Refund of 4% Additional Duty of Customs (4% CVD) in terms of Notification No. 102/2007-Customs dated 14.09.2001-regarding.

 Circular No 01/ 2012-Customs

F.No.401/46/2008-Cus.III

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

North Block, Room No. 253-A,

New Delhi, the 5^thJanuary 2012.

To,

All Chief Commissioners of Customs / Customs (Prev.).

All Chief Commissioners of Customs & Central Excise.

All Commissioners of Customs / Customs (Prev.).

All Commissioners of Customs & Central Excise.

Subject: Refund of 4% Additional Duty of Customs (4% CVD) in terms of Notification No. 102/2007-Customs dated 14.09.2001-regarding.

                                                  

Sir / Madam,

           

          Your kind attention is invited to the Circular No. 18/2010-Customs dated 8th July, 2010), vide which Board has simplified procedure for sanction of refund of 4% SAD in case of ACP importers. Vide Para 4.1 (d) of the Circular No.18/2010-Customs, dated 08.07.2010 it was provided that the amount of 4% CVD refund shall be sanctioned in full, on preliminary scrutiny of the documents and certificate of statutory auditor/Chartered Accountant, for correlating the payment of ST/VAT on the imported goods with the invoices of sale and also to the effect that the burden of 4% CVD has not been passed on by the importer to the buyer. However, as Para 6 of the said Circular only Charted Accountant can issue a certificate that incidence of burden of 4% CVD has not been passed on by the importer to the buyer.

2.         Representations have been received in the Board for amending Para 6 of the said Circular to make it in consonance to Para 4.1 (d) ibid to enable Cost Accountants to issue the Certificates as statutory auditors for the purpose of refund of 4% CVD.

3.          The matter has been examined in the Board. Board noted that the Circular No.18/2010-Customs dated 08.07.2010 disentitles Cost Accountants in regard to issue of requisite certificate though they may be statutory auditors of the importer. Board also observed that several States currently recognize Cost Accountants for purpose of VAT audit and it would be a hardship to trade already using statutory auditors/Cost Accountants to get required certificate for amount of 4% refund from Chartered Accountants. Therefore, as a measure to facilitate the trade Board has approved the amendment of the Circular No.18/2010 Customs dated 08.07.2010 so as to authorize Statutory Auditors/ Cost Accountants/ Chartered Accountants to issue a certificate, certifying that burden of 4% CVD has not been passed on by the importers to any other person.

4.         Accordingly, para 4.1(d) and Para 6 of Board Circular No.18/2011-Customs, dated 08.07.2010, stands modified to above extent.

5.       Suitable Public Notices or standing orders may be issued to guide the trade / industry and officers.

(Vikas)

Under Secretary (Customs-III/VI)

Procedures for dealing EXPORTED goods which are prohibited (Posted from any place to foreign country)

124.  Articles containing goods prohibited  from export. -  If an article
posted at any place in India and addressed to a foreign country is actually found,
while in course of transmission by post, to contain anything the export of which either
generally or to that particular destination is prohibited by the clause bearing the
heading “Local prohibitions” in the Inland Post section or by the clauses bearing the
heading “Articles Prohibited form export” in the Foreign Post, it should be endorsed
“Contains prohibited (name of the prohibited article)” and sent for disposal to the
R.L.O. either direct or, in the case of sub-offices, through the Head Office, except in
cases in which orders are in existence for the disposal of such articles in a different
manner.
NOTE.-  See also Rule 221 of the Indian Post Office Rules.- 1933.(Source: http://www.indiapost.gov.in/PM_VOL_5.pdf)

Procedures for dealing imported goods which are dutiable or prohibited at office of delivery(Post office)

123.   Articles prohibited from important or liable to customs duty. -   (1)
When there is good reasons to supposed that an article passing through the post
contains any goods (a) the import of which into Indian by post is prohibited, or (b)
when are liable to duty, it should be forwarded in a cover for in the case of a parcel, in
a bag) marked “Doubtful” addressed to the Postmaster of the office of destination,
with a note explaining the reasons for suspecting the article. Special case should be
exercised in the examination of bulky artic les of the inward foreign letter mail.

