Whether safeguard duty imposed under section 8C of Customs Tariff Act 1975, is exempted for import goods from China under Advance Authorisation Scheme.

1  That   investigation under section 8 B of the Customs Tariff Act ,1975 ,is for “ Serious injury “ whereas   for  “market disruption” is under  Section 8 C  of the Customs Tariff Act ,1975.   The test for “ Serious injury “  is very stringent  compare to  “market disruption”. And when   Safeguard  duty  on  import of any  goods from  China  under Section 8 B  is exempted under  Advance Authorisation  but    Safeguard Duty  imposed on import of any  goods from  China   under Section 8 C  of the Customs Tariff Act ,1975, is not exempted  under  Advance Authorisation  Scheme goes against very nature of  Safeguard  Duty  measure and protection.

2.Hence , by denying exemption  benefits of  Safeguard  duty  imposed under  section 8 C of the Tariff Act ,1975, it also amount denying exemption  benefits of  Anti -dumping duty  under  Customs Notification  96/2009.  This is against the very purpose of the Notification benefit issued for import under Advance Authorisation  Scheme.

3. That  if Anti-dumping duty is not taken into accounts  for determining Safeguard duty on  such import then  such Safeguard duty  amount will be  higher than  duty levied by Customs Notification   , 4 / 2012-Customs (SG)  ,dated the 5th October, 2012, against the final findings of DG( SG) and also violation of  rule 12 of the Customs Tariff (Transitional Product Specific Safeguard Duty) Rules, 2002.

4.Further,  that the both the Customs Notification, namely:  No.96/2009- Cus,Dated 11.09.2009  and 

No.93/2004 –Cus, Dated 10.09.2004, are still in force.  Therefore, if the same material is imported  from China under Advance Authorisation Scheme issued under previous FTP ( 2004-2009), then, it is not subjected to any safeguard duty imposed under Section 8 C of  the Customs Customs Tariff Act ,1975. But  , import of such material from China under Advance Authorisation issued under present FTP (2009-2014) are subjected to safeguard duty imposed under Section 8 C of the the Customs Customs Tariff Act ,1975. Thus, this charging of safeguard duty to import input under   section   8 C of the Customs Tariff Act ,1975 is against the provisions and principles of FTP and discriminatory in nature.  

5.The imported carbon black from China is to be incorporated into goods meant for export purpose. Hence, they are not for sale into domestic market and such goods cannot cause any injury to domestic market. Therefore, there is no safeguard duty can be imposed on such goods even under section 8 C of the said tariff Act.

  

4.Further, we submit that the both the Customs Notification, namely:  No.96/2009- Cus,Dated 11.09.2009  and No.93/2004 –Cus, Dated 10.09.2004, are still in force.  Therefore, if the same material is imported  from China under Advance Authorisation Scheme issued under previous FTP ( 2004-2009), then, it is not subjected to any safeguard duty imposed under Section 8 C of  the Customs Customs Tariff Act ,1975. But  , import of such material from China under Advance Authorisation issued under present FTP (2009-2014) are subjected to safeguard duty imposed under Section 8 C of the the Customs Customs Tariff Act ,1975. Thus, this charging of safeguard duty to import input under   section   8 C of the Customs Tariff Act ,1975 is against the provisions and principles of FTP and discriminatory in nature.

5.The imported carbon black from China is to be incorporated into goods meant for export purpose. Hence, they are not for sale into domestic market and such goods cannot cause any injury to domestic market. Therefore, there is no safeguard duty can be imposed on such goods even under section 8 C of the said tariff Act.

 If you require any further clarification on this draft, pl free to contact.

 

Thanks and Regards

Ravindra Kumar
Founder & CEO
Indirect Tax & Supply Chain
Global Tax Guru | Global Supply Chain Guru | Global Cad Guru
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