired to underta"e a co!#rehensive re&organi6ation of the officers de#lo ed for #rocessing >ills of . >ills of .GA:. :he H7S 'ill #rocess the data through a series of ste#s and #roduce an electronic out#ut for the $-. Also 'hen necessar .#ectations and to bring the -usto!s #rocesses at #ar 'ith the bills international #ractices. !aintain and enhance co!#liance levels.ntr 'ill be ta"en&u# for action (a##raise!ent or e. 'ould follo'. Also. :he ever increasing volu!es and co!#le. as it 'ould neither be desirable nor #ossible to constantl increase the resources 'ith the increasing 'or"load.a!ination instructions co!!unicated b the H7S have be fol& lo'ed b the field for!ations.. :he e. 'ill be trans!itted b $-. $n case an #ossible short levies are noticed. after #a !ent of dut and Dut of -harge directl . $t needs to be noted that the decisions co!!unicated b the H7S on the need for assess!ent andFor e. the officers 'ill issue a -onsultative <etter setting out the grounds for their vie' to the $!#ortersF-AAs.($ s ste!. State the categories of eligible and ineligible #ersons 'ho can !a"e use of this sche!e. and these selected bills of entr 'ill be directed to the audit officers for scrutin b the . :he #ri!ar ob1ective of the His" 7anage!ent S ste!. :he ob1ective of the /ost -learance Gerification /rogra!!e is to !onitor.S. A brief re!ar" on the reasons and the #articulars of -o!!issioner9s authori6ation should be !ade b the officer e. there is a need to reduce the d'ell&ti!e of cargo at the #orts and air#orts and to reduce the transaction costs in order to enhance the co!#etitiveness of $ndian businesses. .#onential gro'th in trade volu!es !eans that the traditional a##roach of scrutini6ing ever docu!ent and e. :here 'ill be a local His" 7anage!ent S ste! catering to the needs of the -usto! Aouses.ntr .a!ining the goods in the de#art!ental co!!ents in the . 'hich is at variance 'ith the decision received fro! the H7S o'ing to ris"s 'hich are not factored in the H7S. :his is intended to give the i!#orters an o##ortunit to voluntaril co!#l and #a the dut difference if the agree 'ith the de#art!ent9s #oint of vie'. :he advances in $n& for!ation :echnolog offer an o##ortunit to address these challenges faced b the de#art!ent b #utting in #lace an effective ris" !anage!ent s ste!.&3& )2.#ected to be follo'ed and 'ill be !onitored b the local ris" !anagers.S to the H7S.

ce#t on the basis of docu!entar evidence 'hich 'as in e.#ir of 3= da s. #ac"aging !aterial etc. 'ould be #hased out 'ith the i!#le!entation of the H7S and the Accredited -lients /rogra!!e.#ortation uFs %) in an other case (ate on 'hich dut is #aid 2).#orted b #ost).e!#t fro! dut on the date of clearanceM Ans. 'herein the Su#re!e -ourt has held that e.8 unit. ta. #lans. the e.ntitle!ent /ass >oo" ((. :he (ut .#ir of % ears. As #er Sec. Ao'ever./>) Sche!e is to neutralise the incidence of -usto!s dut on the i!#ort content of the e.#ort #roducts and at such rates as !a be s#ecified b the (irector General of Eoreign :rade b 'a of #ublic notice issued in this behalf. de#osited or e.e!#t fro! dut on the date of clearance.#orter or 9#erson in charge9 a!end the docu!ents sub!itted to custo!s authoritiesM $f es.#ort goods have been e. 'hich shall be the #ort fro! 'here e. :he credit shall be available against such e.#orted.#ort is co!#lete on loading after clearance. a!end!ent of a bill of entr or a shi##ing bill or bill of e.#ort uFs %= loading of the goods for e./>) Sche!e. but the shi# returns to $ndia because of engine troubleM +hat is the relevant date for e. -an an i!