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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS
(DIRECTORATE GENERAL OF EXPORT PROMOTION)
NEW DELHI

CIRCULAR NO

7/2021-Customs, Dated: February 22, 2021

To,

All Pr. Chief Commissioners/Chief Commissioners of Customs/Customs (Prev.),
All Pr. Chief Commissioners/Chief Commissioners of Central Tax/Central Excise,
All Pr. Commissioners/Commissioners of Customs/Customs (Prev.),
All Pr. Commissioners/Commissioners of Central Tax and Central Excise,
All Pr. Director Generals/Director Generals under CBIC.

Subject: Clarification regarding payment of Agriculture Infrastructure and Development Cess (AIDC) by EOU under various situations and amendment to Circular no. 35/2016-Customs dated 29.07.2020 - regarding.

Finance Bill, 2021 (15 of 2021) dated 01.02.2021, vide clause 115 has imposed a duty of customs, to be called Agriculture Infrastructure and Development Cess (AIDC), on the import of goods specified in the First Schedule to the Customs Tariff Act, 1975 at the rate not exceeding the rate of customs duty as specified in the said Schedule, for the purposes of financing the agriculture infrastructure and other development expenditure. The said provision of clause 115 of the Bill has been given immediate effect under the Provisional Collection of Taxes Act, 1931.

1.1 In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with clause 115 of the said bill, Government of India vide Notification No. 11/2021-Customs dated 1st February, 2021 vide Sr. no. 19 read with serial no. 7 of the Annexure to the said notification has fully exempted goods imported by EOUs/EHTP units/STP units (collectively called EOUs) from the AIDC as the goods imported by these units enjoy benefit of exemption from basic customs duty under notification no. 52/2003-Cus dated 31.03.2003.

1.2 In case of EOU selling finished goods in DTA, BCD exempted on import of inputs used in such finished goods is to be paid vide Notification No. 59/2017-Customs dated 30.06.2017 [amending by Notification No. 52/2003-Customs dated 31.03.2003]. On payment of such BCD by EOU at the time of clearance of finished goods it is treated as if no exemption of BCD was allowed to the EOU under Notification No. 52/2003-Customs dated 31.03.2003. Once it is deemed that no exemption of BCD on inputs is allowed which were imported under exemption Notification No. 52/2003-Customs dated 31.03.2003, AIDC exemption under Notification no. 11/2021-Customs dated 01.2.2021 also gets denied on such inputs and same is also required to be paid by EOU.

1.3 In addition to clearance of goods in DTA there are many situations like clearance of inputs; capital goods; packing material suitable for repeated use such empty cones, bobbins, containers; left over textile fabric or textile material etc. or exit from EOU scheme. In such cases duty/tax of which exemption under Notification No. 52/2003-Customs dated 31.03.2003 was availed at the time of import is required to be paid at the time of clearance. In case of clearance of capital goods, applicable depreciation is allowed for denial of exemption. Unutilized left over textile fabric or textile material is allowed to be cleared into DTA on payment of duty leviable at the time of import but for the exemption on transaction value as if the goods have been manufactured in that unit. Exemption of duty/tax on goods imported under Notification No. 52/2003-Customs dated 31.03.2003 is also denied on account of breach of various conditions of EOU scheme. Once EOU is required to pay back BCD for which exemption was claimed and allowed under Notification No. 52/2003-Customs dated 31.03.2003 at the time of import then exemption of AIDC, if availed, in all such situations shall also be denied. Thus, EOU shall be required to pay AIDC in the manner of payment of BCD against the goods imported under exemption Notification No. 52/2003-Customs dated 31.03.2003 under various situations.

2. EOU/STP/EHTP are required to maintain and also submit digital copy of Form-A to Circular no. 35/2016-Customs dated 29.07.2016, by 10th of month to proper officer, which captures the summary of receipt, removal, returns and balance of imported goods under Notification No. 52/2003-Customs dated 31.03.2003. Copy of Quarterly Performance Report and Annual Performance Reports [QPR/APR] are also required to be submitted to jurisdictional AC/DC of Customs as mandated by DGFT Public Notice no. 36/2015-2020 dated 04.09.218. Though QPR/APR contain details of various activities including revenue contribution by EOUs but these are reflected in consolidated manner and these reports may be a monitoring tool for departmental officers with limitations. However, for effective and monthly monitoring of exemption of duty/taxes availed under Notification No. 52/2003-Customs dated 31.03.2003, the said Form 'A' is amended and revised Form 'A' is annexed herewith. Circular no. 35/2016-Customs dated 29.07.2016 may be treated as amended to above extent.

