Calculate Customs duty on Mobile phone ,iphone and ,smartphone

Calculate customs duty on mobile phone imported in to India. Customs Duty levied on mobile phone is 1% for CVD and another 1%  for NCCD. To calculate duty amount ,enter  cost in Indian Rupees after abatement of 35 %  in MRP price .

Mobile Phone
Cost:
Enter Quantity:

Ravindra Kumar

Global Tax Guru

iPhone 5 attracts import duty @ 2% on MRP Price

iPhone 5 ,if  imported into India through Courier ,then, it will attract import  duty  @ 2% on MRP Price.
Ravindra Kumar
Global Tax Guru

import of GPS Tracker into India

Dear Dinesh

On merit, there is no reason for CUstoms to withhold teh shipment, especially with the NOC from WPC. Despite, this customs is not allowing import of these devices without license from DGFT. That is a time consuming affair and takes a few moths. For the current shipment, you should try and visit the New CUstoms House and seek an appointment with the Assistance Commissioner Customs, and :

1) show him the WPC NOC

2) Plead that GPS Receiver is freely importable undger OGL (Open General List) as per item cide 8526.90

3) That GPS enbaled I-phones, and other mobile phoines do not need any license from DGFT, even though they are also combo of GPS/GPRS.

4) That it is a small value shipment and a first time import and if he decided that DGFT license is a must, then you undertake that next import will only be against such license, and for this shipment he may pardon, or levy minimal fine & penalty. For shipment of USD 820, fine and penalty can be upto the value of the shipment invoice, unless the officer wants to take a lenient view.

All the best

Luv Jain

Allowing FDI in Multi-Brand Retail Trading. (Press Note No.5 (2012 Series)

Government of India

Ministry of Commerce & Industry

Department of Industrial Policy & Promotion

(FC-I Section)

Press Note No.5 (2012 Series)

Subject: Review of the policy on Foreign Direct Investment- allowing FDI in Multi-Brand Retail

Trading.

1.0 Present Position:

Foreign Direct Investment (FDI) is prohibited in retail trading, except in single-brand product

retail trading, in which FDI, up to 100%, is permitted, under the Government route, subject to

specified conditions.

2.0 Revised Position:

The Government of India has reviewed the extant policy on FDI and decided to permit FDI,

up to 51%, under the Government route, in Multi-Brand Retail Trading, subject to specified

conditions.

3.0 Accordingly, the following amendment is made in 'Circular 1of 2012- Consolidated FDI

Policy', issued on 10.04.2012, by the Department ofIndustrial Policy & Promotion:

3.1 Paragraph 6.1 - 'Prohibited Sectors', is substituted with the following:

"6.1 PROHIBITED SECTORS:

FDI is prohibited in:

(a) Lottery Business, including Government /private lottery, online lotteries, etc.

(b) Gambling and Betting, including casinos etc.

(c) Chit funds

(d) Nidhi company

(e) Trading in Transferable Development Rights (TDRs)

(f) Real Estate Business or Construction of Farm Houses

(g) Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco

substitutes

(h) Activities / sectors not open to private sector investment e.g. Atomic Energy and Railway

Transport (other than Mass Rapid Transport Systems).

Foreign technology collaboration in any form, including licensing for franchise,

trademark, brand name, management contract, is also prohibited for Lottery Business and

Gambling and Betting activities."

Page 1 of4

3.2 A new paragraph as paragraph 6.2.16.5 is inserted below paragraph 6.2.16.4 as below:

6.2.16.5 Multi Brand Retail Trading I 51% I Government

(l) FDI in multi brand retail trading, in all products, will be permitted,

subject to the following conditions:

(i) Fresh agricultural produce, including fruits, vegetables, flowers,

grains, pulses, fresh poultry, fishery and meat products, may be

unbranded.

G) Minimum amount to be brought in, as FDI, by the foreign investor,

would be US $ 100 million.

(iii) At least 50% of total FDI brought in shall be invested in 'backend

infrastructure' within three years of the first tranche of FDI, where

'back-end infrastructure' will include capital expenditure on all

activities, excluding that on front-end units; for instance, back-end

infrastructure will include investment made towards processing,

manufacturing, distribution, design improvement, quality control,

packaging, logistics, storage, ware-house, agriculture market produce

infrastructure etc. Expenditure on land cost and rentals, if any, will

not be counted for purposes of back end infrastructure.

(iv) At least 30% of the value of procurement of manufactured! processed

products purchased shall be sourced from Indian 'small industries'

which have a total investment in plant & machinery not exceeding US

$ .1.00 million. This valuation refers to the value at the time of

installation, without providing for depreciation. Further, if at any point

in time, this valuation is exceeded, the industry shall not qualify as a

'small industry' for this purpose. This procurement requirement would

have to be met, in the first instance, as an average of five years' total

value of the manufactured! processed products purchased, beginning

1st April of the year during which the first tranche of FDI is received.

Thereafter, it would have to be met on an annual basis.

(v) Self-certification by the company, to ensure compliance of the

conditions at serial nos. (ii), (iii) and (iv) above, which could be crosschecked, as and when required. Accordingly, the investors shall

maintain accounts, duly certified by statutory auditors.

(vi) Retail sales outlets may be set up only in cities with a population of

more than 10 lakh as per 2011 Census and may also cover an area of

10 kms around the municipal/urban agglomeration limits of such

cities; retail locations will be restricted to conforming areas as per the

Master/Zonal Plans of the concerned cities and provision will be made

for requisite facilities such as transport connectivity and parking; In

States/ Union Territories not having cities with population of more

than 10 lakh as per 2011 Census, retail sales outlets may be set up in

Page 2 of4

(vii) Government will have the first right to procurement of agricultural

products.

the cities of their choice, preferably the largest city and may also cover

an area of 10 kms around the municipal/urban agglomeration limits of

such cities. The locations of such outlets will be restricted to

conforming areas, as per the Master/Zonal Plans of the concerned

cities and provision will be made for requisite facilities such as

transport connectivity and parking.

(viii) The above policy is an enabling policy only and the State

GovernmentslUnion Territories would be free to take their own

decisions in regard to implementation of the policy. Therefore, retail

sales outlets may be set up in those StateslUnion Territories which

have agreed, or agree in future, to allow FDI in MBRT under this

policy. The list of StateslUnion Territories which have conveyed their

agreement is annexed. Such agreement, in future, to permit

establishment of retail outlets under this policy, would be conveyed to

the Government of India through the Department of Industrial Policy

& Promotion and additions would be made to the annexed list

accordingly. The establishment of the retail sales outlets will be in

compliance of applicable StatelUnion Territory laws/ regulations, such

as the Shops and Establishments Act etc.