EXCEPTION 1. -   Any article of the class  referred to in (b) detected at the
offices of exchange of Mumbai, Kolkata, Chennai, Delhi and at the sub-exchange
offices alt Ahmedabad, Bangalore, cochin and Jaipur should be made over to the
nearest Collector of Customs and assessed before it is delivered or transmitted
onwards by post, as the case may be,  Articles containing fictitious stamps as defined
in sub-section (4) of Section 263-A of the Indian Penal Code, if detected at those
offices, should similarly be made over to the nearest Collector of Customs for
disposal.
EXCEPTION 2. -   inward articles of the foreign mail prepaid at the latter
rate which contain dutiable goods and are furnished on the address side with either a
green label marked “Douane” (Customs) showing the nature, weight and value of he
contents or a green label marked “Douane” accompanied  by a separate customs
declaring should be detained for customs examination.
(2)  If an article received for delivery (a) is suspected to contain anything
the important of which is prohibited or which is liable to duty or  (b) is enclosed in a
cover or bag marked “Doubtful”, the Postmaster should send a notice in writing to the
addressee inviting him to attend either in person or by agent within 48 hours at the
Post Office.  He should, under the authority given in Section 24 of the Post Office
Act, open and examine the article in the presence of the addressee or his agent, or in
his absence if he fails to attend within the time specified, reporting the matter to the
Head of the Circle.  In sub-offices, the opening and examination of the article should,
if the addressee fails to attend, be done in the presence of two respectable witnesses.
(3) When an article has been opened in the office of delivery, action
should be taken as follows:-
(a) If found to contain anything on which customs duty is payable it
should be sent to the nearest Collector of Customs for disposal.
(b) If found to contain any intoxicating drugs the importation of which is
prohibited, it should be made over with all its contents, to the nearest
Customs Collector for disposal in accordance with the provisions of
the Sea Customs Act, 1878 (VII of 1878), applicable to prohibitions
and restrictions imposed under Section. 19 of he said Act.  If found
to contain circulars relating to lotteries, it should  be forwarded to the
R.L.O. concerned for return to the sender. If found to contain unset
diamonds, fire-arms, military stores or articles, other than explosives,
included in the term  “ammunition” as defined in  the Indian Post
Office Rules relating to prohibited category articles, or fictitious as
defined in sub-section (4) of Section 263-A of the Indian Penal Code,
the article should not be delivered to the addressee, but the
Postmaster should at once take steps, in accordance with the
procedure laid down in the Postal Manual, Volume -VI, to forward
the article to  the chief post of the state nearest to the office of  delivery to be made over to the Customs authorities for any action
that may be considered necessary.  In cases where an article is found
to contain explosives, the Postmaster should act on the instructions
contained in Rule 122 (1) (a).  If the article is found to  contain
anything else, the importation of which is prohibited, it should be
detained and the case reported for the orders of the Head of the
Circle/Region.
(4) When once an article has been opened for the purposes mentioned
above, the Post Office is bound to exercise scrupulous care in checking and repacking
the contents at every stage so as to prevent loss or damage in transit.  T he out
covering used for repacking should be of sufficiently substantial material to afford
adequate protection to the contents.
(5) In the event of repacking of he insured foreign inward articles as
prescribed above, a demand from the addressee or the sender to have an open delivery
of such articles should be acceded to.
NOTE.-   In sub-offices, articles found to contain anything the importation
of which is prohibited should be sent to the Head Office, except when found to
contain intoxicating drugs in which case they should be made over with all the
contents to the nearest Collector of Customs for the adoption of such further
proceedings as may be deemed proper.

airport sorting office in India for AIR MAILS

Airport Sorting Office, Mumbai
Kokkata Air Sorting, Kolkata
Airport Sorting Office, Chennai

what is foreign post office and which is relevant for your delivery

13. Off ice of Exchange, Offices of exchange of transit bags, Foreign Post
Offices and Sub-Foreign Post Offices.-  (a) A Post Office or Sorting Office or Section
which exchanges mails with offices in foreign countries is known as an “Office of
Exchange”.    It is referred to as the dispatching office of exchange in respect of
mails it makes up and addresses to an office of exchange in another country, while it
is called the receiving office of exchange in respect of mails addressed to it  by an
office of exchange f rom another country.  The term “outward office of exchange” and
“inward office of exchange” are also used to describe them.  Even offices functioning
as both inward and outward offices of exchange may function in one of the capacities
only for certain countries.(b)  An Office of Exchange on the border which only receives and dispatches
closed bags addressed to or received from other offices of exchange in India is known
as an “Office of Exchange of transit”.   Such an office will not close bags for foreign
countries or open inward foreign bags.  Its function is only to exchange mails with the
carrier or with the officials of a foreign administration.
( c)  A “Foreign Post Office” is an office of exchange in which the work of
assessment of customs duty on foreign mails is also carried out. Although mails may
be intercepted (and articles not suspected to contain anything dutiable released) in
many exchange offices, the work of actual assessment of duty (and opening of articles
for this purpose where necess ary) is done only in the Foreign Post Offices.  Articles
received in one office of exchange and suspected to contain dutiable goods, for
delivery from an office nearer another office of exchange are directed to the latter for
actual examination and assessment of duty.
)
(d) A “Sub-Foreign Post Office” is an office which is not an exchange office
(i.e., which does not close bags for other countries and which does not receive from
foreign countries bags addressed it) but in which the work of customs examination,
assessment and accounting of customs duty is carried out.  Such sub-Foreign Post
Offices are opened mainly for the convenience of senders and addressees who may be
required to present documents, etc., for the release or dispatch of their foreign articles.

