Customs

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 13th 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 12th 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. 

For further details please reach us here

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. For further details, please write to @Shweta Kathuria 

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 13th 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 12th 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. 

USISPF submission on request to exempt Online Information and Database Access Retrieval (‘OIDAR’) service providers from GST Annual and Audit report as required under Section 35(5) and Section 44 of the CGST Act, 2017 - GST

India Tax

USISPF submits feedback to the CBDT committee on profit attribution in case of a permanent establishment in India – May 2019 – Direct taxes

USISPF submits recommendations for Union Budget 2019 – June 2019 – others

The Union Budget will be presented by the newly-appointed Finance Minister Ms Nirmala Sitharaman on July 5, 2019 in first session of Parliament for the new Government that begins June 17 and continues till July 26, 2019. USISPF has submitted our key asks for Budget 2019 across industries as our Pre-budget memorandum. Focus of our recommendations this year is:

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