(ix) Retail trading, in any form, by means of e-commerce, would not be

permissible, for companies with FDI, engaged in the activity of multibrand retail trading.

(x) Applications would be processed in the Department of Industrial Policy

& Promotion, to determine whether the proposed investment satisfies

the notified guidelines, before being considered by the FIPB for

Government approval.

4.0 The above decision will take immediate effect.

Joint Secretary to Govt of India

D/o IPP File No.: 5/12//201O-FC-I dated: 20th September, 2012

Copy forwarded to:

1. Press Information Officer, Press Information Bureau- for giving wide publicity to the above

Press Note.

2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press

Note on DIPP's website.

Page 3 of4

ANNEXURE

LIST OF STATES/ UNION TERRITORIES AS MENTIONED IN

PARAGRAPH 6.2.16.5(l)(viii)

1. Andhra Pradesh

2. Assam

3. Delhi

4. Haryana

5. Jammu & Kashmir

6. Maharashtra

7. Manipur

8. Rajasthan

9. Uttarakhand

10. Daman & Diu and Dadra and Nagar Haveli (Union Territories)

Page 4 of4

(Source: :http://dipp.nic.in/English/acts_rules/Press_Notes/pn5_2012.pdf)

FDI is prohibited in

FDI is prohibited in:

(a) Lottery Business, including Government /private lottery, online lotteries, etc.

(b) Gambling and Betting, including casinos etc.

(c) Chit funds

(d) Nidhi company

(e) Trading in Transferable Development Rights (TDRs)

(f) Real Estate Business or Construction of Farm Houses

(g) Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco

substitutes

(h) Activities / sectors not open to private sector investment e.g. Atomic Energy and Railway

Transport (other than Mass Rapid Transport Systems).

Foreign technology collaboration in any form, including licensing for franchise,

trademark, brand name, management contract, is also prohibited for Lottery Business and

Gambling and Betting activities."

Foreign Direct Investment in the Civil Aviation sector

Government of India
Ministry of Commerce & Industry
Department of Industrial Policy & Promotion
Press Note No.6 (2012 Series)
Subject: Review of the policy on Foreign Direct Investment in the Civil Aviation sector
1.0 Present Position:
1.1 Paragraph 6.2.9.3 of 'Circular 1 of 20 12-Consolidated FDI Policy', effective from April 10,
2012, relating to air transport services, presently reads as below:
6.2.9.3 Air Transport Services
(a) Air Transport Services would include Domestic Scheduled Passenger Airlines;
Non-Scheduled Air Transport Services, helicopter and seaplane services.
(b) No foreign airlines would be allowed to participate directly or indirectly in the
equity of an Air Transport Undertaking engaged in operating Scheduled and
Non-Scheduled Air Transport Services except Cargo airlines.
(c) Foreign airlines are allowed to participate in the equity of companies operating
Cargo airlines, helicopter and seaplane services.
(l) Scheduled Air Transport Service/ 49%FDI Automatic
Domestic Scheduled Passenger (100% for NRIs)
Airline
(2) Non-Scheduled Air Transport 74% FDI Automatic up to 49%
Service (100% for NRls)
Government route
beyond 49% and up to
74%
(3)Helicopter services/seaplane 100% Automatic
services requmng DGCA
approval
2.0 Revised Position:
2.1 The Government of India has reviewed the position in this regard and decided to permit
foreign airlines also to invest, in the capital of Indian companies, operating scheduled and nonscheduled air transport services, up to the limit of 49% of their paid-up capital.
2.2 Such investment would be subject to the following conditions:
(i) It would be made under the Government approval route.
(ii) The 49% limit will subsume FDI and FII investment.
(iii)The investments so made would need to comply with the relevant regulations of SEBI, such
as the Issue of Capital and Disclosure Requirements (ICDR) Regulations/ Substantial
Acquisition of Shares and Takeovers (SAST) Regulations, as well as other applicable rules
and regulations.(iv)A Scheduled Operator's Permit can be granted only to a company:
a) that is registered and has its principal place of business within India
b) the Chairman and at least two-thirds of the Directors of which are citizens of India
and
c) the substantial ownership and effective control of which is vested in Indian nationals
(v) All foreign nationals likely to be associated with Indian scheduled and non-scheduled air
transport services, as a result of such investment shall be cleared from security view point
before deployment; and
(vi)All technical equipment that might be imported into India as a result of such investment shall
require clearance from the relevant authority in the Ministry of Civil Aviation.
2.3 The above revised policy is not applicable to Air India.
3.0 Amendment to paragraph 6.2.9.3:
3.1 Accordingly, paragraph 6.2.9.3 of 'Circular 1 of 2012-Consolidated FDI Policy', effective
from April 10,2012, is amended, as below:
6.2.9.3 Air Transport Services
(1) Scheduled Air Transport Service/ 49%FDI Automatic
Domestic Scheduled Passenger (100% for NRIs)
Airline
(2) Non-Scheduled Air Transport 74% FDI Automatic up to 49%
Service (l00% for NRIs)
Government route
beyond 49% and up to
74%
(3)Helicopter services/seaplane 100% Automatic
services requmng DGCA
approval
6.2.9.3.1 Other conditions:
(a) Air Transport Services would include Domestic Scheduled Passenger Airlines;
Non-Scheduled Air Transport Services, helicopter and seaplane services.
(b) Foreign airlines are allowed to participate in the equity of companies operating
Cargo airlines, helicopter and seaplane services, as per the limits and entry
routes mentioned above.
(c) Foreign airlines are also, henceforth, allowed to invest, in the capital of Indian
companies, operating scheduled and non-scheduled air transport services, up to
the limit of 49% of their paid-up capital. Such investment would be subject to
the following conditions:(i) It would be made under the Government approval route.
(ii) The 49% limit will subsume FDI and FII investment.
(iii) The investments so made would need to comply with the relevant
regulations of SEBI, such as the Issue of Capital and Disclosure
Requirements (ICDR) Regulations/ Substantial Acquisition of Shares
and Takeovers (SAST) Regulations, as well as other applicable rules
and regulations.
(iv) A Scheduled Operator's Permit can be granted only to a company:
a) that is registered and has its principal place of business within
India;
b) the Chairman and at least two-thirds of the Directors of which
are citizens of India; and
c) the substantial ownership and effective control of which is
vested in Indian nationals.
(v) All foreign nationals likely to be associated with Indian scheduled and
non-scheduled air transport services, as a result of such investment
shall be cleared from security view point before deployment; and
(vi) All technical equipment that might be imported into India as a result of
such investment shall require clearance from the relevant authority in
the Ministry of Civil Aviation.
Note: The FDI limits/entry routes, mentioned at paragraph 6.2.9.3 (1) and
6.2.9.3 (2) above, are applicable in the situation where there is no
investment by foreign airlines.
(d) The policy mentioned at (c) above is not applicable to M/s Air India Limited.
4.0 The above decision will take immediate effect.
Joint Secretary to the
D/o IPP File No.: No. S/12/2008-FC.! dated: 20thSeptember, 2012
Copy forwarded to:
1. Press Information Officer, Press Information Bureau- for giving necessary publicity.
2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press
Note on DIPP's website.
( Source: http://dipp.nic.in/English/acts_rules/Press_Notes/pn6_2012.pdf)Foreign direct investment in Civil Aviation Sector