(Souce:http://www.indiapost.gov.in/PM_VOL_5.pdf)

Delivery of insured articles

42. Delivery of insured articles. – An article insured for any sum not exceeding Rs. 500
will be delivered in the ordinary manner.  An article insured for more than Rs. 500 will be
delivered only at the Post Office window, intimation of arrival being sent by the post office to the
addressee.  The addressee of an insured article or his agent, authorized in writing, must sign in ink
both the receipt and acknowledgement relating thereto unless the outward appearance of the cover
gives rise to suspicion of tampering.  In such cases he should arrange to open the article at the post
office, in the presence of the postmaster, and to have its contents entered in an inventory which
will be prepared in duplicate and must be signed by the addressee.  One copy of the signed
inventory will be forwarded by the post office to the sender with unsigned acknowledgement
attached to it.  In case, the addressee or his agent is not known to the staff of the post office from
which the insured article is to be delivered, the identification of the addressee or his age nt by a
person known to the post office staff or production of evidence which will establish his identity to
the satisfaction of the Postmaster will be necessary if so required by the delivering post office
official.
NOTE 1 : When an insured article issued for delivery is not accepted by the addressee it will not be sent out a
second time; an intimation of its arrival will be made over to him and the article will be delivered at the
post office on presentation of the intimation with the receipt and acknowledgement duly signed.  If the
addressee of an insured article after an intimation of its arrival has been delivered, omits to take
delivery of the article within the time specified in the intimation it will be returned to the sender as
refused.
NOTE 2 : When the receipt and acknowledgement duly signed together with the intimation are presented by the
addressee or his agent to the Post Office, he must place his signature on the intimation in the presence
of the delivery assistant of the post office and surrender the intimation to the post office if delivery is
taken.
43. Delivery of V.P. articles. – (1) If the amount to be recovered on a value payable article
exceeds Rs. 100 an intimation of its arrival will be sent by the office of destination to the
addressee.  Such article will be delivered at the post office on payment of the amount entered in
the form or receipt on the reverse of the intimation in cash and on presentation at the post office of
the intimation with the receipt on the reverse duly signed.
(2) If the amount to be recovered on a value-payable article does not exceed Rs. 100, the
article will be delivered to the addressee or his agent authorized in writing by the postman at the
addressee’s residence on payment of the amount recoverable and on the addressee or his agent
authorized in writing signing the receipt on the reverse of the intimation presented with the article.
(3) If the amount to be recovered on a value-payable article exceeds Rs.25 and the delivery
is to be made through a village postman or an extra-departmental delivery agent then the article is
delivered at the post office only in the manner prescribed in sub-clause (1).
(4) If the amount to be recovered on a value-payable article be not below Rs. 20 and the
article is taken delivery of at the counter of the post office, the amount may be paid either in cash
or by cheque under the conditions indicated in clause 94(a).

Delivery of registered articles

DELIVERY
35. Definition. – The delivery of a postal article at the house or office of the addressee or
to addressee or his servant or agent or other person considered to be authorized to receive the
article according to the usual manner of delivering postal articles to the addressee is deemed to be
delivered to the addressee under the Post Office Act.
36. Delivery of registered articles – No registered articles of any kind will be delivered to
the addressee unless and until he or his agent authorized in writing has signed a receipt for it, in the
prescribed form which will be presented to him for signature by the postman who delivers the
registered article.37. Refusal of registered articles presented for  delivery  – If the addressee, while
refusing to take delivery on presentation of the registered article to him, makes an application in
writing to the post office of delivery for the detention of the article or if the addressee is not found
at the address given on the article, the article shall be detained in the post office for a period not
exceeding 7 days from the date of its presentation to the addressee or from the date it is last sent
out for delivery as the case may be.  If the addressee fails to take  delivery of the article from the
post office within the said period of seven days, the article will be returned to the office of posting
for delivery to the sender.  The remark ‘Refused’ will be recorded on the article if the addressee
fails to take delivery after requesting for detention.
NOTE -  The expression ‘office of posting’ means the delivery post office which serves the address of the sender.
38. Special procedure for delivering registered articles to firms etc.  – Registered
articles for delivery to Firms, etc., which normally receive a large number of registered articles, are
entered in a special list in duplicate which is presented along with the articles acknowledgement
forms etc., to the addressee who will be required to sign the upper copy  in token of receipt of the
lower copy of the list along with all the articles and return the signed acknowledgements.  No
individual receipts will be prepared for the articles entered in the special list.  Articles on which
any charges are to be recovered will not be entered in the special list.
(Source:http://www.indiapost.gov.in/PO_Guide_Part-1.pdf)

damaged article and insured parcels

40. Delivery  of damaged registered article of the letter and parcel mail. – When a
registered articles of the letter mail or a parcel is received in the office of delivery in a damaged
condition, a notice will be sent by the postmaster of that office to the addressee requesting him to
attend the post office within seven days in the case of inland articles and fifteen days in the case of
foreign article to take delivery of it either personally or through an agent.  This notice will have to
be produced at the Post Office  before delivery is effected and if presented by an agent his name
should be entered on the form before it leaves the addressee’s custody.(Source:http://www.indiapost.gov.in/PO_Guide_Part-1.pdf)

Do not open parcel if there is a doubt that excess duty on foreign article has been asked