3. Difficulties, if any, may be brought to the notice of Board.

4. Hindi version will follow.

Encl: - Revised Form 'A'

[F. No. DGEP/SEZ/09/2017 (Part III)]

(Saroj Kumar Behera)
Additional Director

FORM -A
Form to be maintained by EOU/STPI/EHTP for the receipt, storage, processing and removal of goods.
(as per Circular 07 / 2021 -Customs dated 22.02 .2021)

Name of EOU and address:

GST/Central Excise Registration No:

Range/Circle ______Division_______ Commissionerate____________

Receipts
Bill of
Entry
No. and
date, if
applicable
Customs
Station of
import, if
applicable
Code and
address of
Warehouse
from where
received
(only
in cases
goods are
procured
from public
or private
warehouse)
Name &
Address of
EoU from
where
goods are
received, if
applicable
Others
(in case of
any
other source
of
procurement)
Details of
B-17 Bond/Amount
debited
Descripti-
on
of goods
Invoice
No.
Procurement
Certificate
No. and
date

Date of
intimation
filed under
Rule 5 of
IGCR,2017
Unit, Weight
And quantity
Value Duty
assessed
Registration
No. of
means of
transport
Date and
time of
receipt
1
2
3
4
5
6
7
8
9
10
11
12
13
14

 

Removal for processing (The goods removed for processing shall be accounted in a manner that enables the verification of input-output norms, extent of waste, scrap generated etc)
Date
and time
of
removal
Quantity
cleared
Value Duty
involved
Physical
Exports
Deemed
Export under
Para 6.9 of
FTP
DTA clearances of finished goods
Waste, scrap etc. cleared
Qty Value Qty. Value Qty. Value
Amount paid at the time of clearance
Qty. Value Customs
Duty paid
BCD
foregone
on inputs
AIDC
foregone
on inputs
Anti-dumping
duty
foregone
on inputs
Safeguard
Duty
foregone
on inputs
Other
Cess/
Surcharge
paid
Interest/
Misc.
payments
Total of
col. 25
to 30
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

 

Other removals
Return to unit
Balance in stock
Remarks
Purpose of
removal
Date and
time
Quantity Value Duty Details of document
under which removed
(No. and date)
Purpose of
return
Date and
time
Quantity Value Duty involved Details of document
under which returned
(No. and date)
Quantity Value  
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49

Note:- For column 19 to 34 consolidated figures may be provided.

 

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
ANTI-SMUGGLING UNIT
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
NEW DELHI

CIRCULAR NO

06/2021-Customs; Dated: February 22, 2021

To,

All Principal Chief/Chief Commissioners of Customs,

All Principal Chief/Chief Commissioners of Customs(P),

All Principal Chief/Chief Commissioners of Customs & CGST,

Webmaster, CBIC.

Subject: Policy and Guidelines for setting up of Inland Container Depots (ICDs), Container Freight Stations (CFSs) and Air Freight Stations (AFSs)-Reg.

The Board had issued new set of policy and guidelines for setting up of ICDs/CFSs/AFSs vide Circular No. 50/2020-Customs dated 05.11.2020. The said circular laid down various criterion for new approvals, applications and procedures for approval, post approval obligation, regulatory & other compliances, and performance monitoring etc. Post issuance of the Circular, the Inter -Ministerial Committee (IMC) was further reconstituted vide Board’s order dated 18.01.2021.

2. Para 5.1.5 of the said circular states that the IMC meeting will be held twice a year. It also prescribed that the jurisdictional Commissioners of Customs and the Members of IMC will furnish their comments/recommendations on the applications received in this regard within 30 days. However, there was no cut-off date prescribed for submitting the applications and there were instances where applications were received just prior to the IMC meeting. Late submission of application poses two challenges. Firstly, there is no sufficient time for the jurisdictional Commissioners and IMC Members to examine the applications and to furnish their comments on the same. Secondly, if an application is not placed in time before the scheduled IMC meeting, the applicant needs to wait for another 06 months for the next IMC meeting which in turn hampers the investment activities of the stakeholders particularly in the logistics sector.

3. Further, on scrutiny of the applications and the comments/ recommendations as forwarded by the jurisdictional Commissioners, it has been noticed that there is no objective evaluation of the proposal and many a times the recommendation of the jurisdictional Commissioner does not provide a holistic picture of the feasibility of the proposal. Accordingly, it is felt that there is a need for structured reporting system which will not only minimize the ambiguity but may also help in automation and online processing in the future.