Policy on Foreign Investment (FI) in companies operating in the Broadcasting Sector

Government of India
Ministry of Commerce & Industry
Department of Industrial Policy & Promotion
Press Note No.7 (2012 Series)
Subject: Review of the policy on Foreign Investment (FI) in companies operating III the
Broadcasting Sector
1.0 Present Position:
1.1 As per extant policy, the foreign investment (FI) limits, in companies operating in the
Broadcasting Sector, are set out in paragraph 6.2.7 of 'Circular 1 of 2012 - Consolidated FDI
Policy', issued by the Department of Industrial Policy and Promotion (DIPP), on 10.04.2012.
2.0 Revised Position:
2.1 The Government of India has reviewed the position in this regard and decided to amend the
foreign investment limits, in companies engaged in providing broadcasting carriage services, in the
manner indicated below, subject to such terms and conditions, as may be specified by the Ministry of
Information and Broadcasting from time to time:
(1) Teleports (setting up up-linking HUBsffeleports); Direct to Home (DTH); Cable
Networks (MSOs operating at National or State or District level and undertaking
upgradation of networks towards digitalization and addressability):
Increase in the foreign investment (FI) limit from 49% to 74%, subject to:
(a) Foreign investment up to 49% being permitted under the automatic route; and
(b) Foreign investment beyond 49% and up to 74% being permitted under the Government
route.
(2) Mobile TV:
Permitting foreign investment (FI) up to 74%, subject to:
(a) Foreign investment up to 49% being permitted under the automatic route; and
(b) Foreign investment beyond 49% and up to 74% being permitted under the Government
route.
2.2 The foreign investment (FI) limit, in companies engaged in the aforestated activities of the
I&B sector, shall include, in addition to FDI, investment by Foreign Institutional Investors (FIls),
Non-Resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository
Receipts (ADRs), Global Depository Receipts (GDRs) and convertible preference shares held by
foreign entities.
2.3 The terms and conditions relating to security and other conditions, will separately be
incorporated in the sectoral guidelines of each broadcasting carriage service, as specified in
paragraph 3.0 below.3.0 Accordingly, paragraph 6.2.7 under 'Circular 1 of 2012-Consolidated FDI Policy' IS
substituted with the following:
SI. No. Sector/Activity 0/0 of FDI Entry Route
Cap/Equity
6.2.7 Broadcasting
6.2.7.1 Broadcasting Carriage Services
6.2.7.1.1 (1) Teleports (setting up of up- 74% Automatic up to 49%
linking HUBs/Teleports);
(2) Direct to Home (DTH); Government route beyond 49%
(3) Cable Networks (Multi System and up to 74%
operators (MSOs) operating at
National or State or District
level and undertaking
upgradation of networks
towards digitalization and
addressability);
(4) Mobile TV;
(5) Headend-in-the Sky
Broadcasting Service (HITS)
6.2.7.1.2 Cable Networks (Other MSOs not 49% Automatic
undertaking upgradation of networks
towards digitalization and
addressability and Local Cable
Operators (LCOs»
6.2.7.2 Broadcasting Content Services
6.2.7.2.1 Terrestrial Broadcasting FM (FM 26% Government
Radio), subject to such terms and
conditions, as specified from time to
time, by Ministry of Information &
Broadcasting, for grant of permission
for setting up of FM Radio stations
6.2.7.2.2 Up-linking of 'News & Current 26% Government
Affairs' TV Channels
6.2.7.2.3 Up-linking of Non-'News & 100% Government
Current Affairs' TV Channels/
Down-linking of TV Channels
6.2.7.3
FDI for Up-linking/Down-linking TV Channels will be subject to compliance with the
relevant Up-linking/Down-linking Policy notified by the Ministry of Information &
Broadcasting from time to time.
6.2.7.4
Foreign investment (FI) in companies engaged in all the aforestated services will be
subject to relevant regulations and such terms and conditions, as may be specified
from time to time, by the Ministry of Information and Broadcasting.
6.2.7.5 The foreign investment (FI) limit in companies engaged in the aforestated activities
shall include, in addition to FDI, investment by Foreign Institutional Investors (FIls),
Non-Resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs),American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and
convertible preference shares held by foreign entities.
6.2.7.6
Foreign investment in the aforestated broadcasting carriage services will be subject to
the following security conditions/terms:
Mandatory Requirement for Key Executives of the Company
(i) The majority of Directors on the Board of the Company shall be Indian
Citizens.
(ii) The Chief Executive Officer (CEO), Chief Officer In-charge of technical
network operations and Chief Security Officer should be resident Indian
Citizens.
Security Clearance of Personnel
(iii) The Company, all Directors on the Board of Directors and such key executives
like Managing Director / Chief Executive Officer, Chief Financial Officer
(CFO), Chief Security Officer (CSO), Chief Technical Officer (CTO), Chief
Operating Officer (COO), shareholders who individually hold 10% or more
paid-up capital in the company and any other category, as may be specified by
the Ministry of Information and Broadcasting from time to time, shall require
to be security cleared.
In case of the appointment of Directors on the Board of the Company and such
key executives like Managing Director / Chief Executive Officer, Chief
Financial Officer (CFO), Chief Security Officer (CSO), Chief Technical
Officer (CTO), Chief Operating Officer (COO), etc., as may be specified by
the Ministry of Information and Broadcasting from time to time, prior
permission of the Ministry of Information and Broadcasting shall have to be
obtained.
It shall be obligatory on the part of the company to also take prior permission
from the Ministry of Information and Broadcasting before effecting any
change in the Board of Directors.
(iv) The Company shall be required to obtain security clearance of all foreign
personnel likely to be deployed for more that 60 days in a year by way of
appointment, contract, and consultancy or in any other capacity for installation,
maintenance, operation or any other services prior to their deployment. The
security clearance shall be required to be obtained every two years.
Permission vis-a-vis Security Clearance
(v) The permission shall be subject to permission holder/licensee remaining
security cleared throughout the currency of permission. In case the security
clearance is withdrawn the permission granted is liable to be terminated
forthwith.
(vi)
In the event of security clearance of any of the persons associated with the
permission holder/licensee or foreign personnel is denied or withdrawn for any
reasons whatsoever, the permission holder/licensee will ensure that theconcerned person resigns or his services terminated forthwith after receiving
such directives from the Government, failing which the permission/license
granted shall be revoked and the company shall be disqualified to hold any
such Permission/license in future for a period or five years.
Infrastructure/Network/Software related requirement
(vii) The officers/officials of the licensee companies dealing with the lawful
interception of Services will be resident India citizens.
(viii) Details of infrastructure/network diagram (technical details of the network)
could be provided, on a need basis only, to equipment suppliers/manufactures
and the affiliate of the licensee company. Clearance from the licensor would be
required if such information is to be provided to anybody else.
(ix) The Company shall not transfer the subscribers' databases to any person/place
outside India unless permitted by relevant Law.
(x) The Company must provide traceable identity of their subscribers.
Monitoring, Inspection and Submission of Information
(xi) The Company should ensure that necessary provision (hardware/software) is
available in their equipment for doing the Lawful interception and monitoring
from a centralized location as an when required by Government.
(xii) The company, at its own costs, shall, on demand by the government or its
authorized representative, provide the necessary equipment, services and
facilities at designated place( s) for continuous monitoring or the broadcasting
service by or under supervision of the Government or its authorized
representative.
(xiii) The Government of India, Ministry of Information & Broadcasting or its
authorized representative shall have the right to inspect the broadcasting
facilities. No prior permission/intimation shall be required to exercise the right
of Government or its authorized representative to carry out the inspection. The
company will, if required by the Government its authorized representative,
provide necessary facilities for continuous monitoring for any particular aspect
of the company's activities and operations. Continuous monitoring, however,
will be confined only to security related aspects, including screening of
objectionable content.
(xiv) The inspection will ordinarily be carried out by the government of India,
Ministry of Information & Broadcasting or its authorized representative after
reasonable notice, except in circumstances where giving such a notice will
defeat the very purpose of the inspection.
(xv) The company shall submit such information with respect to its services as may
by required by the Government or its authorized representative, in the format as
may be required, from time to time.
(xvi) The permission holder/licensee shall be liable to furnish the Government of
India or its authorized representative or TRAI or its authorized representative,
such reports, accounts, estimates, returns or such other relevant information and
at such periodic intervals or such times as may be required.
(xvii) The service providers should familiarize/train designated officials or the
Government or officials of TRAI or its authorized representative(s) in respect
of relevant operations/features of their systems.National Security Conditions
(xviii) It shall be open to the licensor to restrict the Licensee Company from operating
in any sensitive area from the National Security angle. The Government of
India, Ministry of Information and Broadcasting shall have the right to
temporally suspend the permission of the permission holder/Licensee in public
interest or for national security for such period or periods as it may direct. The
company shall immediately comply with any directives issued in this regard
failing which the permission issued shall be revoked and the company
disqualified to hold any such permission in further for a period or five years.
(xix) The company shall not import or utilize any equipment, which are identified as
unlawful and/or render network security vulnerable.
Other conditions
(xx) Licensor reserves the right to modify these conditions or incorporate new
conditions considered necessary in the interest of national security and public
interest or for proper provision of broadcasting services.
(xxi) Licensee will ensure that broadcasting service installation carried out by it
should not become a safety hazard and is not in contravention of any statute,
rule or regulation and public policy.
Joint Secretary to the
4.0 The above decision will take immediate effect.
(A .alii'XAtsro:J)
ent of India
D/o IPP File No.: No. 5/5/2012-FC.I dated: 20
t
September, 2012
Copy forwarded to:
1. Press Information Officer, Press Information Bureau- for giving necessary publicity.
2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press
Note on DIPP 's website.

