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Customs

October 2024

Tax Forum Customs Engagements

  1. Comprehensive review of duty structure on
    • Electronics and Telecom equipment
    • Certain drugs and vaccines
    • Raw materials for manufacturing certain Fast Moving Consumable Goods
    • Lubricants and Spare parts used by Airline Industry
    • Import of cocoa beans, corns, Dried Distillers’ Grains, sorghum, animal feed supplements etc.
    • Manufacturing toys
  2. CAROTAR (Customs Administration of Rules of Origin under Trade Agreements) Rules
    • Procedural and interpretation issues leading to delays in shipments clearance
    • Expediting furnishing of verification reports by country of origin
    • Release of Bank Guarantees
    • Issues in availing other Free Trade Agreement Benefits
  3. Classification disputes
    • Electronics Industry
    • Medical/Pharmaceutical Industry
    • Semiconductor Industry
    • Telecom Industry
    • Heavy Engineering
    • Fast Moving Consumer Goods Industry
    • Second-hand products for Research & Development
    • Amendments/extension of customs notification
    • Medical/Pharmaceutical Industry
  4. Remission of Duties and Taxes on Exported Products (RoDTEP) scheme
    • Issues in availing benefits under the scheme
    • Recommendations on applicable rates
  5. Special Valuation Branch (SVB)
    • Request for time bound investigations
    • Automation of SVB refund
  6. Authorised Economic Operators (AEO) Scheme
    • Support in expediting license
    • Issues in availing benefits
    • Policy recommendations on further strengthening the scheme
  7. All India Customs Consultative Group (AICCG)
    • Bi-annual representations on legislative and procedural issues around customs
  8. Procedural issues
    • Digital filing of appeals under customs
    • Amnesty scheme to settle past disputes
    • Prioritization of re-assessment of bill of entries

September 2024

1. Rate Rationalisation:

● Comprehensive review of duty structure
● Clarification on Basic Customs Duty on Lab chemicals
● Duties on Lubricants and Spare parts of Airline Industry

2. CAROTAR (Customs Administration of Rules of Origin under Trade Agreements) Rules:

● Procedural and interpretation issues leading to delays in shipments clearance
● Expediting furnishing of verification reports by country of origin
● Release of Bank Guarantees
● Issues in availing other Free Trade Agreement Benefits

3. Classification Disputes:

● Electronics Industry
● Medical/Pharmaceutical Industry
● Semiconductor Industry
● Telecom Industry
● Heavy Engineering
● Fast Moving Consumer Goods Industry
● Second-hand products for Research & Development

4. Remission of Duties and Taxes on Exported Products (RoDTEP) scheme:

● Issues in availing benefits under the scheme
● Recommendations on applicable rates

5. Special Valuation Branch (SVB):

● Request for time bound investigations

6. Authorised Economic Operators (AEO) Scheme:

● Support in expediting license
● Issues in availing benefits
● Policy recommendations on further strengthening the scheme

7. All India Customs Consultative Group (AICCG):

● Bi-annual representations on legislative and procedural issues around customs

August 2024

1. Comprehensive review of custom rate structure.

2. Focused advocacies around:

● Basic Customs Duty on all goods (excluding undenatured ethyl alcohol) for laboratory and Research & Development
● Use of different Harmonized System of Nomenclature (HSNs) for different medical devices categories
● Rationalisation of duties and Taxes on Fuel, Lubricants, and temporary import of Spare parts used by foreign airlines
● CAROTAR implementation issues across sectors
● Issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products
● Exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from Manufacturing & Other Operations in Warehouse (MOOWR) scheme under section 65A
● Issues in availing benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme
● Special Valuation Branch (SVB) for the time bound investigations

July 2024

1. Initiate advocacy on implications of duties and taxes on import of lubricants and spare parts

2. Submitted industry recommendations on Draft Central Excise Bill, 2024 to the Central Board of Indirect Taxes & Customs – June 26

3. Ongoing advocacy on:

∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse Regulation scheme (MOOWR) ∘ Use of different Harmonized System of Nomenclature for different categories of medical devices
∘ Addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products
∘ Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR) implementation issues across sectors
∘ Addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade
∘ Addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade

∘ use of different Harmonized System of Nomenclature for different categories of medical devices

∘ addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products

∘ Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR) implementation issues across sectors

∘ addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade

∘ addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade

June 2024

1. Submitted industry recommendations on Draft Central Excise Bill, 2024 to the Central Board of Indirect Taxes & Customs – June 26

2. Submitted agenda points for 18th All India Customs consultative group meeting on June 12th

3. Use of different Harmonized System of Nomenclature (HSNs) for different categories of medical devices.

4. Addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products

5. Submit agenda points for 18th All India Customs consultative group meeting.

6. Ongoing advocacy on:

∘ CAROTAR implementation issues across sectors.
∘ Addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade (DGFT).
∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse scheme.
∘ Custom duty rationalisation on select products including Cocoa.

∘ CAROTAR implementation issues across sectors.

∘ Addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade (DGFT).

∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse scheme.

