Chap 2 - Types of Duty Flashcards
In accordance with the provisions of section 9AA of the customs tariff act, 1975, what are certain provisions regarding refund of anti dumping duty?
Section 9AA provides that where upon determination by an officer authorised in this behalf by the Central Government under clause (ii) of sub-section (2), an importer proves to the satisfaction of the Central Government that he has paid anti-dumping duty imposed under sub-section (1) of section 9A on any article, in excess of the actual margin of dumping in relation to such article.
the Central Government shall, as soon as may be, reduce such anti-dumping duty as is in excess of actual margin of dumping so determined, in relation to such article or such importer, and such importer shall be entitled to refund of such excess duty.
What are the provisions of provisional anti dumping duty as per sub section 2 of section 9A of the act?
When determination of the normal value and margin of dumping in relation to any article in accordance with this section and rules made there under is pending, the Central Government may impose anti-dumping duty on the basis of provisional estimate of such value and margin.
If the provisional duty is higher than the margin finally determined, then the Central Government shall reduce the anti-dumping duty and shall also refund the excess duty collected[Sub-section (2)].
Are the above two refund provisions in relation to anti dumping duty( 9AA and 9A(2) mutually exclusive or can they be applied together while applying for any refunds?
However, the importer will not be entitled for refund of provisional anti-dumping duty under section 9AA as the same is refundable under section 9A(2) of the said Act.
Refund of excess anti-dumping duty paid is subject to provisions of unjust enrichment – Automotive Tyre Manufacturers Association v. Designated Authority 2011 (263) ELT 481 (SC).
What are the provisions of section 9A(1A) of CTA, 1975 regarding the ways that constitute circumvention of anti dumping duty imposed on an article which may warrant action by the central government?
Where the Central Government, on such inquiry as it may consider necessary, is of the opinion that circumvention of anti-dumping duty has taken place, by either of the following ways:
(i) by altering the description or name or composition of the article subject to such anti-dumping duty
(ii) by import of such article in an unassembled or disassembled form
(iii) by changing the country of its origin or export or
(iv) in any other manner, whereby the anti-dumping duty so imposed is rendered ineffective
it may extend the anti-dumping duty to such article or an article originating in or exported from such country, as the case may be[Sub-section (1A)].
When shall the safeguard measures under section 8B of the customs tariff act, 1975 be not imposed? AKA exemption from safeguard measures?
(a) Articles from developing country: Articles originating from developing country, so long as the share of imports of that article from that country does not exceed 3% of the total imports of that article into India.
(b) Articles originating from more than one developing country: Articles originating from more than one developing country, so long as the aggregate of imports from developing countries each with less than 3% import share taken together does not exceed 9% of the total imports of that article into India.
- *Imports by 100% EOU or units in a Special Economic Zone:** Safeguard measures shall not apply to articles imported by a 100% EOU/SEZ unit unless -
(i) specifically made applicable; or
(ii) the article imported is either cleared as such into DTA or used in the manufacture of any goods that are cleared into DTA and in such cases safeguard measures shall be applied on that portion of the article so cleared or so used as was leviable when it was imported into India.
What are the conditions required to be fulfilled by the importer to make the imported goods eligible for preferential rate of duty prescribed under section 25 of the customs act, 1962?
The Government may by notification under section 25 of the Customs Act prescribe preferential rate of duty in respect of imports from certain preferential areas.
The importer has to fulfill the following conditions to get the benefit of preferential rate of duty:
(a) At the time of importation, he should make a specific claim for the preferential rate
(b) He should also claim that the goods are produced or manufactured in such preferential area.
(c) The area should be notified under section 4(3) of the Customs Tariff Act to be a preferential area.
(d) The origin of the goods shall be determined in accordance with the rules made under section 4(2) of the Customs Tariff Act. If the importer fails to discharge the above, the goods shall be liable to standard rate of duty.
Why is determination of origin is important to allow concessional rate of duty under section 25?
- Generally, as per the rules (a) if the goods are un-manufactured, it should be grown or produced in that area.
- b) If it is fully manufactured in that country, it should be manufactured from material produced or with un-manufactured materials from that country.