Policy on foreign investment in Power Exchanges ,Press Note No.8 (2012 Series)

Government of India

Ministry of Commerce & Industry

Department of Industrial Policy & Promotion

Press Note No.8 (2012 Series)

Subject: Policy on foreign investment in Power Exchanges

1.0 Present Position:

1.1 As per extant policy, FDI, up to 100%, under the automatic route, is permitted in the power

sector (except atomic energy). This includes generation, transmission and distribution of electricity,

as well as power trading, subject to the provisions of the Electricity Act, 2003.

1.2 Extant policy, however, does not provide any specific dispensation for foreign investment in

power exchanges.

2.0 Revised Position:

2.1 The Government of India has reviewed the position in this regard and decided to permit

foreign investment, up to 49%, in Power Exchanges, registered under the Central Electricity

Regulatory Commission (Power Market) Regulations, 2010, as below:

(i) Such foreign investment would be subject to an FDI limit of 26 per cent and an FII limit of

23 per cent of the paid-up capital;

(ii) FII investments would be permitted under the automatic route and FDI would be permitted

under the government approval route;

(iii) FII purchases shall be restricted to secondary market only;

(iv) No non-resident investor/ entity, including persons acting in concert, will hold more than 5%

of the equity in these companies; and

(v) The foreign investment would be in compliance with SEBI Regulations; other applicable

laws/ regulations; security and other conditionalities.

3.0 Insertion of new paragraph 6.2.26:

3.1 Accordingly, a new paragraph 6.2.26 is inserted under 'Circular 1 of 20 12-Consolidated FDI

Policy', effective from April 10, 2012, as below:

6.2.26 Power Exchanges

6.2.26.1 Power Exchanges registered 49% (FDI &FII) Government

under the Central Electricity (for FDI)

Regulatory Commission

(Power Market) Regulations,

2010

6.2.26.2 Other conditions:

(i) Such foreign investment would be subject to an FDI limit of 26 per cent and an

FII limit of 23 per cent of the paid-up capital;(ii) FIr investments would be permitted under the automatic route and FDI would be

permitted under the government approval route;

(iii) FIr purchases shall be restricted to secondary market only;

(iv) No non-resident investor/ entity, including persons acting in concert, will hold

more than 5% of the equity in these comp:Uies; and

(v) The foreign investment would be in compliance with SEBI Regulations; other

applicable laws/ regulations; security and other conditionalities.