∘ Custom duty rationalisation on select products including Cocoa.

Use of different Harmonized System of Nomenclature (HSNs) for different categories of medical devices.
Addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products.
Forum to submit agenda points for 18th All India Customs consultative group meeting
∘ CAROTAR implementation issues across sectors

∘ Addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade (DGFT)

∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse scheme

∘ Custom duty rationalisation on select products including Cocoa

May 2024

1. Submit agenda points for 18th All India Customs consultative group meeting.

2. Ongoing advocacy on:

∘ CAROTAR implementation issues across sectors
∘ Classification of select medical equipment
∘ Addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade (DGFT)
∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse scheme
∘ Custom duty rationalisation on select products including Cocoa

∘ CAROTAR implementation issues across sectors

∘ Classification of select medical equipment

∘ Addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade (DGFT)

∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse scheme

∘ Custom duty rationalisation on select products including Cocoa

Forum to submit agenda points for 18th All India Customs consultative group meeting.
∘ CAROTAR implementation issues across sectors

∘ Classification of select medical equipment

∘ Addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade (DGFT)

∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse scheme

∘ Custom duty rationalisation on select products including Cocoa

April 2024

1. Ongoing advocacy on:

∘ Custom duty rationalisation on select products.

∘ Custom duty rationalisation on select products.

∘ Custom duty rationalisation on select products.

March 2024

1. Ongoing advocacy on:

∘ Addressing issues in obtaining refunds under the erstwhile Service Exports from India Scheme (SEIS)
∘ Timely clearance of shipments containing second-hand testing equipment which are categorised as “restrictive” by DGFT
∘ Addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products
∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse (MOOWR) scheme under section 65A
∘ Need for clarification on customs duty applicability on import of materials required for the purpose of conducting bioequivalence studies

∘ Addressing issues in obtaining refunds under the erstwhile Service Exports from India Scheme (SEIS)

∘ Timely clearance of shipments containing second-hand testing equipment which are categorised as “restrictive” by DGFT

∘ Addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products

∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse (MOOWR) scheme under section 65A

∘ Need for clarification on customs duty applicability on import of materials required for the purpose of conducting bioequivalence studies

∘ Addressing issues in obtaining refunds under the erstwhile Service Exports from India Scheme (SEIS)

∘ Timely clearance of shipments containing second-hand testing equipment which are categorised as “restrictive” by DGFT

∘ Addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products

∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse (MOOWR) scheme under section 65A

∘ Need for clarification on customs duty applicability on import of materials required for the purpose of conducting bioequivalence studies

February 2024

1. Government has clarified that the notification of Indian Trade Classification (Harmonised System) of Export Items, 2023 does not include any new policy changes or amendments and the policies as applicable before the issuance of this notification shall continue. Trade notice can be accessed here and DGFT notification here

Trade notice can be accessed here and DGFT notification here

2. Initiate advocacy for clarification on applicability of customs duty on import of materials required for the purpose of conducting bioequivalence studies.

3. Industry consultation with Member (Customs), JS (Customs) and Department of Telecom (DoT) for addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products.

4. Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse (MOOWR) scheme under section 65A

5. Ongoing advocacy on:

∘ Addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products.
∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse (MOOWR) scheme under section 65A.
∘ Timely clearance of shipments containing second-hand testing equipment which are categorised as restrictive by DGFT
∘ Need for clarification on customs duty applicability on import of materials required for the purpose of conducting bioequivalence studies

∘ Addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products.

∘ Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse (MOOWR) scheme under section 65A.

∘ Timely clearance of shipments containing second-hand testing equipment which are categorised as restrictive by DGFT

∘ Need for clarification on customs duty applicability on import of materials required for the purpose of conducting bioequivalence studies
Trade notice can be accessed here and DGFT notification here
Forum to initiate advocacy for clarification on applicability of customs duty on import of materials required for the purpose of conducting bioequivalence studies
Ongoing advocacy on

1. Addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products.

2. Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse (MOOWR) scheme under section 65A.

3. Timely clearance of shipments containing second-hand testing equipment which are categorised as restrictive by DGFT

4. Need for clarification on customs duty applicability on import of materials required for the purpose of conducting bioequivalence studies
Industry consultation with Member (Customs), JS (Customs) and Department of Telecom (DoT) for addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products.
Pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse (MOOWR) scheme under section 65A

January 2024

1. Government reduces import duty on key components of mobile phones from 15% to 10%. Refer summary here and notification here

Refer summary here and notification here

2. Circular classifying Telecom products and equipment

3. Pursue exemption for sectors like telecom and certain medical equipments from the application of Manufacturing & Other Operations in Warehouse (MOOWR) Scheme under Section 65A of Customs Act.

4. Continued duty deferment for items like solar modules, vials, glass tubes, medical refrigeration equipments and telecom products under Manufacturing & Other Operations in Warehouse (MOOWR) Scheme of Customs Act.