50. Refusal of articles.  – The addressee of an article is not bound to pay the amount due
on it to the Post Office if he does not want to take delivery of it.  In this case the word “Refused”
will be written by the Postman across the cover.
51. Obligation to pay charges. - When a person takes delivery of an article on which any
sum is due to the Post Office, he  must pay the amount marked upon it.  Any complaint of
overcharge should be made to the postmaster of the office of delivery to whom the article should
be taken before being opened.
52. Remedy of post office for recovery of charges due.  - If a person, after taking
delivery of an article on which any postage or other sum or customs duty is payable, refuses to pay
the amount marked as due, it will be recovered from him in the same way as a fine imposed under
the Post Office Act and the Post Office has further the power of withholding from him until such
charge be paid or recovered, any article addressed, to him not being on India Government Service.
( Source: http://www.indiapost.gov.in/PO_Guide_Part-1.pdf)

If customs duty is more than Rs 50 than parcels are delivered at Post office window

40. Delivery  of damaged registered article of the letter and parcel mail. – When a
registered articles of the letter mail or a parcel is received in the office of delivery in a damaged
condition, a notice will be sent by the postmaster of that office to the addressee requesting him to
attend the post office within seven days in the case of inland articles and fifteen days in the case of
foreign article to take delivery of it either personally or through an agent.  This notice will have to
be produced at the Post Office  before delivery is effected and if presented by an agent his name
should be entered on the form before it leaves the addressee’s custody.

41. Delivery of parcels and period of their detention at the office of  delivery  – (1) A
parcel which does not exceed 10 Kg. in weight (except Value-payable parcel and those addressed
to Poste Restante) will be issued for delivery only once and if it cannot be delivered through any
cause on first presentation by the postman it will be brought back to the post office and will not be
issued again for delivery.  A notice of arrival of the parcel will, however, be issued at the next
delivery through the postman to the addressee for taking delivery of the parcel either personally or
by an agent or messenger authorized for the purpose.  A parcel weighing above 10 kilograms in
weight will be delivered only at the post office window.  A similar notice will be issued to the
addressees in such a case also.  Should the addressee or his authorized agent fail to take delivery of
the parcel at the post office within seven days from the date of presentation of the notice, the parcel will, on the expiry of that period, be treated as “Unclaimed” and disposed of according to
the rules of the Department


44. Delivery of articles on which Customs duty is due - Articles on which customs duty
to be recovered is in excess of Rs. 50 are ordinarily delivered at the post office window, except in
the case of Presidency and all the post office window, except in the case of Presidency and all First
Class head Offices where this limit is fixed at Rs. 100.  Such duty may be paid either in cash or by
cheque, the latter under the conditions laid down in clause 94.
( Source: http://www.indiapost.gov.in/PO_Guide_Part-1.pdf

Need investor for Global Tax Guru portal.

Dear  Investor,

                        

This portal ,www.globaltaxguru.in ,as decision making tool , optimize  compliance and regulatory cost of import and export and add efficiency in global supply chain. It  is unique product  which fill gap  existing  between  online  seller and buyer (enhance choice for the large market if Indian middle-class buyers, aspiring to buy world class products at the best prices from the powerful international retailers – allows the Indian middle class to break free of the sundry importer with his high margins) for  their compliance and regulatory need and supply chain. Validity of concept and popularity of portal and blog can be seen by Search   and users comments. There is no such product exist in market .

  

                             It has identified  five medium of  global supply chain such as Postal ,Courier ,Baggage ,Air Cargo and Sea Cargo for  import and export of goods.

 It is to be emphasized that there are 7 lakhs Post office in World which act as last point of  delivery. But each country restricts and prohibit  flow of certain  goods through Postal Medium .If such information is available  before any person send parcel through Post , then , compliance risk can be minimized.  Thus , our portal , once it is completed, will take care of Global Postal Supply Chain.

In Courier industry , Cost of freight is very high and  nearly big four company is  dominating market. But alternatively , one can offer cost effective solution by combining Post with local courier companies.This untapped market can be exploited.

The Baggage mode of supply chain take cares of Tourist and travel  industry and global work force. There is restriction and change in duty free allowance as per  age , abroad stay and coming from which country. The portal will take care of documentation ,right duty and best way of importing  goods.

Air cargo is for more quantity  but will have lesser freight cost comparatively to Courier  ,thus less duty.

Sea Cargo is for bulk cargo and cheapest mode of import and export goods.

In another words , my portal takes cares of  importing small pin to big ship ,for that matter any thing.

Reason for growth of  Portal:

• Introduction  of self assessment for Customs duty from this budget,
• Growth in e-commerce and m-commerce website like ebay,amazon,alibaba,etc , internet penetration and Mobile phone. The Indian e-commerce market will grow  at the rate of 47% to over Rs 46,000 crore in the 2011 calendar year  as per report of  IAMAI.
• Growth in online payment gateway,
• Growing and aspiring middle class and entrepreneurs,
• Growing network of Courier and Postal to look after rural market,
• Globalisation and access to newer market, Regional trade block ,IPR infringement,fake import,etc.
• Introduction of GST,
• Growth in Gift industry  and consumer electronics goods
• Time gap between Indian launch and  foreign launch of high value consumer goods ,etc.

Current stage of portal:

•    Displaying information for compliance such as import-ability and non-tariff barrier,
• Displaying landing cost of product  and at what price goods can be imported as per EDI   data , 
• How to import through sea -cargo ,Air-cargo ,Post ,Courier and Baggage ,  
• Export incentives on goods ,
• Forms are generated for online submission documents to Customs,etc.