4.0 The above decision will take immediate effect.

Joint Secretarx.te-th

D/o IPP File No.: No. 5/5/2012-FC.I dated: 20thSeptember, 2012

Copy forwarded to:

1. Press Information Officer, Press Information Bureau- for giving necessary publicity.

2. BE Section in the Department of Industrial Policy and Promotion- for uploading the Press

Note on DIPP's website.

The transaction cost in imports and exports in India is around 15 per cent of the cost of the goods

1.       ” Study on Trade Facilitation Gap Analysis for Border Clearance Procedures in India, undertaken on behalf of the Centre for WTO Studies, Indian Institute of Foreign Trade, New Delhi, and supported by Ministry of Commerce, Govt. of India,

“Some estimates suggest that the transaction cost in imports and exports in India is around 15 per cent of the cost of the goods.

 If the time taken for clearance of import and export cargo can be brought down by 5 days from the present 10 days, there will be significant savings for the economy as a whole.

This is only to highlight the importance of Trade Facilitation to the economy. Further, competition in the international market place is getting more and more intense and unless India incrementally improves the efficiency in expediting the flow of goods at minimum time and cost, its competitiveness in international market would continue to be adversely affected

 That consignment of ACP clients would be considered as low risk and normally such import consignments of ACP clients will not be subjected to examination.

A more liberal view in respect of imports by those qualified under Accredited Client Programme (ACP) should be adopted.

Delay in the transportation of containers  to CFS  due to  monopoly of the Shipping Agents ,even , the Commissioner of Customs, Chennai had issued a public notice permitting the importers/CHAs to move the containers from the Terminal to the CFS but the Shipping Agents filed a writ petition against the  Public Notice and obtained a Stay Order from the Hon‟ble High Court.

 The system of stacking the containers, lack of adequate labour and equipment and the shortage of officers contribute to the delay in the examination

It is important to remember that today, the attempt is to create an environment of trade facilitation. There is a need for a shift in the focus from penal provisions to facilitation measures. This need not mean that violations of the law should be overlooked A more liberal view in respect of imports by those qualified under Accredited Client Programme (ACP) should be adopted”.

phablet customs classification and rate of duty in India

Import invoice can be in Indian Rupees

1.Import contract may be concluded  in Indian Rupees. Where the contracts are in Indian Rupees, the related documents are also prepared in Indian Rupees and no  conversion is involved. Import invoice can be in Indian Rupees.Customs will not have any problem until there is a duty evasion on account of valuation.In another   words ,there should not be any change in Assessable Value of imported goods.  Contract are to be executed before import process begins This is practiced to minimize import risk  on  account of  currency fluctuation . Foreign remittance  are governed by RBI. You may contact your bank for payment related to imported  goods.Brief points are highlighted as ready reference.

                    2. Payment in Indian Rupee for Import: As per Regulation  5(2) of  Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000 , payment  in Indian Rupee  for  import  into India , when the goods are shipped from Bangladesh, Islamic Republic of Iran,Myanmar, Pakistan and Sri Lanka but supplier is                              not a resident of these countries . Nepal is excluded from this sub rule of  Regulation.

                  

                   3. Alternatively, Payment for goods shipped from above Countries  may also be made into any permitted foreign Currency.

                   4. Payment for goods  shipped from other than above countries are to   be made in a currency appropriate to the country of shipment of goods.

labelling on wholesale package of imported food item is exempted as per 2,6.5 of Food Safety and Standards (Packaging and Labelling) Regulations, 2011 and also as per Honourable Madras High Court order

As per para 32 of Madras High Court  order  in case of M/S.Foodlever India Pvt. Ltd vs Senior Inspecting Officer ,dated 16 March, 2012, labelling is exempted for wholesale package as  per  para 2.6.5 of   Regulation  2011 of FSSAI. E


   Futher ,even if  there is label deficiency ,same can be rectified by sticking label on goods.

Relevant paras  of above said order are reproduced for  more clarity.


"19. The learned counsel appearing on behalf of the petitioner had also relied on the decision of the Central Excise and Sales Tax Tribunal, made in Commissioner of Cus.(Prev.), Kolkata Vs. Dipika Enterprise [2009(246) E.L.T. 407 (Tri.-Kolkata)], wherein it had been held that certain deficiencies in the labelling requirements can be rectified by putting the necessary information on the imported goods, by way of stickers.The goods concerned can be cleared after the removal of such defects."





" 32. It is also noted that, regulation 2.6.5 of the Regulations states that, in case of whole sale packages, the particulars regarding the list of ingredients, date of manufacture/packing, best before, expiry date, labelling of irradiated food and vegetarian logo/non-vegetarian logo, may not be specified. It is the specific case of the petitioner that the dark chocolates imported from Singapore are not meant for retail sale. Therefore, it has been contended that the goods imported by the petitioner, in wholesale packages, need not declare such particulars, contrary to the claims made by the respondents.


33. Further, from the adhoc guidelines issued by the Director of Food Safety and Standards Authority of India, Ministry of Health and Family Welfare, Government of India, dated 12.10.2011, it is seen that certain labelling deficiencies can be rectified, by providing the necessary information, by affixing a label containing the necessary information. Further, the communication, dated 20.5.2011, issued by the Senior Inspecting Officer, Food Safety and Standards Authority of India, Ministry of Health and Family Welfare, Government
of India, makes it clear that certain minor labeling defects may be rectified, in the custom s warehouse, under the supervision of the officers of the customs department, prior to the release of the consignments.

34. Further, from the decisions cited by the learned counsel appearing on behalf of the petitioner, it is seen that the goods in question could be released, after proper tests are conducted to find out if they are fit for human consumption. It had also been made clear that certain deficiencies in the labelling requirements, which are rectifiable in nature, could be removed by furnishing the necessary information, by way of stickers, as held by the Customs, Excise and Service Tax Appellate Tribunal. While so, it would not be appropriate for the
respondents to reject the request of the petitioner to take samples of the imported goods, to be sent for testing by the laboratories concerned.

35. No doubt the food items imported by the petitioner should not be released if they are found to be unfit for human consumption, or in case they are found to contain other ingredients, which are not declared in the label attached to the cover, wrapper or container, containing such items. As such, this Court is of the considered view that nothing has been shown on behalf of the respondents to substantiate their claims that the necessary information should be furnished, only in a printed format, on the cover, wrapper or container and not by way of a label stuck on them.