Refer summary here and notification here
Circular classifying Telecom products and equipment
Pursue exemption for sectors like telecom and certain medical equipments from the application of Manufacturing & Other Operations in Warehouse (MOOWR) Scheme under Section 65A of Customs Act.
Continued duty deferment for items like solar modules, vials, glass tubes, medical refrigeration equipments and telecom products under Manufacturing & Other Operations in Warehouse (MOOWR) Scheme of Customs Act.

December 2023

Ongoing advocacy to address difficulties emerging from:

(a) Circular classifying Telecom products and equipment.

(b) pursue exemption for sectors like telecom and certain medical equipments from the application of Manufacturing & Other Operations in Warehouse (MOOWR) Scheme under Section 65A of Customs Act.
NCTC (CBIC) alert on import of cocoa products.
Circular classifying Telecom products and equipment pursue exemption for sectors like telecom and certain medical equipment from the application of Manufacturing & Other Operations in Warehouse (MOOWR) Scheme under Section 65A of Customs Act.
NCTC (CBIC) alert on import of cocoa products.
Clarifications on decision to implement mandatory additional qualifiers in import/export declarations for specified chemicals goods coming into force from 15 October 2023 pursue exemption for sectors like telecom and certain medical equipments from the application of Manufacturing & Other Operations in Warehouse (MOOWR) Scheme under Section 65A of Customs Act.
As a result of a focused advocacy of the Forum, Ministry of Finance in consultation with Department of chemicals has released additional qualifiers for import/export of specified chemicals to enable implementation of the Circular No. 15/2023-Customs from October 1, 2023 on trail basis. Circular is accessible here.
Directorate General of Foreign Trade has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for export of goods upto 30 June 2024 (Notification accessible here). Forum continues to engage with the Directorate General for Foreign Trade (DGFT) and Ministry of Finance for addressing issues in availing benefits under the scheme.
FAQs based on industry feedback to address difficulties emerging from Circular classifying Telecom products and equipment

Finance Ministry defers implementation of Customs Circular requiring additional declarations for import/export of specified chemical products, pursuant to Forum’s advocacy efforts with CBIC.

CBIC issues Circular on Customs Verification of EPR Certificates under Battery Waste Management Rules, 2022.
CBIC prescribes procedure for payment of IGST and cess on non-fulfilment of pre-import condition and manner of claiming ITC pursuant to SC order.

The Central Board of Indirect Taxes and Customs (CBIC) has amended Project Imports Regulations,1986 to exclude solar power plants and solar power projects from specified projects entitled to concessional rate of duty for import of goods, effective October 20, 2022. The Notification No. 54/2022 – Customs dated October 19, 2022 can be accessed here.

CBIC has issued a notification to include “Industrial Valves” classifiable under HSN 8481 in List 33 of the Notification 50/2017 – Customs, dated June 30, 2017 (‘Master exemption notification’) and these goods shall now be exempt from customs duty and eligible for concessional GST. USISPF had been advocating for the inclusion of these goods in the exemption list on behalf of its members in the oil & gas sector. Since Industrial Valves are widely used for oil & gas exploration works, this is a major relief for the petroleum and gas industry. The Notification No. 50/2022-Customs, dated September 27, 2022 can be accessed here.

CBIC issued a circular on Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (IGCRS Rules), which is set to supersede the existing Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR Rules).
As per current norms, display assembly for use in manufacture of mobile phone attracts a concessional customs duty rate of 10% while inputs or parts used therein attract Nil duty. In view of misdeclaration of display assembly imported as parts, CBIC has clarified that concessional rate of 10% will not be applicable when display assembly comes with additional parts other than the ones specified. In such a case, duty shall be levied at the rate of 15%. The Circular No. 14/2022-Customs dated August 18, 2022 can be accessed here.

Pursuant to the earlier advisory dated June 28, 2022 pertaining to Anonymised Escalation Mechanism under Faceless Assessment for submitting grievance regarding delay in clearance of Bill of Entry, the Central Board of Indirect Taxes & Customs has issued an additional advisory to enable the option to track and file grievance using ICEGATE portal. The advisory dated August 02, 2022 can be accessed.

CBIC instructs Officers under field formations to be sensitive in applying CAROTAR rules by maintaining consistency with the provisions of relevant trade agreements or its Rules of Origin. The instruction dated August 17, 2022 can be accessed here.

As part of its Faceless Assessment Scheme under Customs, CBIC has issued an advisory for steps to be followed by ICEGATE registered users seeking to opt for Anonymised Escalation Mechanism in respect of grievances filed for delay in clearance of Bill of Entry. The advisory dated June 28, 2022 laying down these steps can be accessed.

CBIC has extended the validity of exemption from Basic Customs Duty and Agriculture Infrastructure and Development Cess on import of raw cotton. The exemption shall now be valid up to October 31, 2022, and the Notification No. 38/2022-Customs dated July 04, 2022 can be accessed here.
In continuance of its objective to implement a simplified regulatory framework for e-commerce exports of jewellery, CBIC issued a SOP for exports through International Courier Terminals to bring uniformity and certainty in the process. The SOP is applicable on e-commerce export of jewellery made of precious metals and imitation jewellery. The Circular No. 09/2022-Customs dated June 30, 2022 can be accessed here.

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