Customs

Forum makes submission to office of Directorate of International Customs summarising on-ground challenges at various ports.

US-India Tax Forum submitted its Pre-Budget Memorandum(s) to the Tax Planning Legislation Unit (for Direct Taxes) and Tax Research Unit (for Indirect Taxes – Customs) of the Ministry of Finance based on inputs received from more than 30 member companies across various sectors. Our recommendations cover duty rate changes, ease of compliance, ease of doing business, suggestions to reduce tax litigation, leveraging technology for tax administration etc., amongst other procedural and legislative changes. For further details, please write to Anikha Ashraf at [email protected]

The Forum submitted industry feedback/comments on the draft Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2022 framed by the Central Board of Indirect Taxes & Customs. The Rules would operationalize an amendment made by the Finance Act, 2022 to the provisions governing valuation of certain categories of goods being imported.

The Forum submitted inputs on behalf of its members for listing in the agenda of 16th meeting of All India Customs Consultative Group.

The ADVAIT module was launched by CBIC earlier this year to examine and flag variances in import assessable value. The use of the above model is however leading to inordinate delays in customs clearances, and the lack of standardised instructions is also leading to challenges at the ground level. In view of the above, the Forum is looking to engage with officials at CBIC to share industry concerns and make a request for clarificatory guidelines.

In line with the industry expectation, forum submitted a representation to highlight the impact of amendment made in S.No. 404 of Notification 50/2017 vide Notification No.02/2022 Customs Dated 01 February 2022.

The 15th All India customs consultative group (AICCG) meeting which is run by the Directorate General of Export Promotions (Central Board of Indirect taxes & Customs) is scheduled to be held soon. In relation to the same USISPF has submitted agenda on customs related issues of companies across sectors. The Consultative group is chaired by the Member (Customs) and is supported by the officials of CBIC and GST.

The 15^th All India customs consultative group (AICCG) meeting which is run by the Directorate General of Export Promotions (Central Board of Indirect taxes & Customs) is scheduled to be held soon. In relation to the same USISPF is invited to share and represent the customs related issues of companies across sectors. The Consultative group is chaired by the Member (Customs) and is supported by the officials of CBIC and GST. Please do not share the issues which have been discussed and responded to by the AICCG earlier.

The 14th All India Customs consultative group meeting was held on July 27, 2021. The Forum participated in the meeting to discuss custom issues of our member companies. The meeting was chaired by Member (Customs) and several officials from the CBIC and state custom authorities were present to address specific concerns as submitted by the forum.

Budget 2021 proposed to review some of the existing Customs Exemption Notifications in order to make them more relevant. In this context, Ministry of Finance has identified first set of Custom exemptions for the purpose of review (list available here ). Suggestions are invited from stakeholders only on these notifications with the need for review of the notification, amendment in wording of the notification for bringing clarity, consolidation, other relevant factors such as extent of use, etc. The recommendations/ suggestions can be made here . You can also share your suggestions with us in the below format by August 3, 2021.

The 14th All India customs consultative group meeting which is run by the Directorate General of Export Promotions (Central Board of Indirect taxes) is scheduled to be held soon. In relation to the same USISPF was invited to share and represent the customs related issues of companies across sectors. The Consultative group is chaired by the Member (Customs) and is supported by the officials of CBIC and GST. Forum submitted a detailed submission on key custom issues across sectors and we look forward to participate at the upcoming consultation.

In continuation to our ongoing engagement on implementation of the Faceless Assessment scheme under Customs and the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) forum shared company specific details with MoF. We will be following up for discussions around those issues in weeks to come.

US-India Strategic Partnership Forum has been regularly engaging with CBIC seeking clarifications on various challenges and issues that have been highlighted by Industry on above two initiatives.  Several of these issues have been addressed over the course of the last few weeks.  However, there are still some aspects that need to be looked into and basis the inputs received from our members, we recently made a submission to CBIC.

USISPF hosted an Interactive session on Trade Facilitation measures including Faceless Assessment under Customs with Central Board of Indirect taxes & Customs officials. Further to the webinar and on the basis of the feedback received from our members we have submitted details suggestions on how to make the scheme effective.

As the industry continued to navigate through new challenges and commences business activity we brought to the attention of CBIC few concerns pertaining to duties levied on telecom products and the delays in clearances on account of the Artificial Intelligence tool being deployed at the ports.

Being cognizant of the need to do aggressive testing, Department of Revenue had in April 2020 exempted imports of various items, such as Covid-19 test kits, ventilators and face masks from import duty and the health cess. The exemption is valid September 30, 2020. Post this date there will be an imposition of customs duty on COVID 19 testing kits and related essentials as provided under the notification. Forum has requested that the custom duty exemption and the 5% health cess on COVID-19 testing kits and other essentials which are critical in the government’s fight against the COVID-19 pandemic should be extended further for at least 12 more months or such period deemed reasonable by the government to control the pandemic. 

The 13^th All India customs consultative group meeting which is run by the Directorate General of Export Promotions (Central Board of Indirect taxes) is scheduled to be held soon. In relation to the same USISPF was invited to share and represent the customs related issues of companies across sectors. The Consultative group is chaired by the Member (Customs) and is supported by the officials of CBIC and GST. Forum submitted a detailed submission on key custom issues across sectors and we look forward to participate at the upcoming consultation. 

Further to the announcement made by the Hon’ble Finance Minister in Budget 2020, Ministry of Finance is looking to review the existing Customs exemption notifications with an objective of making suitable amendments in the  notifications which may have outlived their utility or have become outdated.  Basis the feedback received from our members Forum submitted detailed suggestions with CBIC, Ministry of Finance.

Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL, Set-up by Ministry of Commerce and Industry, Govt of India) had proposed an additional import duty of 15% COVID 19 import tax on chemicals and other products imported during the period from 1 May 2020 to 31 march 2021. It was  recommended to be imposed on imports of all products under Customs Tariff chapters 28, 29, 32, 38, 39, 40, 54, 55 during the period 1 May 2020 to 31 March 2021 be assessed on provisional basis.  On behalf of the Agro-chemical industry, Pharma industry and other impacted sectors doing manufacturing in India, USISPF has written a letter requesting for reconsideration of imposition of this tax. 

The 12^th All India customs consultative group meeting which is run by the Directorate General of Export Promotions (Central Board of Indirect taxes) is scheduled to be held in February 2020. In relation to the same USISPF is invited to share and represent the customs related issues of companies across sectors. The Consultative group is chaired by the Member (Customs) and is supported by the officials of CBIC and GST. Forum submitted a detailed submission on key custom issues across sectors and we look forward to participate at the upcoming consultation. 

Budget 2019 had deleted the entry pertaining to ‘Routers’ from the First Schedule to the Customs Tariff Act (‘CTA’), 1975 which allowed a zero duty on routers. The implication of such deletion was an imposition of customs duty on import of routers in India. USISPF on behalf of its members companies have submitted a detailed recommendation to reinstate Zero duty highlighting the impact of such tariffs on cost of imports and exports thereof. We look forward to engaging with the Government towards an early resolution.