36.Further, the respondents have not been in a position to show that they have the power or authority to refuse the request of the petitioner, for taking the samples of the imported goods for the purpose of testing. As such, the impugned letter of the first respondent, dated 12.1.2012, is set aside. The respondents are directed to make the necessary arrangements for taking the samples of the goods in question, imported by the petitioner, and to send the samples for testing, by the authorized laboratories, within a period of seven days from the date of receipt of a copy of this order. On receipt of the report from the laboratory concerned, the goods shall be

released only if they are fit for human consumption, on the payment of the appropriate duty, as prescribed by law. Accordingly, the writ petition stands allowed. Consequently, connected miscellaneous petition is closed."

Valuation practice of second hand machinery under Customs Valuation

Circular No. 4 /2008-Customs

F. No. 467/34/2006-Cus.V

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

New Delhi, 12^th February, 2008

To,

All Chief Commissioners of Customs,

All Chief Commissioners of Central Excise,

All Chief Commissioners of Customs & Central Excise,

All Directorate-Generals, Chief Departmental Representative,

All Commissioners of Customs,

All Commissioners of Central Excise, and

All Commissioners of Customs & Central Excise

Sir,

Subject: Valuation practice of second hand machinery to be adopted by all Custom Houses/ Customs Commissionerates-regarding/-

         

 It has been noticed that the Custom Houses / Customs Commissionerates have been adopting different assessment practices with regard to valuation of imported Second Hand Machinery / Capital Goods.  As this was resulting into diverse assessments the following guidelines are being issued so that assessments are done as far as possible on their basis.

2.         A careful analysis of the Tribunal decisions and an Apex Court judgement on the issue of valuation of second-hand machinery reveal the following views of the judiciary:

i)                    If other parameters of Section 14 of the Customs Act, 1962 are satisfied, the transaction value method of Rule 3 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 can also be applied to importation of second-hand machinery sold for export i.e. it was imported immediately after sale without any further usage abroad. 

ii)                  However if transaction value of Rule 3 is rejected, valuation of second-hand machinery can be done under Rule 9, on the basis of value of new machine, as certified by the Chartered Engineer, and scaled down by allowing depreciation commensurate with the period of usage.  Supreme Court judgement in the case of Gajra Bevel Gears [2000(115) ELT 612 (SC)] refers in this regard.

iii)                However, transaction value of Rule 3 cannot be rejected by ab initio application of Rule 9, inasmuch as one cannot, before rejecting transaction value of Rule 3 with sufficient evidences, straightaway arrive at a notional value under Rule 9.

3.         It may thus be seen from the judicial decisions that, before redetermination of value of second hand machinery under Rule 9, it is essential to reject the transaction value of Rule 3.  There would be no difficulty in rejection of transaction value in those cases where the assessing officer is able to assail the documents like Chartered Engineer’s Certificate, invoice, etc., as manipulated or fraudulently obtained.  Similarly, there will also be no difficulty in rejection of transaction value in cases where the assessing officer proves that certain basic particulars like description, period of usage, extent of the re-conditioning, year of manufacture, model no., price when new, etc., are misdeclared either in the Chartered Engineer’s Certificate or in the invoice.   There will also be no difficulty in rejecting the transaction value in cases which are hit by the provisions to Sub-Rule (2) of Rule 3.  Difficulties may however be faced in situations other than those described above. 

4.         In this context, attention of the assessing officers is drawn to Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 which provides for rejection of declared value under certain circumstances.  Following views have emerged from various Tribunal decisions on the application of Rule 12:

i)                    Rule 12 empowers the Revenue not to determine the value of the imported goods on the basis of transaction value under Rule 3 (1) of the Valuation Rules.  The Tribunal decision in the case of Chandni International [2003 (153) ELT 312] refers.

ii)                  Rule 12 provides that when the proper officer has reason to doubt the truth or accuracy of the value declared, he may ask the importer to furnish further information or other evidence.  If he still has reasonable doubt about the truth or accuracy of the value so declared, it shall be deemed that the transaction value of the goods cannot be accepted.  It is therefore required to determine whether the evidences constitute reasonable doubt for the assessing officer to doubt the value of the goods.  The Tribunal decision in the case of Sunny Enterprises [2004 (175) ELT 420] refers.

iii)                Rule 12 is a procedural provision, which is meant to act as an aid in determining as to whether Sub-Rule (1) or Sub-Rule (4) of Rule 3 would be applicable in a given case.  This deeming provision contained in Rule 12 has necessarily to be pressed into service at the very initial stage under the sequential scheme. It has no role after the scheme has worked out.  The Tribunal decision in the case of Venus Insulation Products Mfg. Co. [2002 (143) ELT 364] refers.

5.         Thus in respect of valuation of second hand machineries as well, the assessing officers may apply Rule 12 in appropriate cases.  As an illustration, if the declared value of a second hand machinery is found to be much below the value arrived at by the depreciation method on the basis of the certified price of the new machinery in the year of its manufacture, the assessing officer may have reason to doubt the truth or accuracy of the declared value, and ask the importer to furnish further information and explanation.  If he is satisfied, he may accept the declared value.  But, if he still has reasonable doubt about the truth or accuracy of the declared value, he can reject the declared value under Rule 12, and proceed to re-determine the value under Rule 9 by following the Board’s circular No. F.No. 493/124/86-Cus VI dated 19.11.87 in respect of the depreciation to be extended to such second hand machinery. 

6.         In fact, for other imported goods as well, the method for acceptance or rejection of declared value, and then re-determination of value in case the declared value is rejected, would be similar to that in the case of second hand machinery, as explained hereinabove.

7.         In cases where the declared value is rejected, and assessable value is re-determined, the assessing officer shall issue a detailed speaking order, giving the reasons for such rejection, by invoking the provisions of Rule 12 or Rule 3(2), as appropriate, and giving the reasons for re-determination of value under appropriate provision.

8.         Guidelines in respect of some other issues related to valuation of second hand machinery are as follows:

(a)        For valuation of second hand machinery / capital goods, the assessing officers must insist on importers submitting a certificate issued by an independent Chartered Engineer or any equivalent in the country of supply.  The certificate should indicate interalia:-

            i)          Price of new machinery as in the year of its manufacture,

            ii)         Current CIF value of new machinery if purchased now,

            iii)        Year of the manufacture of machinery,

            iv)        Sale price of the supplier,

            v)         Present condition of machinery,

vi)        Nature of reconditioning or repairs carried out, if any, and the cost (including the dismantling cost, if any) thereof,

            vii)       Expected life span.

(b)        There is no need to specify the agencies whose certificates alone, issued at the port of loading, would be accepted.  The number of such agencies should not be limited.