Future direction of portal:

• Single Window Approach- generating all documents for bringing goods form door to door delivery, such as invoice ,packing list Bill of entry and integrating with Bill of lading ,calculating duty liability ,filing import documents to Customs and enabling duty payment to authorised  Banks (payment made alongwith payment to e-tailer).This is end to end supply chain solutions. All data will be as per World Customs Organisation(WCO) data model and UN standards.
•     Post import and export incentives - We will inform whether any incentive  such as Refund of duty ,or, duty free import ,or ,drawback refund ,or, CENVAT credit  ,or any other incentive is available   to goods  .
• Designing   global supply chain in  relation to import and export goods  with respect to time to market ,nature of goods like parts,finished goods,perishable goods,used goods ,bulk goods  , preferential duty as per country of origin ,mode of  import such as sea  cargo ,Air cargo ,post ,baggage and courier.
• Designing   global supply chain in  relation to import and export goods  with respect to time to market ,nature of goods like parts,finished goods,perishable goods,used goods ,bulk goods  , preferential duty as per country of origin ,mode of  import such as sea  cargo ,Air cargo ,post ,baggage and courier.
• Providing tracking  and tracing of goods in global supply chain
• Moving to social media platform ,where people can share ,network and do business.
• Developing Mobile platform on ipad, iphone ,blackberry ,window7,etc.
• Industry specific API for Electronics industry, Fashion  industry,   Apparel industry, Shoe industry, Project imports, Toys industry,Sports industry ,Gems and jewelery industry, ,  Gift industry,etc.
• Mode of import specific API  for   Courier industry ,Postal   and Baggage                                                    

Market Size :

• Quantum of transaction cost is about 7-10 per cent of total value of Indian exports. This amounts to a significant, about $ 15 billion.( Source: The Hindu,http://www.thehindu.com/business/Economy/article1167984.ece)
• Trade transaction costs are frequently estimated to be in the range of 7-10 % of world trade value (basis unclear); customs compliance costs would be somewhat less. 
•  Benefits of trade facilitation typically seen as 1-5 % of the value of total world trade (1994 Coumbus Ministerial Declaration on Trade Efficiency cited the figure of 2.5%).  (Source:http://www.unece.org/forums/forum02/presentations/session_ii/akleitz.pdf

                      

How  revenue will come

•   Charging fee as digital consultant for advice rendered for import and export related matter.
• Fee for documentation and  clearance of cargo.
• Integrating  specific API to other e-commerce websites and charging per transactions if goods are sold and annual licence fee ,or,combination of both.
• Advertisement ,
• Fee for claiming import and export incentives from Govt.

Team  back ground:

                                 I am graduate from IIT Delhi ,87 Batch ,and  did Post Graduate Executive Diploma in Supply Chain Management from Loyala Institute of Business Adminstration,Chennai. Worked five years in BHEL ,then Customs Department( 1992-2007).

My popular website and blogs are:

     http://www.personalimport.blogspot.com

      http://www.globalsupplychainguru.com                                                    

• http://www.servicetaxes.blogspot.com/
• http://www.dutyrefund.blogspot.com
• http://www.customsvaluation.blogspot.com
• http://winksite.com/ravindra/servicetax
• http://winksite.com/ravindra/personalimp
• http://winksite.com/ravindra/dutyrefund

Need your help and assistance in finding right type of investor and proper business plan.

Pl write to me ,how  can we  take this to further.

Thanks and regards

Ravindra Kumar

Global Tax Guru

9958257070

                           

Ask me questions on Economic Times Of India , i am appearing as Expert on Customs matter in Taxation section of Q/A.

Ravindra Kumar
Customs

Ravindra Kumar is a graduate from IIT-D with a PG Diploma in Supply Chain and Logistics from LIBA Chennai. He has worked in BHEL for 5 years and spent more than 15 yrs in the Customs Department. Currently he runs a blog and e-taxation portal along with his practice as an Indirect Tax Consultant in the area of Customs, Excise and Service Tax.

As our expert here Ravindra will take queries related to Indirect Taxes (Customs and Excise) specially as they pertain to individuals and corporates when they import/export goods using Post office, Couriers or via Air and Sea ports for personal or commercial use.

Duty on ipad4, tablet pc, and laptop is now 16.854%

Duty on ipad2,ipad4, tablet pc, and laptop is now  16.854%.

Customs duty on ipad is 14.71%

No change in Customs duty for ipad. It is still 14.71%. This is also same for laptop ,netbook, notebook ,tablet PC, and  personal computer (PC).

Customs duty on Flash memory is 9.52%

Now  import duty on flash memory  as media are : Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 3%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on  flash memory  is 9.52%.

Customs duty on Flash memory is 9.52%

Now  import duty on flash memory  as media are : Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 3%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on  flash memory  is 9.52%.

Customs duty on Combo drive is now 9.36%

Now  import duty on Combo drive are  Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on  Combo drive   is 9.36%.

Customs duty increased on dvd writer to 9.36%

Now  import duty on DVD  writer , Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on DVD  writer  is 9.36%.

