Customs - Assessment of Bulk Liquid Cargo Imports
TIOL-DDT 2897
27 07 2016
Wednesday
CBEC has decided that in case of all bulk liquid cargo imports, whether for home consumption or for warehousing, the shore tank receipt quantity i.e., dip measurement in tanks on shore into which such cargo is pumped from the tanker, should be taken as the basis for levy of Customs Duty irrespective of whether Customs Duty is leviable at a specific rate or ad-valorem basis [including cases where tariff value is fixed under Section 14(2) of the Customs Act, 1962].
Board also clarifies that where bulk liquid cargo is cleared directly on payment of duty without being pumped in a shore tank, assessment may continue to be done as per ship's ullage survey report at the port of discharge.
Board has rescinded the Circular No. 96/2002-Customs dated 27.12.2002 & Circular No. 06/2006 dated 12.01.2006.
In the Mangalore Refinery and Petrochemicals Limited 2015-TIOL-199-SC-CUS. case, the Supreme Court had held, the quantity of crude oil actually received into a shore tank in a port in India should be the basis for payment of customs duty. This judgement was delivered on 02.09.2015 and now the Board seems to have officially accepted the verdict.
CBEC Circular No. 34/2016-CUSTOMS., Dated July 26, 2016
Wooing Gold Trade-Massive Simplification of Excise Duty on Articles of Jewellery
IN this year's Budget, central excise duty of 1% without credit or 12.5% with credit was imposed on articles of jewellery falling under heading 7113 of the First Schedule to the Central Excise Tariff 1985. Subsequent to that, the Government had set up a Sub-Committee of the High Level Committee, headed by Dr. Ashok Lahiri to interact with Trade & Industry on issues relating to procedure and compliance relating to excise duty of articles of jewellery. The Sub-Committee has given its report on 23.06.2016, which has been accepted by the Government.
The time limit for taking central excise registration of an establishment by a jeweller was extended up to 31.07.2016. Further, it was provided that though, the liability for payment of central excise duty will be with effect from 1st March, 2016, the assessee jewellers may make the payment of excise duty for the months of March, 2016; April, 2016 and May, 2016 along with the payment of excise duty for the month of June, 2016 upto an extended date of 31.07.2016.
Now, in its effort to woo the jewellers and simplify the procedures for them, the Government has issued notifications and circulars yesterday. The jewellers must appoint highly qualified consultants to read, understand and then explain the simplified law to them.
Also please see DDT 2881 , DDT 2888 & Levy of Excise Duty on Jewellery: SSI eligibility limit hiked to Rs 15 Crore; No excise audit for two years; Optional scheme to be introduced for smaller units
The massive literature issued by the Board has been summarised and tabulated as:
NOTIFICATIONS
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Notification No.
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Gist of notifications
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Amends notification No. 12/2012-Central Excise so as to prescribe 1% excise duty (without input and capital goods credit) on parts of articles of jewellery falling under heading 7113 of the Central Excise Tariff, and to prescribe a criteria for classification of an articles of jewellery or part of articles of jewellery or both as that of a particular precious metal. |
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Partially exempts Central Excise duty on articles of jewellery falling under heading 7113 of the Central Excise Tariff Act, 1985 (5 of 1986) manufactured by: (a) re-conversion of jewellery given by the retail customer, or (b) mounting of precious stone given by the retail customer. |
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Amends notification No. 8/2003-Central Excise dated 1st March, 2003, so as to increase (a) the SSI Exemption limit from Rs. 6 crore to Rs. 10 crore; and (b) the SSI Eligibility limit from Rs. 12 crore to Rs. 15 crore. |
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Amends notification No. 17/2011-Central Excise, dated the 1st March, 2011, so as to exclude handicrafts falling under heading 7113 of the Central Excise Tariff, from the purview of excise duty exemption for “handicrafts”. |
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Notifies the first sale value, that is the value at which such articles of jewellery or parts of articles of jewellery or both, are sold for the first time, as the tariff value; |
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Notifies the Articles of Jewellery (Collection of Duty) Rules, 2016. These rules, provide manner of payment of Central Excise duty on articles of jewellery or parts of articles of jewellery or both, including an optional scheme for payment of such Excise duty. |
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Seeks to amend the Central Excise Rules, 2002 in relation to articles of jewellery or parts of articles of jewellery or both, so as to: i. provide that the quarterly return (ER.8) will also apply to the manufacturers or principal manufacturers of parts of articles of jewellery, falling under heading 7113; ii. prescribe that the date of submission of quarterly return, for manufacturers or principal manufacturers of articles of jewellery or parts of articles of jewellery or both, falling under heading 7113, for quarter ending on 31st March, 2016, and quarter ending on 30th June, 2016, shall be the 10th August, 2016; and iii. as separate rules are being prescribed for articles of jewellery or parts of articles of jewellery or both falling under heading 7113 of the said Schedule to the said Tariff Act, applicability of Rule 12AA is being restricted to articles of precious metals falling under heading 7114. |
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Amends the CENVAT Credit Rules, 2004 in relation to articles of jewellery or parts of articles of jewellery or both, so as to include a principal manufacturer of articles of jewellery or parts of articles of jewellery or both as manufacturer for the purposes of the CENVAT Credit Rules, 2004. |
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Provides a modified format for quarterly return, ER-8, for return of excisable goods cleared at the Central Excise duty rate of 1% [including articles of jewellery or parts of articles of jewellery or both, falling under heading 7113] or 2%. |
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Amends notification No. 35/2001-Central Excise (N.T.) so as to: (i) provide that a person engaged in the manufacture of articles of jewellery or parts of articles of jewellery or both, may get himself registered by 31st day of July, 2016; (ii) exempt a person engaged in the manufacture of articles of jewellery or parts of articles of jewellery or both, from the requirement to submit plan of the factory premises under simplified registration procedure. |
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Amends notification No. 17/2006-Central Excise (N.T) dated the 1st August, 2006 so as to exempt a manufacturer or principal manufacturer of articles of jewellery or parts of articles of jewellery or both, from filing of annual return. |
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Amends notification No. 36/2001-Central Excise (N.T.) dated 26th June, 2001, so as to exempt a manufacturer or principal manufacturer of articles of jewellery or parts of articles of jewellery or both, from taking central excise registration upto the full exemption limit. |
CIRCULARS
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Circular No.