#orter. inter!ediates./>) Sche!e shall have the o#tion to #a additional custo!s dut . an e.ntitle!ent /ass >oo" ((. the Self&assess!ent sche!e.& )= & diverted to the /ost -learance Audit.#ort #roduct. +hat is the 5ta.ntitle!ent /ass >oo" ((.#orts have been !ade. & (a) in the case of ca#ital goods intended for use in an )==C e. As the de#lo !ent of the H7S is li"el to ta"e #lace in #hased !anner across the $-. :he transfer of (ut . :he e.#ort of goods under custo!s la'M $s e. if an . (ate for deter!ination of rate of dut and tariff valuation of e. :he holder of (ut . and (c) in the case of an other goods.8 unit in case of su##l b (:A to S. the #ro#er officer !a . authorise an docu!ent. $t is further held that off&loading of goods at foreign #ort is not art essential re?uire!ent for e.#ort&oriented underta"ing.able event occurs 'hen goods cross territorial 'aters of $ndia N BD$ vs.<$ 2*) (S-). 22. East trac"Fgreen channel sche!e.#ort #roduct. till the e. 2=. as a s#ecified #ercentage of ED> value of e.ntitle!ent /ass >oo" ((. e. no interest is #a able 'hen 'arehoused goods are e.#ort shall not be authorised after the i!#orted goods have been cleared for ho!e consu!#tion or de#osited in a 'arehouse.#ort shall be allo'ed under :HA facilit as #er the ter!s and conditions of the notification issued b (e#art!ent of Hevenue. . (b) in the case of goods other than ca#ital goods intended for use in an )==C e.#orted. )4]: :he rate of dut and tariff valuation (if an ) a##licable to an e.#lain ho' (. Pol"ata )322(0%) . $n case of e. An 'arehoused goods !a be left in the 'arehouse 'ithout #a ing interest u#to follo'ing ti!e #eriod. :he credit !a also be utili6ed for #a !ent of -usto!s (ut on an ite! 'hich is freel i!#ortable.#ir of 0 ears.#ort dut #a able in case of a##licable goods 'here shi# travels *= nautical !iles fro! $ndian #ort and the title #asses to the bu er.& -ollector of -usto!s./> sche!e hel#s in !a"ing e.#ort oriented underta"ing. )3. till the e..)*3 of the -usto!s Act. )342M $s interest #a able 'hen 'arehoused goods are e. $nterest L )%C is #a able on dut liabilit at the ti!e of clearance. :he ob1ective of (ut . Ans. $!#orts fro! a #ort other than the #ort of e. or the e.ntitle!ent /ass >oo" ((. Ha1indra ( eing and /rinting 7ills 2==% ()2=) . as the case !a be. Ao'ever.#orted #roducts ta. co!#onents.ntitle!ent /ass >oo" ((.a!ination of cargo 'ould also be re?uired to be read1usted. e.istence at the ti!e the goods 'ere cleared./>) Sche!e andFor the ite!s i!#orted against it are freel transferable.<: *00 (S-). in his discretion. :he neutralisation shall be #rovided b 'a of grant of dut credit against the e.#ort dut M Ans./>) Sche!e shall ho'ever be for i!#ort at the #ort s#ecified in the (ut . :he strength of the staff for e. in cash as 'ell. .#ort goods [Sec. free. shall be rate and valuation in force N -ase Hate and Galue in force on +hen goods entered for (ate on 'hich the #ro#er officer !a"es an order #er!itting clearance and e.#ort to ta"e #lace. +hat is 5$nterest&free #eriod5 in res#ect of 'arehoused goods under the -usto!s Act.able event5 in the case of e. till the e.#ort goods (other than baggage and goods e.#orter !a a##l for credit. Bnder the (ut .isting facilitation sche!es vi6.#orts. for i!#ort of ra' !aterials.#orts. !ade in freel convertible currenc or the #a !ent !ade fro! the Eoreign -urrenc Account of the S. $n Sun $ndustries &vs../>) sche!e. Accelerated custo!s clearance sche!es etc.. after it has been #resented in the custo! house to be a!ended. fro! 'hat date is the a!end!ent effectiveM Ans.S locations.isting facilitation sche!es 'ill continue to be o#erative in each -usto!s station until the o#erationalisation of the H7S at that station.

