Indirect Tax
Customs
CBIC clarifies the procedure for inter-unit transfer of goods under MOOWR
Instruction No. 16/2024 dated 25 June 2024
The Central Board of Indirect Taxes and Customs (CBIC) has provided below clarification on the transfer of resultant goods from one Manufacturing and Other Operations in Warehouse Regulations (MOOWR) unit to another:
- MOOWR, in effect, provides that the deferred customs duty on the warehoused goods becomes payable only when the resultant goods are cleared for home consumption by filing the Ex-Bond Bill of Entry.
- Such inter-unit transfer is permitted,
subject to the following conditions:
- A one-time lock is to be affixed at the time of dispatch and the licensee should verify the intactness of such lock.
- Reconciliation of the quantity received in the transfer form (a complete description of the resultant goods and the warehoused goods contained therein must be properly mentioned).
- The form must be duly endorsed by the licensee or warehouse keeper of the dispatching warehouse and the receiving warehouse.
- The transfer must be duly intimated to the Bond Officer.
- The Triple Duty Bond of the transferee/receiver will be debited and that of the transferor/supplier will be re-credited.
TRU clarifies the applicability of concessional 10% BCD on 'display assembly of cellular mobile phones'
Circular No. 06/2024-Customs dated 7 June 2024
In partial modification of Circular No. 14/2022-Customs dated 18 August 2022, the Tax Research Unit (TRU) has clarified as follows:
- Attachment of frame/support
structure, receiver mesh, speaker
net, foam, sticker, protective film
and/or conductive cloth on the
display assembly does not alter
the essential characteristic of
the display in any manner and
accordingly, the assembly would
continue to be treated as ‘Display
Assembly of cellular mobile phone.’
Similarly, where the SIM socket, SIM tray, antenna pin, side keys like power key, slider switch and volume button are imported as an integrated part (already fabricated, embedded, fitted or attached to the assembly) with the Display Assembly of cellular mobile phone, the Basic Customs Duty (BCD) rate of 10% shall be applied on the whole integrated assembly. - However, if these items/components are imported individually, they will attract the BCD rate as applicable.
- On the other hand, if the following items are fabricated, embedded, fitted or attached to the display assembly, the benefit of concessional BCD would not be available. Instead, such assembly is to be treated as a general part of cellular mobile phone attracting BCD rate as applicable: (a) Printed Circuit Board Assembly (PCBA) of mobile phone, (b) main lens for feature phones, (c) housing of mobile phone, (d) speakers, (e) charger/adaptor, (f) camera module, (g) keypad of feature phone, etc.
Government extends provisional Anti-Dumping Duty on ‘Emulsion PVC Resins’ by six months
Notification No. 09/2024-Customs (ADD) dated 13 June 2024
The government has decided to extend the imposition of provisional anti-dumping duty at varied rates on the import of ‘Poly Vinyl Chloride Paste Resin’ (also known as ‘Emulsion PVC Resin’) from China PR, Korea RP, Malaysia, Taiwan, Thailand and Norway. The levy will be effective for six months and be payable in Indian currency. However, the following products are excluded – (a) PUC with a K value below 60K, (b) PVC Blending Resin, (c) Co-polymers of PVC Paste Resin, (d) Battery separator resins, and (e) the brand name 'Biovyn' produced by Innovyn Europe Ltd.
Foreign Trade Policy (FTP)
DGFT relaxes 'Bill of Export' requirement to substantiate EO discharge under Advance Authorization
Policy Circular No. 04/2024 dated 3 June 2024
In response to the compliance hardships faced by the exporters, the Directorate General of Foreign Trade (DGFT) has decided to relax the requirement of submission of ‘Bill of Export’ in case of supplies made before 1 July 2017 to SEZ unit/developer/codeveloper under Advance Authorization/ DFIA. Accordingly, for the purpose of fulfillment of export obligation (EO), the exporter may submit the following alternative corroborative evidence:
- ARE-1 (showing the Advance Authorization No./DFIA File No.) duly attested by the jurisdictional Central Excise/GST Authorities of Authorization-holder/exporter.
- Evidence of receipt of supplies by the SEZ recipient.
- Evidence of payment made by the SEZ unit to the exporter as per Para 4.21 of FTP.
Government restricts the import of specific gold products, except under India-UAE CEPA TRQ
Notification No. 17/2024-25 dated 11 June 2024
The government has restricted the import of specified gold products of ITC (HS) Code 71131912, 71131913, 71131914, 71131915 and 71131960 with immediate effect. However, the same would be permitted under a valid India-UAE Comprehensive Economic Partnership Agreement (CEPA) Tariff Rate Quota (TRQ) without restricted import authorization.
DGFT eases compliance for obtaining EODC in case of deemed exports under Advance Authorizations
Public Notice No. 09/2024 dated 6 June 2024
The DGFT has revised Para 2(b) of the ‘Guidelines for Applicants’ under ANF-4F of HBP 2023 to simplify the procedure and reduce the compliance burden for applying for Export Obligation Discharge Certificate (EODC) against deemed exports under Advance Authorizations.
Accordingly, the applicants can now submit:
- Copies of system-generated GST e-invoices and corresponding e-way bills (copies of invoices or statements of invoices duly certified by GST authorities of supplier/ recipient where system-generated documents cannot be provided).
- Copy of the shipping bill with the name of the domestic supplier as the intermediate supplier endorsed on it, along with the file no./authorization no. of the ultimate exporter and intermediate supplier (in case of intermediate supplies to the port directly for export).
- e-BRCs.
- Statement of supplies/exports and imports made and actual consumption of inputs, duly certified by an independent Chartered Accountant.