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Gist of circulars
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Clarification on computation of exemption and eligibility and exemption limits and other related issues for small scale industries. |
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Guidelines for Excise Audit of Manufacturers / Principal Manufacturers of articles of jewellery or parts of articles of jewellery |
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Export related procedural simplifications-excise duty on articles of jewellery falling under heading 7113. |
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General procedures regarding excise duty on articles of jewellery or parts of articles of jewellery or both falling under heading 7113. |
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Guidelines for issue of summons, visits, search, seizure, arrest and prosecution regarding manufacturers or principal manufacturers of articles of jewellery or parts of articles of jewellery or both. |
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Taxability of stock on February 29, 2016-Excise duty imposition on articles of jewellery in the Budget 2016-17. |
CBEC TRU D.O.F.No. 354/25/2016-TRU (Pt.-I)., Dated July 26, 2016
Scrumptious Circulars!
IT is also interesting to note that the Board in the Circulars issued yesterday, while throwing light on the complex notifications issued to make life simple for the jewellers, has employed a rather unusual and unintended word in the following sentence appearing in the Circulars 1040/28/2016-CX, 1041/29/2016-CX & 1044/32/2016-CX respectively.
The sentence goes thus-
Accordingly, notwithstanding anything to the contrary provided in any other circular/instructions, the following guidelines for such actions in respect of manufacturers/principal manufacturers of articles of jewellery may be followed scrumptiously,-
Perhaps what the Board meant was ‘scrupulously'. But then, I may be wrong since the dictionary describes the word ‘scrumptiously' as very pleasing, especially to the senses; delectable; splendid: and this is precisely what the Board wants the notifications to mean to the jewellery sector-appealing, that is!
FTP-Minimum Export Price of Potatoes
GOVERNMENT has fixed USD 360 per MT as Minimum Export Price (MEP) for export of potatoes.
DGFT Notification No. 15/2015-2020., Dated July 26, 2016
No Export Duty on Organic Sugar
GOVERNMENT has fixed nil rate of duty for Organic sugar upto 10,000 MT in a year beginning with October and ending with September subject to the following conditions:
(i) The export of organic sugar is done in terms of the Public Notice No.73 (RE-2013)/2009-2014 dated 18th November, 2014 and No.10/2015-2020 dated 5th May, 2015 of the DGFT; and
(ii) The exporter produces a Registration-cum-Allocation Certificate (RCAC) issued by the Agricultural and Processed Food Products Export Development Authority (APEDA) certifying the quantity of export of organic sugar eligible to be exported by claiming exemption from export duty:
Notification No. 43/2016-Customs., Dated: July 26, 2016
Anti Dumping Duty on Rubber Chemicals-Extended
GOVERNMENT has extended the anti dumping duty on certain Rubber Chemicals originating in, or exported from, European Union and People's Republic of China, imposed vide Notification No.67/2011-Customs, dated the 28th July, 2011. The Notification was to expire today. It is extended till 27.07.2017.
Notification No. 35/2016-Customs (ADD)., Dated: July 26, 2016
Govt Notifies Pay Revision for Babus
THE much hyped 7th Pay Commission recommendations are finally to be implemented. Government has published its resolution and the Revised Pay Rules. Babus are to get about 14% increase in their basic pay for now. Government is yet to decide on allowances. This is going to cost the Government one lakh crores, but the employees don't seem to be happy with this paltry hike after ten years.
GST-States Oppose Dual Control
THE Union Finance Minister Jaitley had a meeting yesterday with the Finance Ministers of the States. Majority of the States opposed the Dual Control in GST administration. Of course as we reported, the North Block bureaucrats themselves are not clear on this.
Taxes, like water, have a tendency to find the lowest level. Taxes, therefore, ultimately affect the common man.
Until Tomorrow with more DDT
Have a nice day.
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