(c)        In the absence of proper Load Port Certificate, a local Chartered Engineer’s Certificate may be accepted. Each Custom House may consider issuing Public Notices giving names and addresses of Chartered Engineers, whom the trade can contact for issuance of CE Certificate. 

(d)       It is not essential to have the examination of the second hand machinery by a panel of officers, since in many Customs formations no machinery expert is posted.  The routine examination of second hand machinery being done by the Docks staff shall continue. 

9.         The aforesaid guidelines regarding valuation of second-hand Machinery as contained in foregoing paragraphs 3 to 8 shall be strictly followed.

10.       Any difficulty in the implementation of the foregoing guidelines may be brought to the notice of the Directorate General of Valuation, Mumbai with a copy to the Board. 

                                                                                                                                                                               

                                                                                              

(M. K.  SINGH)

Director (International Customs)

Related notifications ,circulars for export to Nepal ,Bhutan, Bangladesh

  Procedure for export  by merchant exporters .

·      A merchant exporter can export excisable goods either directly from the premises of the manufacturer, with or without sealing of export consignment, or through his premises under claim for rebate of duty or under bond.

·      In case of export under bond, the merchant exporter is required to execute bond either with the jurisdictional Assistant Commissioner having jurisdiction over the factory of the manufacturer or with the Maritime Commissioner.

·      The merchant exporter can execute consolidated B-1 general bond with the Maritime Commissioner and obtain "Block Transfers" from him along with attested copies of B-1 consolidated bond executed for various ports or manufacturers and export the goods under bond. The merchant exporter can also export goods on manufacturer’s bond.

·      He can also claim rebate of duty paid on exported goods either from the Assistant Commissioner of Central Excise having jurisdiction over the factory of the manufacturer or from the Maritime Commissioner.

·      The merchant exporter is also required to take disclaimer certificate from the manufacturer as well, in case he wants to avail the export benefits.

 Special procedure to export to Nepal

Export to Nepal is governed by special procedure provided in notifications issued under Rule 12 & 13. The procedure is as explained below:-

Notification no. 47/94-CE(NT) dated 22.9.94 – payment of rebate to His Majesty’s Government of Nepal.

Goods for export to Nepal are to be cleared from the registered factory on Nepal Invoice prepared in quadruplicate and marked ‘For Export to Nepal’ on payment of duty.

The Nepal Invoice is to be presented along with the goods to be exported before the Central Excise officer.

The Central excise officer shall verify the goods and seal the packages with the Central Excise seal. After making necessary endorsement on the Nepal invoice to this effect, he will hand over the original copy of the invoice to the exporter. Duplicate and triplicate copies of the Nepal invoice after being put in a sealed cover are handed over to the exporter for giving the same to the Customs officer incharge of the Land Customs Station, mentioned on the invoice and through which the goods are to be exported to Nepal.

On arrival at the Land Customs Station, exported goods are to be presented to the Customs officer along with the original copy of the Nepal invoice and sealed cover containing duplicate and triplicate copy of invoice. The Customs officer incharge, after verification of the goods with the invoice makes an endorsement on all copies of the invoice. The original copy is handed over to the exporter and the duplicate and triplicate copies are sent directly to the Nepalese Customs Officer incharge of the check post through which the goods are to be imported into Nepal.

The Nepalese Customs officer will return the duplicate copy of the invoice after endorsement regarding verification and allowing import into Nepal, to the Customs officer incharge at Indian Land Customs Station who is to forward the same to the Deputy Director of Inspection, Customs and Central Excise, Nepal Wing, for grant of rebate to His Majesty’s Government of Nepal.

Notification no. 51/94-CE (NT) dated 22.9.94 as amended – procedure for export to Nepal and Bhutan without payment of duty.

Export under bond without payment of duty to Nepal and Bhutan is subject to the following conditions

a.  the payment for goods shall be in freely convertible foreign currency; and

b.  the importer shall open an irrevokable letter of credit in favour of the exporter in India before the export takes place, subject to certain conditions prescribed in the notification.

The exporter is required to execute a bond under Rule 13 before the Assistant Commissioner of Central Excise having jurisdiction over the factory of the manufacturer or any other place from where the goods are to be exported and is required to furnish a certificate in Appendix 1 to the said notification from the Reserve Bank of India or any other bank duly authorised to deal in foreign exchange showing that full payment has been received.

On receipt of the said certificate and on completion of the conditions of the bond, the exporter shall be discharged of his liabilities under the bond. Capital goods are permitted to be exported to Nepal against any global tender invited by His Majesty’s Government of Nepal and the payment for which is received in the Indian currency, without payment of duty, subject to the condition that the exporter executes a bond and furnishes a certificate duly signed by the concerned Bank of India that full payment has been received in Indian currency by the said bank.

On receipt of such certificate and on completion of the conditions of the bond, the exporter is discharged of his liabilities under the bond.

The exporter is required to follow the procedure as provided in Appendix 2 to the said notification. The procedure is explained below

The exporter is required to make 6 copies of the invoice as prescribed in Annexure-A to the notification and make the following declaration on the same:

" I/We declare that the goods entered herein are intended for export to Nepal/Bhutan in bond, and shall not be diverted or delivered en route to any other country".

The exporter shall present all the 6 copies of the invoice duly filled in along with the goods before the proper officer of Central Excise. The proper officer after verification of the goods and sealing them would make an endorsement on all the copies of the invoices.

The original copy of the invoice is given to the exporter. Duplicate, triplicate and quadruplicate copies under sealed cover are given to the exporter for delivering the same to the Customs officer incharge of the Land Customs Station through which the goods are to be exported. The quadruplicate copy is forwarded to the Central Excise officer who has accepted the bond and quintuplicate copy is retained by the proper officer.

On arrival at the Land Customs Station, the goods are presented before the Customs officer incharge along with original copy of the invoice and the sealed cover containing copies of invoices.

The Customs officer, after verification of the goods with the invoices would make the endorsement on the invoice and hand over the original copy to the exporter. The duplicate and triplicate copies are sent directly to the Nepalese or Bhutanese, as the case may be, Custom officer incharge Land Customs Station through which the goods are to be imported into Nepal or Bhutan.

The Customs officer incharge of Land Customs Station at Nepal or Bhutan will return the duplicate copy of the invoice, after making an endorsement thereon regarding verification and allowing of import into Nepal or Bhutan, directly to the Customs officer incharge Land Customs Station in India.

The same is eventually forwarded to the Central Excise officer incharge of the factory or warehouse from where the goods were removed for export.

                        Source -http://cenexcisenagpur.nic.in/Excise/exciseintro.htm

Notifications:

1.

