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GOVERNMENT OF INDIA
7/2021-Customs, Dated: February 22, 2021
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)
Name of EOU and address:
GST/Central Excise Registration No:
Range/Circle ______Division_______ Commissionerate____________
Note:- For column 19 to 34 consolidated figures may be provided.
GOVERNMENT OF INDIA
06/2021-Customs; Dated: February 22, 2021
All Principal Chief/Chief Commissioners of Customs,
All Principal Chief/Chief Commissioners of Customs(P),
All Principal Chief/Chief Commissioners of Customs & CGST,
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:
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.
(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.
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
Counter Signed by
Signature of the Pr. Chief/Chief Commissioner