Hegulation regarding goods i!#orted or e. if an . b) :he e. $n the follo'ing cases All $ndustr (ra'bac" Hules are not a##licable: a. *=. 'here all the industr (ra'bac" rates 'ill not a##l . (iv) Ae is returning after )2 !onths sta abroad (ignore difference due to !inor i!#urities in 1e'eller )..=== in for! of gold 1e'eller 'hich he 'as using abroad (valued at international rates).@o. $n case of e. 'ho is co!ing to $ndia after a #eriod of not less than 4 !onths of sta abroad. !ade b the #assenger during the aforesaid #eriod of 4 !onths shall be ignored if the total duration of sta on such visits does not e.. out of 'hich Hs. orna!ents.9 c. An #assenger of $ndian Drigin or a #assenger holding a valid #ass#ort. Hate of dut and tariff valuation [Sec. )34.#orted b #ost <abel or declaration acco!#an ing goods to be treated as entr [Sec. and short visits.#orted under (. (ra'bac" Hules. other than tola bars. 'ho has given it onl for carr ing to $ndia. A. issued under the /ass#ort Act.. at the ti!e of short visits.DB or a unit located in S.& )) & 20. >riefl e. . -entral . S#ecial #rovisions regarding goods i!#orted or e.#orted against e.#orted b #ost [Sec./> Sche!e.du. )33%. 8ate of %ut) ). @ote & +here such goods are i!#orted b a vessel and the list of the goods 'as #resented before the date of the arrival of such vessel.  :he 'eight of gold (including orna!ents) should not e.#orted b #ost shall be the rate and valuation in force on the date on 'hich the e. he has not availed = the e. brings ) "g gold. 2*] & :he >oard !a !a"e regulations #roviding for & a) +here goods are not acco!#anied b a label or declaration.. #er #assenger.#ort & :he rate of dut and tariff value (if an ) a##licable to goods e.cise rebate as #er Hule )2 of the -entral .#orted b #ost.  Drna!ents studded 'ith stones and #earls are not allo'ed to be i!#orted. Goods e. -ess coins 2.#lain the #rovisions under the -usto!s Act relating to i!#ort through courier.  :he #assenger should not have brought gold or other orna!ents during an of his visits (short visits) in the last 4 !onths i. 2*.e. ) above including tola bars and Hs.cise (uties and Serviced :a. bearing !anufacturers or refiners Hs. then it shall be dee!ed to have been #resented on the date of such arrival. Dther -onditions to be satisfied:  :he dut shall be #aid in convertible foreign currenc .cise Hules. assess!ent to dut I clearance of goods i!#orted or e. Gold bars. Ans.8 e. Goods !anufactured against Advance <icence. Ae is re?uired to file a declaration in the #rescribed Eor! before the -usto!s Dfficer at the ti!e of arrival in $ndia stating his intention to obtain the gold fro! the -usto!s bonded 'arehouse and #a the dut before clearance.#orter delivers such goods to the #ostal authorities for e.#ort.du.ceed 0= da s. a #erson holding $ndian #ass#ort. but e. d. Goods !anufactured in custo!s bonded 'arehouse.4=.ceed )= "gs. Q engraved serial nu!ber and 'eight e. 2%. Goods !anufactured or e.cluding orna!ents studded 'ith stones or #earls Q 0C .  :he #assenger can also obtain the #er!itted ?uantit of gold fro! -usto!s bonded 'arehouse of State >an" of $ndia and 7etals9 and 7ineral :rading -or#oration sub1ect to conditions (i) and (ii) above. Ans..#orts b )==C .e!#tion under this sche!e. the for! and !anner in 'hich an entr !a be !ade. Gold in an for! other than at S$.2== #er)= g!s.#ortation. -ess . c) :he transit or transshi#!ent of goods i!#orted b #ost fro! one custo!s station to another or to a #lace outside $ndia.a!ination.=== are in for! of biscuits and balance of Hs. (iii) the #erson is returning after 2 !onths sta abroad and the gold belongs to his friend.  :he #assenger can either bring the gold hi!self at the ti!e of arrival or i!#ort the sa!e 'ithin )% da s of his arrival in $ndia as unacco!#anied baggage. 20] $n case of i!#ort & :he rate of dut and tariff value (if an ) a##licable to an goods i!#orted b #ost shall be the rate and valuation in force on the date on 'hich the #ostal authorities #resent to the #ro#er officer a list containing the #articulars of such goods for the #ur#ose of assessing the dut thereon. ?uantit and value thereof) acco!#an ing the goods shall be dee!ed to be an entr for i!#ort or e. 22] &An label or declaration (containing descri#tion. 7ention briefl an five illustrative cases under the -usto!s. 7r. (ii) the #erson is returning after 3 !onths sta abroad and the gold belongs to hi!. Ans. b. %== #er )= g!s.#ressed in !etric units and gold 0C . 0. +hat is the dut #a able if (i) the #erson is returning after 0 !onths sta .