       

 [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)

Notification No. 13/2011 - Customs (N.T.)

 New Delhi, the 24th February, 2011

G.S.R. 108 (E). – In exercise of the powers conferred by sub-section (2) of section 76 of the Customs Act, 1962 (52 of 1962), the Central Government, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.208/1977-Customs, dated the 1st October, 1977, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 1st October, 1977, namely:-

           In the said notification, in paragraph 2, before the Explanation, the following proviso shall be inserted, namely,-

     “Provided that no drawback shall be allowed if the goods exported were imported into India from third countries and exported to Nepal.”

F. No.  609/147/2010-DBK

(B. L. MEENA)

Under Secretary to the Government of India 

Note. - The principal notification No. 208/77-Customs, dated the 1st October, 1977 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 1st October, 1977 and was last amended vide notification No. 24/2009-Customs (N.T.) dated the 03rd  March, 2009 vide number G.S.R. 147(E), dated the 03rd  March, 2009.

  Restriction for exporting goods to Nepal without duty payment as same are prone to be smuggled back into India.

( Para 20.4 is reproduced from  Customs Manual 2011)

"20.4  Section 69 of the Customs Act, 1962 provides that if the Central Government

is of opinion that warehoused goods of any specified description are likely to be

smuggled back into India, it may, by notification in the Official Gazette, direct that

such goods shall not be exported to any place outside India without payment of duty

or may be allowed to be so exported subject to such restrictions and conditions as

may be specified in the notification.

In exercise of powers under Section 69 of the Customs Act, 1962, the following notifications have been issued:

(i) Notification No.45-Cus., dated 13-2-1963 provides that the warehoused goods

shall not be exported to Bhutan, Nepal, Burma, Sikang, Tibet or Sinkiang,However, the warehoused goods can be exported to Nepal under the following circumstances:

(a) If goods are exported against an irrevocable letter of credit in freely

convertible currency;

(b) If goods are exported for supplies to projects financed by any UN

Agency or IBRD Association or ADB or any other multilateral agency of

the like nature and for which payments are received in freely

convertible currency; and

(c) If the specified capital goods are supplied against any global tender

invited by HMG of Nepal for which payment is received in Indian

Rupees. These goods can be exported only from Jogbani or Raxaul

LCS on production of bank certifies of receipt of the payment in freely

convertible currency or Indian Rupees, as the case may be."

"10. Export of container cargo from ICDs/CFSs to Bangladesh and Nepal

through LCSs:

10.1 Movement of export cargo from ICDs/CFSs to Nepal and Bangladesh through

Land Customs Stations is as per the following procedure:

(a) The exporters are required to bring their goods meant for export to ICD/CFS,

and to file six copies of Shipping Bills (including two transference copies)

along with all necessary documents like GR Form, AR Form, certificates

issued by Export Promotion Councils, etc. The Shipping Bill is assessed as

usual, the goods are to be examined and samples drawn, if required.

Inspection can be carried out by other agencies if applicable under other

Allied Act(s). After the assessment of Shipping Bill, the original and duplicate

copies of Shipping Bill along with two more copies (transference copies) and

original GR Form are to be retained at the ICD. The original GR form is to be

forwarded to the concerned branch of Reserve Bank of India.

(b) The examination order is to be given on duplicate and transference copies of

the Shipping Bill. The examination report shall be recorded on all these

copies. The duplicate copy shall be retained in the ICD/CFS and both

transference copies shall be forwarded to the LCS through the carrier in a

sealed cover along-with a copy of invoice, packing list and other required

documents. After examination, the goods shall be stuffed in a container and

the container shall be sealed with tamper proof bottle seal. The seal no. shall

be recorded in the copies of Shipping Bill and AR form. The copies of

Shipping Bill and the AR form shall be duly endorsed with the examination report and loading report recording the container number etc. and this shall be

jointly signed by the Customs, carrier and the exporter’s representative.

(c) The carrier shall then transport the containers by road or/and rail upto the

LCS. At the LCS, both transference copies of Shipping Bill shall be submitted

by the carrier to the proper officer of Customs. The Customs Officer shall

inspect the seal of the container and if found intact and the seal no. tallies with

the Shipping Bill, he shall record the same in the transference copies of the

Shipping Bill and the AR 4 form, as given below, and put his name, signature

and date before allowing the movement of the containers into

Nepal/Bangladesh, as the case may be.

"Inspected and seals found intact, Seal Nos. found to tally with the Shipping Bill and

AR 4 form".

(d) In case the Customs seal on the container is found broken or tampered with

or some discrepancy found in the seal nos., the matter shall be brought to the

notice of the Deputy/Assistant Commissioner of Customs and such container

shall be subjected to 100% examination. If any deviation from the Shipping

Bill or invoice is detected during examination, adjudication proceedings may

be initiated.

(e) In case the Customs seal on the container is found intact as per documents

and the documents are in order, the Proper Officer at the LCS shall endorse

the transference copies of Shipping Bill with "Export Allowed". He may also

make an endorsement to the effect that the container has been duly identified

by him and has crossed the border into Nepal/Bangladesh on both the copies

of Shipping Bill and AR form at the time of actual export. One copy of the

Shipping Bill may be retained at the LCS and the other transference copy

shall be returned to ICD/CFS from which the container had originated.

(f) On receipt of transference copy of the Shipping Bill, the Customs at the

originating ICD/CFS shall match it with duplicate copy of Shipping Bill so as to

ensure that the goods have been exported. If the copy is not received within

90 days, the Assistant/Deputy Commissioner of Customs at the originating

ICD/CFS may raise a demand on the custodian equal to the export duty and

Drawback in respect of the export goods in addition to any other action that

may be taken against the exporter. He may also intimate the DGFT and RBI

accordingly. The matter shall also be reported to the jurisdictional

Commissioner of Central Excise for recovery of excise duty on the goods.

(g) To ensure safety and security of goods during transit to LCS, the custodian of

the ICD has to furnish a bond with security as is being done for movement of

cargo from ICDs/CFSs to the gateway port. The bond shall be debited with the value of the goods every time a container is given to carrier for transport.

The amount can be re-credited once the proof of export is received.

(h) The facility for movement of export cargo from ICDs/CFSs to Nepal and

Bangladesh mentioned above shall be available if cargo is moved through

LCSs at Petrapole and Gede in Indo-Bangladesh border and Raxaul and

Nautanwa (Sonauli) at Indo-Nepal border."

[Refer Circulars No.18/2002-Cus., dated 13-3-2002 ;and No. 61/2003-Cus., 18-7-2003]