Customs duty increased on hard disc drive to 9.36%

Now  import duty on  Hard  Disc Drive  are  : Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on Hard disc drive  is 9.36%.

Customs duty increased on CD ROM drive to 9.36%

Now  import duty on  CD drive , Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on CD drive  is 9.36%.

Customs duty increased on dvd drive to 9.36%

 Now  import duty on DVD drive , Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on DVD  is 9.36%.

Customs duty decreased on personal use goods imported through Post

 Now import duty on  personal use goods  have been reduced to 14.71%. The CTH is  9804. But goods should not be restricted under import policy.

Increase in Customs duty of Wireless data modem card and duty varies as per CENVAT availment

There are two  category  of duty on  wireless modem , one  for who claimed CENVAT credit and another who do not claim. If somebody is availing CENVAT credit on Wireless modem , then duty is  9.52 % of value, otherwise, it is 5.1 % of assessable value. The new changes in duty is on account of central excise duty ,which is  5 %  (if  CENVAT   claimed) and is 1 % (If  CENVAT not claimed as input).Relevant portion of
notification  is re -produced for easy  reference:
 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
                                       New Delhi, the 1
st
March, 2011
NOTIFICATION
No.    1/2011-Central Excise
G.S.R.   (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby  exempts the  excisable  goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in the corresponding entry in column (2) of the said Table, from so much of
the duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 1% ad valorem:

Provided that nothing contained in this notification shall apply to the goods in respect
of which credit of duty on inputs or tax on input services has been taken under the provisions
of the CENVAT Credit Rules, 2004.........................................................


" SN 101 , 8517    ,  Wireless  data modem cards with PCMCIA or 
USB or PCI express ports"




Other notifications  , which is without exclusion of CENVAT  conditions is reproduced here:


Notification                                                                               New Delhi, the 1
st
March, 2011
No. 2/2011-Central Excise
G.S.R.      (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby exempts the excisable goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in corresponding entry in column (2) of the said Table, from so much of the
duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 5% ad valorem:

."  SN 61   ,     8517    ,Wireless data modem cards with PCMCIA or 

USB or PCI express ports "

 Excise duty  is base on MRP price  in India ,after appropriate abatement.

Customs duty on Mobile phone is increased after budget 2011

There are two  category  of duty on mobile phones ,iphone ,smartphone , one  for who claimed CENVAT credit and another who do not claim. If somebody is availing CENVAT credit on Mobile Phones , then duty is  6.37 % of value, otherwise, it is 2.12 % of assessable value. The new changes in duty is on account of central excise duty ,which is  5 %  (if  CENVAT   claimed) and is 1 % (If  CENVAT not claimed as input).Relevant portion of
notification  is re -produced for easy  reference:
 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
                                       New Delhi, the 1
st
March, 2011
NOTIFICATION
No.    1/2011-Central Excise 
G.S.R.   (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby  exempts the  excisable  goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in the corresponding entry in column (2) of the said Table, from so much of
the duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 1% ad valorem:

Provided that nothing contained in this notification shall apply to the goods in respect
of which credit of duty on inputs or tax on input services has been taken under the provisions
of the CENVAT Credit Rules, 2004.


" SN 100 ,  8517 or 8525 60   , Mobile handsets including Cellular Phones and 
Radio trunking terminals.



Other notifications  , which is without exclusion of CENVAT  conditions is reproduced here:


Notification                                                                               New Delhi, the 1
st
March, 2011
No. 2/2011-Central Excise
G.S.R.      (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby exempts the excisable goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in corresponding entry in column (2) of the said Table, from so much of the
duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 5% ad valorem:




"  SN 60    ,    8517 or 8525 60 , Mobile handsets including Cellular Phones and Radio trunking terminals ".






 Excise duty  is base on MRP price  in India ,after appropriate abatement.

Duty reduced on LED TV

 Today's budget has reduced duty on LED  TV. Waiting for notification for exact  duty.

Income tax exemption for citizen in this Budget

 Direct Tax Code (DTC) will be effective from 1.4.2012.
Exemption limit  raised to Rs 1,80,000/= for general Tax payer.
Senior citizen age  reduced  form 65 Years to 60 Years and exemption limit is Rs 2,50 ,000/=
One more category of senior Citizen ,who are above 80 years, exemption limit is Rs 5,00,000/-.

No need to file IT return by Salaried people

 If  employer  has deducted TDS  from Salary ,then, Salaried employee need not to file  IT return.

Relief from litigation for small revenue locked

As per Govt litigation policy , Govt Department will not  appeal in higher  judicial forum ,if revenue involved is less than  prescribed by Govt. It will concentrate more on higher revenue realisation ,where  revenue involved is high.

Self Assessment of import duty is introduced for importer and exporter

Self assessment by importer  and exporter   is a  great step. It will reduce time of transaction and cost  of compliance with Customs formalities. Thus will lead more competitive  price of  Indian Goods  and improve
efficiency of Global Supply Chain. There will be random checks by Customs to prevent mis use of  self assessment practice. This scheme is operative in various form for past many years. But  ,now it is has been widen.   Detail procedure will be known only after  Notification or circular is issued by CBEC.

As per Task force of Ministry of Commerce, It is said that  reducing of transaction cost will yield saving of
  Rs 2100  Crore.