soa#. had enunciated the -annons of :a. :his section shall a##l to gold. blades etc. 9$t is not unreasonable that the rich should contribute to the #ublic e. other titan tola bars. certaint .. (irect :a. Jes. Generall . 0=. :he effective rate of custo!s dut on baggage is 0%C. 'atches.-) at the follo'ing rate: Gold bars.es are based on the #rinci#le of e?uit or abilit to #a . s ste!. s nthetic arn. and (ii) if an #erson.ation. on such co!!odities li"e !atchbo. 9Gold in an for!9 shall include !edallions and coins. Ada! S!ith. 'hich are. refund is clai!ed b the i!#orter. also on such other #erson. +hich !eans as inco!e increases the rate of inco!e ta. engraved serial nu!ber and 'eight e. tooth#aste. $ndirect :a. convenience and econo! .. (ut is re?uired to be #aid in convertible foreign e. ta. can clai! refund of s#ecial -G( [@otification @o. 'ho clai!s to be the o'ner of the goods so sei6ed. :he Oe'eller 'hich is in addition to the 1e'eller other'ise allo'ed 'ithout #a !ent of dut .. and foreign currenc coins. on the #erson. 23.#ressed in !etric units. silver bullion and an other s#ecified goods b the -entral Govern!ent. 9:he sub1ects of ever state ought to contribute to'ards the su##ort of the govern!ent as nearl as #ossible in #ro#ortion to their res#ective abilities that is in #ro#ortion to the revenue 'hich the res#ectivel en1o under the #rotection of the state. the bu er can file clai! for the refund. As #er Sec. 'hich are based on the conce#ts of e?ualit . :his canon e!bodies the #rinci#le of e?uit or 1ustice and la s do'n the !oral foundation of the ta. 'hich 'as #o#ularl abbreviated to +ealth of @ations.es on necessities. 0). )20. also increases. :he gold can be sold in $ndia. is e?uitabl distributed on different #eo#le I institutions as the are #rogressive in nature.#ense not onl in #ro#ortion to their revenue but so!ething !ore than that #ro#ortion. if the incidence of the dut is borne b the bu er of the i!#orted goods. :he noted )2th -entur . -an gold be brought into $ndiaM +hat is the custo!s dut #a able thereonM -an such gold be subse?uentl sold in $ndiaM Ans. @otes: a. Abilit to #a is one of the !ost i!#ortant -annons of :a. 2. $t is to be noted that -G( is not a##licable.ation. )342.2== #er )=g!s. should in #ro#ortion to the abilit to #a . +hat is the effective rate of custo!s dut on baggageM Ans.L 2C and )C of dut res#ectivel . +ho can file refund clai!s under the -usto!s actM Ans. such dut is further increased b education cess and SA. Gold can be brought into $ndia after #a ing custo!s dut (Q education cess and SA. the burden of #roving that the are not s!uggled goods shall be — (a) in a case 'here such sei6ure is !ade fro! the #ossession of an #erson. 6i# fasteners. S!ith had 'ritten in his +ealth of @ations. other than the #erson fro! 'hose #ossession the goods 'ere sei6ed. :he cannon of e?ualit arises fro! the follo'ing idea. bearing 7anufacturer9s or refiner9s Hs.nglish econo!ist. !etallic arn. :he rich I #oor are re?uired to #a the sa!e a!ount of ta. Ans. According to S!ith there are four basic cannons of ta. )=2F2==. if an . Ao'ever. 22. thus the do not satisf the canon of e?uit . A dealer 'ho i!#orts goods and sales the! in $ndia after #a ing GatFsales ta.change. Ao'ever. (b) in an other case. Ans.& )2 & 24. $s it #ossible for a :rader to clai! refund of s#ecial -G( fro! custo!s de#art!entM State our vie's.]. >riefl e. consu!ed b #oor are regressive in nature. and !anufactures thereof. (i) on the #erson fro! 'hose #ossession the goods 'ere sei6ed. Ans. :hus.&-us dated )*&3&2==. b. and old coins Gold in an other for! including li?uid gold and tola bars Hs. An $n?uir into the @ature and -auses of the +ealth of @ations. the burden is heav on #oor than on the rich. clai!s to be the o'ner thereof. c. onl is liable to #a !ent of dut under the above !entioned sche!e of i!#ort of gold.ation in his celebrated 'or". .%== #er )= g!s. 'here an s#ecified goods are sei6ed in the reasonable belief that the are s!uggled goods. <ist at least four articles 'hich are covered under these #rovisions.#lain the #rovision in res#ect of 5burden of #oof in res#ect of goods covered under Section )20 of -usto!s Act. but shall not include 1e'eller !ade of gold or silver. but. #rovided that #a !ent for the sa!e is obtained b che?ue in $ndian Hu#ees. :he burden of a direct ta. as the case !a be.

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