- (c) if it is partially manufactured in that country, final process should be completed in that country and at least specified percentage of expenditure on material or labour should be in that country.
What are the provisions on emergency power to impose or enhance import duties under section 8A of the customs tariff act, 1975?
The Central Government may impose or enhance import duties by making amendment to the First Schedule by issue of a notification in the Official Gazette.
- *If the following conditions are satisfied, the Central Government may provide for the enhancement of the import duty.**
a. The goods should be specified in the First Schedule.
b. The Central Government is satisfied that circumstances exist, which render it necessary for the enhancement of import duties.
We have to read this along with the provisions for export duties under the second schedule wherein it is specified that in the first condition, the goods may or may not be specified in the second schedule.
What is the manner of computation of social welfare surcharge on imported goods as per section 12 of the customs act, 1962?
Social welfare surcharge(SWS) @ 10% is levied in lieu of education cesses for providing and financing education, health and social security.
any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs. However, following duties shall be excluded for computing this cess:
(a) Safeguard measures under section 8B of the Customs Tariff Act, 1975
(b) Countervailing duty under section 9 of the Customs Tariff Act, 1975
(c) Anti-dumping duty under section 9A of the Customs Tariff Act, 1975
(d) Social welfare surcharge itself on imported goods.
In simpler terms, SWS is capped at 10% of the BCD levied and collected on goods imported into India.
What are the basic differences between protective duties and safeguard duties that are levied as per section 6 and section 8B of the customs tariff act?
Protective duties: are intended to give protection to indigenous industries. If resort to protective duties is not made there could be a glut of cheap imported articles in the market making the indigenous goods unattractive.
Safeguard duties - Central Government after conducting enquiry can impose the safeguard measures if it is satisfied that:
(a) Any article is imported into India in increased quantities; and
(b) Such increased importation is causing or threatening to cause serious injury to domestic industry.
See extant provisions in 2.11 and 2.9 - Must to go through quickly the entire provision.
What is the nature of significance of imposing of anti dumping duty as per the provisions of customs tariff act, 1975?
Anti-dumping action can be taken only when there is an Indian industry which produces “like articles”
it is imposed on imports from a particular country.
anti-dumping duties higher than the margin of dumping cannot be imposed.
the Government is obliged to restrict the anti-dumping duty to the lower of the two i.e., dumping margin and the injury margin.
The anti-dumping duty chargeable under this section is in addition to any other duty imposed under this Act or any other law for the time being in force.
What is the meaning of the term margin of dumping as per the provisions of section 9A?
In relation to an article, it means the difference between its export price and normal value. It is generally expressed as a percentage of the export price.
Export price: in relation to an article, means the price of an article exported from the exporting country or territory - This can also be a constructed export price where necessary.
Normal value: in relation to an article, means comparable price, in the ordinary course of trade, for the like article when destined for consumption in the exporting country or territory as determined in accordance with the rules.
What is the meaning of the term injury margin as per the provisions of anti dumping duty as per section 9A?
Injury margin is the margin adequate to remove the injury to the domestic industry. It is the difference between the Fair Selling Price [Non-Injurious Price (NIP)]due to the Domestic Industry and the Landed Value of the dumped imports.
What is the meaning of fair selling price and landed value as per the provisions of anti dumping duty as per section 9A?
Fair selling price - is that level of price, which the industry is, expected to have charged under normal circumstances in the Indian market during the period defined.
enabled reasonable recovery of cost of production and profit after nullifying adverse impact of those factors of production.
In other words, it is the fair selling price of a product for the domestic industry.
Landed Value:
is taken as the assessable value under the Customs Act and the applicable basic customs duties except CVD, SAD and special duties
What are the provisions of imposition of anti dumping duties retrospectively as per section 9A?
The retrospective date from which the duty is payable shall not be beyond 90 days from the date of such notification.
Conditions to be satisfied:
There is a history of dumping which caused injury or that the importer was, or should have been, aware that the exporter practices dumping and that such dumping would cause injury; and
The injury is caused by massive dumping of an article imported in a relatively short time which in the light of the timing and the volume of the imported article dumped and other circumstances is likely to seriously undermine the remedial effect of the anti-dumping duty liable to be levied.