CBEC has EDI systems at  91 locations. Electronic filing and    CBEC web portal are great tool for reducing transaction cost.  Even  State Govts  have started accepting  Electronic Tax Returns.

Goods and Service tax ( GST) in this budget 2011-2012

Honourable FM has proposed that  he will introduce Constitutional   amendment for GST. Establishment of  national IT   network  will be back bone of effective GST regime. In June 2011 ,Pilot portal on GST, with collaboration  with 11 States ,will be launched. Lower rate of Central Excise duty is increased form  4 % to 5 %. Around 130 items of consumer nature , Central  Excise duty is reduced to 1%  ,in order to align with GST.

Lower limit of central excise duty is increased form 4 % to 5 % to align GST.

 Many States have increased  rate of VAT from  4 % to 5 %.  Therefore , FM has also increased  lower rate of Central Excise Duty from 4 % to 5 %.  Peak Basic rate of central Excise is 10 % only.
Net gain by Indirect tax  in this budget  is Rs 7,300 crore.

Less Excise duty on consumer goods to align with proposed GST

 Duty on Sanitary napkin  is reduced from 10 % to 1%.
 Around 130 items , mostly consumer goods, duty is reduced to 1 %. No cenvat credit is allowed on these items.

Reduce customs duty on work of art , exhibitions and Film Rolls

Exemption form duty on  Work of    Art for exhibitions ,
colour unexposed jubo reel, 10,000 and 4000 feets are exempted  form excise duty.

Reduce customs and excise duty for promoting green economy

Less Excise  duty on car based on  hybrid Fuel & hydrogen  cell.
LED lights  ,customs duty is 5 %.
 Customs Duty on Solar lantern is reduced form 10 % to 5 % .
Excise duty exemption for Mega Power  Project.

No change is peak rate of Customs duty , it is still 10 % for most of items.

Honourable FM missed two paras , read them before Indirect tax portion of the Budget.  Three rate of basic customs duty  are kept for most of items.
Thrust was on simplification and rationalization of Taxes.
Curb on Money laundry and  Corrupt practice.
 Reduction in duty for promoting green economy.
2.5 % customs duty on  specified agriculture machinery.
Reduce  Customs duty on silk from 30 % to 5 %.
Customs duty on Technical fabric from 7.5% to 5%.
Reduction of duty  on parts for mobile hand set.
Reduce  Customs duty on  coke and Gypsum   to 2.5 %.

Budget high light on Gifts

There is no change in Gift limit for importing goods for personal use.

No service tax on canned software ,if seller is not charging more than M.R.P from end customer as per Notification No. 53/2010 - Service Tax

No service tax on canned software ,if seller is not charging more than M.R.P. It is to avoid double taxation as software as service and as product, one time it is service tax  and another time is central excise .

Notification is reproduced for easy reference.

 Notification No. 53/2010 - Service Tax

                                                                                                             New Delhi, the 21 st December,2010 

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SECTION (i)]
Government of India
Ministry of Finance
Department of Revenue
                                                                                                    
 G.S.R.  (E).- In exercise of the powers conferred  by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the
public interest so to do, hereby exempts  the taxable service referred to in item (v) of sub-clause
(zzzze) of clause (105) of section 65 of the said Finance Act (hereinafter referred to as ‘such service’),
for packaged or canned software (hereinafter referred to as ‘said goods’) from the whole of service
tax, subject to the condition that-
(i) the value of the said goods domestically produced or imported, for the purposes of levy of the duty
of Central Excise or the additional duty of customs leviable under sub-section (1) of section 3 of the
Customs Tariff Act, 1975 (51 of 1975), if imported, as the case may be, has been determined under
section 4A of the Central Excise Act 1944 (1 of 1944) (hereinafter referred to as ‘such value’); and
(ii) (a) the appropriate duties of excise on such value have been paid by the manufacturer, duplicator
or the person holding the copyright to such software, as the case may be, in respect of software
manufactured in India; or
(b) the appropriate duties of customs including the additional duty of customs on such value, have
been paid by the importer in respect of software which has been imported into India;
(iii) a declaration made by the service provider on the invoice relating to such service that no amount
in excess of the retail sale price declared on the said goods has been recovered from the customer.
Explanations.- For the purpose of this notification, the expression,-
(i) “appropriate duties of excise” shall mean the duties of excise leviable under section 3 of the Central
Excise Act, 1944 (1 of 1944) and a notification, for the time being in force, issued in accordance with
the provision of sub-section (1) of section 5A of the said Central Excise Act; and
(ii) “appropriate duties of customs” shall mean the duties of customs leviable under section 12 of the
Customs Act, 1962 (52 of 1962) and any of the provisions of the Customs Tariff Act, 1975 (51 of
1975) and a notification, for the time being in force, issued in accordance with the provision of subsection (1) of section 25 of the said Customs Act.
                                                                                               [F. No. 354/189/2010-TRU]
                                                                                          (VIKAS)
Under Secretary to the Government of India




Ravindra Kumar

Customs duty on HP iPAQ mobile messenger is 1.03 %.