4. Accordingly, the following further guidelines are being prescribed:

i. The IMC meeting would be held on quarterly basis as per the following schedule-

Quarter
Cut-off date for receipt of application
Receipt of comments from IMC and Customs formations
Date of issuance of Meeting Notice
Date of Meeting
January- March By 30th of preceding November By 20th of preceding December By 25th of preceding December 2nd Tuesday of January
April-June By 28th of preceding February By 20th of preceding March By 25th of preceding March 2nd Tuesday of April
July- September By 31st of preceding May By 20th preceding June By 25th of preceding June 2nd Tuesday of July
October- December By 31 st of preceding August By 20th of preceding September By 25th of preceding September 2nd Tuesday of October

(in case the 02nd Tuesday of the respective month is a holiday, the next working day will be considered as date of IMC meeting)

ii. All the jurisdictional Principal Commissioners/Commissioners may forward their comments/recommendations on the application for setting of ICDs/CFSs/AFSs as per Annexure-A within the time as stipulated above.

5. The above amendment may be circulated amongst the stakeholders and public at large and the field formations may suitably be sensitized.

6. In the Circular No. 50/2020-Customs dated 05.11.2020, any aspect which is inconsistent with this circular shall be brought to notice for suitable modification. In case of a conflict, the provisions of this circular will prevail.

7. Any difficulties in the implementation of these guidelines may be brought to the notice of the Board immediately.

[F.No. 394/29/2020-Cus(AS)]

(Sharad Sriwastava)
Director (Anti-Smuggling)

Annexure-A

(to CBIC Circular No. 06/2021-Customs)

Format of reporting for Setting up of an Inland Container Depots/Container Freight Stations/Air Freight Stations by the jurisdictional Principal Commissioner/ Commissioner.

1 Name of the Zone  
2 Name of the entity  
3 Entity type:

- PSU

- Public Ltd.

- Pvt. Ltd.

- Others

4 State of facility proposed  
5 Status of State's infrastructure (as per LEAPP score)  
6 Application for (Mark whichever applicable)

- ICD

- CFS

- AFS

- CFS to ICD

- Change of location of an existing ICD/CFS/AFS

7 Geographical Zone of facility (Mark whichever applicable)

- Green

- Blue

- Red

8 Authorized Economic Operator-Logistics Operator Status Holder Yes/No (If yes, please provide details)
9

Distance from Port

[As per Para 4.1.3 of Circular 50/2020- Customs, the development of ICDs within 200kms of a connecting/nearest serving seaport shall be discouraged.]

 
10

Distance from nearest ICD

[As per Para 4.1.4 of Circular 50/2020- Customs, no Greenfield ICD shall be permitted to be established within 100 kms distance from existing ICD.]

 
11

Nearest Rail linked ICD

As per Para 4.1.8 of Circular 50/2020- Customs, no approval for Greenfield ICD shall be accorded with more than one ICD directly connected to railway corridors/ DFCs.]

 
12. Whether CFS linked to ICD ? [As per Para 4.1.10 of Circular 50/2020-Customs, no CFS shall be set up which is linked to an ICD.]  
13. Number of existing ICDs/CFSs and names  
14. Installed capacity of existing ICDs/CFSs in TEUs
Name of the facility Capacity in TEUs
   
  Current capacity utilization of existing ICDs/CFSs in TEUs
Name of the facility Capacity Utilization in TEUs for past 03 years
  Export Import Total
16 Future projection of traffic in region for the next 05 years
Year Capacity in TEUs
17 Manpower availability  
18 In terms of Circular No. 02/21-Customs dated 19.01.2021, the sanction for cost recovery posts shall be obtained before commencement of operations. Despite posts being sanctioned, till the vacant posts are filled up, whether the formation can deploy manpower from the existing working strength should be clearly mentioned /  
19

Land Availability

[As per Para 4.3.1 of Circular 50/2020-Customs, minimum area required for ICD is 07 hectares , 02 hectares for CFS and 1000 sq. yard for AFS.] 1 hectare = 2.47 acre

The proposed facility meets/doesn't meet the requirement. Remarks if any:
20

Ownership of land

[As per Para 4.3.2 of Circular 50/2020-Customs, the land should either be owned for leased for a period of 30 years.]

 
21

Comments on prior experience

[As per Para 4.4.2 of Circular 50/2020-Customs, the applicant must have a prior experience of operating as CCSP or should have other trans-border logistics experience.)

The applicant meets/doesn't meet the requirement. Remarks if any:
22 Comments on the Detailed Project Report: Whether the claims made by the applicant in support of their application in the DPR are correct ? (Detailed observation may be given)
23 Any exception to be made for considering the application? If so the details thereof.  
24 Any other notable remarks  
25 Recommendation Recommended/Not Recommended

Note: All the items shall be filled up objectively; no item shall be left blank and entries like 'no comments' shall be avoided.

Signature of Pr. Commissioner/Commissioner

Name:

Commissionerate:

Counter Signed by

Signature of the Pr. Chief/Chief Commissioner

Name:

Zone: