UNION BUDGET 2020 Customs

UNION BUDGET 2020 Customs

NEW Section 28DA FOR Free Trade Agreement (FTAs)

➢ A New Chapter VAA ( a new section 28DA) introduced to provide for enabling provisions for administering the preferential tariff treatment regime under Trade Agreements.

➢ The proposed new section seeks to specifically provide for certain obligations on the importer and prescribe for time-bound verification from exporting country in case of doubt.

➢ Pending verification preferential tariff treatment shall be suspended and goods shall be cleared only on furnishing security equal to the differential duty

➢ In certain cases, the preferential tax treatments may be denied without further verifications.

i. Tariff item is not eligible for preferential tariff treatment.

ii. A complete description of goods is not contained in the certificate of origin.

iii. Any alteration in the certificate of origin is not authenticated by the Issuing Authority.

iv. The Certificate of Origin is produced after the period of its expiry.

This emphasizes that the Government is bound to implement measures for bringing ease of compliance and minimum human intervention.

Electronic Duty Credit Ledger

A new section 51B is inserted so as to provide for the creation of an Electronic Duty Credit Ledger in the customs system.

➢ The duty credit available in EDCL may be used:

(a) By the person to whom it is issued or the person to whom it is transferred.

(b) Towards making payment of duties payable under this Act or under the Customs Tariff Act.

➢ It may be linked to the GSTN portal by syncing the customs law with GST law.

CUSTOMS TARIFF ACT, 1962

Safeguard measures

➢ Section 8B is being substituted with a new section to empower the central govt. To apply safeguard measures, in case any article is imported into India in such increased quantities and under such conditions so as to cause or threatening to cause serious injury to the domestic industry. Safeguard measure shall include the imposition of a safeguard duty or application of a tariff-rate quota or any other measure that the central govt. May consider appropriate as a safeguard measure.

➢ Safeguard Measures shall include:

(a) Imposing of Safeguard duty.

(b) Application of tariff Rate Quota.

(c) Or such other measures.

IMPORT OF MEDICAL EQUIPMENTS

➢ Health cess is being imposed on the import of medical devices falling under the heading 9018 to 9022, at the rate of 5% ad valorem on the import value of such goods as determined under section 14 of the customs act 1962.

– 9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientific graphic apparatus, other electro-medical apparatus, and sight testing instruments

– 9019 Mechanotherapy appliances, massage apparatus, psychological aptitude testing apparatus, ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus

– 9020 Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts nor replacement filters

– 9021 Orthopaedic appliances, including crutches, surgical belts and trusses, splints and other fracture appliances, artificial parts of the body, hearing aids and other appliances which are worn or carried or implanted in the body to compensate for a defect or disability

– 9022 Apparatus based on the use of X-rays or of alpha, beta or gamma radiations whether or not for medical, surgical, dental or veterinary uses, including radiography or radiotherapy apparatus, X-Ray Tubes and other X-Ray Generators, high tension generators, control panels and desks, screens, examination or treatment tables, chairs and the like.

➢ This Health cess shall be a duty of customs.

➢ Health Cess shall not be imposed on medical devices which are exempt from BCD.

➢ Further inputs/parts used in the manufacture of medical devices will also be exempt from Health Cess.

➢ Export Promotion scripts shall not be used for payment of the said cess.

➢ This has been done to help domestic manufacturers.

➢ Changes are being made in the Customs Tariff ( Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for determination of Injury ) Rules 1995 to strengthen the anti-circumvention measures by making them more comprehensive and wider in scope to deal with the case of circumvention.

➢ Certain other changes are being made in these rules for bringing clarity in the scope of these Rules.

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