Customs classification of HP iPAQ mobile messenger is under heading CTH 85171290  and rate of duty  is @ 1.03%, if  it looks more like smartphone. However,  If it is considered handheld device than CTH 8471 and duty @ 14.71%.  Correct classification will depend upon what is  principal function of a particular items.
Regards
Ravindra Kumar
Global Tax Guru
www.globaltaxguru.in

Customs duty on VC6096 WWAN In-Vehicle/Fixed Mount Mobile Computer is 1.03%

 Tariff classification of Motorala  under CTH  85171290 and  rate of duty is 1.03 %.
The VC609VC6096 WWAN In-Vehicle/Fixed Mount Mobile Computer6 all-in-one in-cab solution is designed to help transportation and logistics providers achieve cost-effective compliance, maximize driver productivity, improve safety and vehicle utilization, reduce costs and improve customer service.

Customs duty on HTC EVO 4G,Google Nexus One,Samsung Vibrant, HTC Desire,HTC Incredible,Motorola Droid X,Samsung Epic 4G,

Rate of customs duty on a rear view mirror hands-free Bluetooth car kit

The tariff classification of a rear view mirror hands-free Bluetooth car kit  is CTH 85176970. Rate of duty is 15.03%.

Second hand personal goods should not require import licence

As per Foreign Trade Policy, second hand capital goods are allowed to be imported without any licence. But  second goods for personal use seems to be restricted. This view is not appears to be correct.

"......Provided that where it is established to the satisfaction of the Adjudicating Authority that any goods or materials which are liable to confiscation under this rule, had been imported for personal use, and not for any trade or industry, such goods or materials shall not be ordered to be confiscated........"   Rule 17. Confiscation and redemption..FOREIGN TRADE (REGULATION) RULES, 1993 Ministry of Commerce Notification No. GSR 791 (E), dated 30-12-1993.




It is interpreted that  if any goods is imported for personal use than it cannot be confiscated  for violation  of above Rule. There is no value limit  for personal import without any licence.However, Department of Revenue/ Customs department   ,at many place, does not allow goods imported for personal use. Reason cited is based on 3(1)(i) of   Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993. This is not true. 


Once Rule itself says that personal use goods are not to be confiscated ,then ,where is question of restricting import of consumer electronics goods ,valued more than C.I.F ,Rs 2000/= through  Order. Hence, goods for personal use should be allowed without any adjudication , whether it is old or new.  Revenue authority and DGFT to rectify and make  importing  goods for personal use as smooth affair.

Exports transaction cost to be cut by 40 percent

Scindia said transaction of exports cost nearly $14 billion annually. This is nearly seven percent of India's total exports value. 

Total merchandise exports from India was $178.66 billion in 2009-10. The government targets to increase it to $200 billion during the current fiscal. (Source:http://economictimes.indiatimes.com/news/economy/foreign-trade/Exports-transaction-cost-to-be-cut-by-40-percent/articleshow/6426877.cms)

Import of wine as gift or sample into India through courier

                    


 Import of wine is free ,that is without any import licence.

 But , you have to pay  customs duty @ 150 % EXCEPT for sacramental wine(Which is  @ 36.136 %).

 As far IEC is concerned , if  importer is commercial organisation, then requires an IEC.

 Sample of wine or gift,supplied free of cost through Courier and valued less than Rs 10,000/=, is  with out any  Customs duty. For more information ,you can visit my site www.globaltaxguru.in.
If you are interested in regular business ,then ,i can help you.
Thanks and warm regards
Ravindra Kumar
www.globaltaxguru.in

Fake goods are not allowed to be imported and exported out of India.It is illegal

 Even some body buy on line  fake goods and try to import fake ,or look alike ,or counterfeit goods into India. It is illegal. Customs may  initiate prosecution under Customs Act 1962.Avoid such import and export.

What is intellectual property ?


What  are goods infringing intellectual property rights ?


Who is right holder ?


For easy understanding  and reference definitions are reproduced(  Source:Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007, Notification No. 47/2007-Cus. (N.T.), dated 8-5-2007 )

" 2.          Definitions. -   

 (a) “ goods infringing intellectual property rights"  means any goods which are made, reproduced, put into circulation or otherwise used in breach of the intellectual property laws  in India or outside India and without the consent of the right holder or a person duly authorized to do so by the right holder;

(b) "intellectual property"  means a copyright as defined in the Copyright Act, 1957, trade mark as defined in the Trade Marks Act,1999, patent  as defined in the Patents Act, 1970, design as defined in the Designs Act, 2000 and geographical indications as defined in the  Geographical Indications of Goods (Registration and Protection) Act, 1999;

(c) “ Intellectual  property  law”  means the Copyright Act, 1957, the Trade Marks Act,1999, the Patents Act, 1970, the Designs Act, 2000 or  the  Geographical Indications of Goods (Registration and Protection) Act, 1999 ;

(d) " right holder"  means a natural person or a legal entity, which according to the laws in force is to be regarded as the owner of protected intellectual property right, its successors in title, or its duly authorized exclusive licensee as well as an individual, a corporation or an association authorized by any of the aforesaid persons to protect its rights."

Regards

Global Tax Guru

www.globaltaxguru.in