Importation, Exportation and Transportation of goods

Question 1

What are the different circumstances under which provisional assessment under section 18 can be resorted to?

Answer 1

(a) where the importer or exporter is unable to make self-assessment under sub-section (1) of section 17 and makes a request in writing to the proper officer for assessment; or
(b) where the proper officer deems it necessary to subject any imported goods or export goods to any chemical or other test; or
(c) where the importer or exporter has produced all the necessary documents and furnished full information, but the proper officer deems it necessary to make further enquiry; or
(d) where necessary documents have not been produced or information has not been furnished and the proper officer deems it necessary to make further enquiry.

Question 2

What is the liability for payment of interest on provisional assessment or re-assessment under section 18 and also the refund provisions under the provisions of section 18 accordingly?

Answer 2

The importer or exporter shall be liable to pay interest, on any amount payable to the Central Government, consequent to the final assessment order or re-assessment order.

The interest shall be payable at the rate fixed by the Central Government under section 28AA. This interest shall be payable from the first day of the month in which the duty is provisionally assessed till the date of payment thereof [Sub-section 3] - The rate specified under this section is 15%.

Subject to sub-section (5), if any refundable amount referred to in clause (a) of sub-section (2) is not refunded under that sub-section within three months from the date of assessment of duty finally or re-assessment of duty, as the case may be,

there shall be paid an interest on such unrefunded amount at such rate fixed by the Central Government under section 27A till the date of refund of such amount[Sub-section 4].

Question 3

What are the passenger baggage rules as per the provisions of section 79 of the customs act alongside the baggage rules, 1998?

Answer 3

The general duty-free baggage allowance of a passenger cannot be pooled with the general duty-free baggage allowance of any other passenger.

“Infant” means a child not more than two years of age;

“Resident” means a person holding a valid passport issued under the Passports Act, 1967 and normally residing in India;

“Tourist” means a person not normally resident in India, who enters India for a stay of not more than six months in the course of any twelve months period for legitimate non-immigrant purposes;

Personal effects” means things required for satisfying daily necessities but does not include jewellery.

It is important to note that the limit of 50,000 is in relation to per passenger and not all the baggage as a whole.

Question 4

What are the various goods which are mentioned in Annexure 1, 2 and 3 which are important in deciding whether or not to apply the threshold limits for the articles brought into India other than used personal effects or travel souvenir?

Answer 4

For rule 3 and 4, we have to apply only annexure one to the exception - that is threshold limits will not apply to annexure 1 alone, but will apply for 2 and 3.

For rule 6 - both annexure 1 and 2 are exception - that is threshold limits not to apply for the goods mentioned in 1 and 2, but will apply only for 3.

Question 5

What is the rule for jewellery allowance as per the provisions of rule 5?

Answer 5

Question 6

Are there any exceptions to the threshold limit of 50,000 or 15,000 for article brought into India as per rule 3,4,5 or 6?

Answer 6

One laptop computer when imported into India by a passenger of the age of 18 years or above (other than member of crew) as baggage is exempt from whole of the customs duty[Notification No. 11/2004 Cus. dated 08.01.2004] - This is irrespective of the value of the laptop imported.

Question 7

What is the relevant rate of duty and tariff valuation applicable to the baggage as per the provisions of section 78?

Answer 7

rate of and valuation in force on the date on which a declaration is made in respect of such baggage under section 77 - Therefore, the relevant date for determining rate of duty is the date of filing baggage declaration under section 77.

Rate of duty on baggage is 35% ad valorem +10% SWS will be added to this

This rate of duty is not applicable to fire arms, cartridges of fire arms exceeding 50, cigarettes, cigars or tobacco in excess of the quantity prescribed for importation free of duty under the relevant baggage rules and goods imported through a courier service - These are the goods covered under annexure 1, and these are charged at 100% rate instead of 35%.

Question 8

What are the provisions of section 31 in relation to the imported goods which should not be unloaded from the vessel until the grant of entry inwards by the proper officer?

Answer 8

• The application of this provision allowing entry inwards by the proper officer for unloading of goods is applicable only for vessels and not for aircrafts or vehicles.
• Section 31(2) provides that Entry Inwards shall not be given until the arrival manifest or import manifest has been delivered.
• Grant of Entry Inwards is an acknowledgement of the fact that Customs Department is ready to supervise the unloading of the cargo, and is prepared to assess the goods to duty.

Question 9

What are the provisions of section 31 in relation to determination of the date for taking the rate of duty for the purposes of assessment of import duties?

Answer 9

Entry inwards date is crucial for the calculation of applicable rate of duty whenever bill of entry has been filed in advance.

In case Bill of entry is filed before arrival of aircraft or vehicle or before entry inward for vessel, the relevant date of determination of rate of duty and tariff valuation shall be date of arrival or entry inward as the case may be - (Refer Section 15 of the Customs Act)

Question 10

What are the provisions for self assessment of goods under section 17?

Answer 10

Question 11

What are the restrictions on goods being water borne as per the provisions of section 35 of the act? and what is the meaning of a boat note as per this section?

Answer 11

In certain circumstances (like size of vessel, hazardous nature of cargo, etc.) the vessel cannot be berthed at the port. The cargo is ferried from or to the ships anchored at mid-sea to the port in boats, otherwise known as lighters.

no imported goods shall be water borne for being loaded in any vessel, and no export goods which are not accompanied by a shipping bill, shall be water borne for being shipped unless the goods are accompanied by a boat note in the prescribed form.

However, the board may, by notification give general permission and the proper officer may in any particular case, give special permission, for any goods or any class of goods to be water borne without being accompanied by a boat-note.

Question 12

What are certain other controls which are exercised on the conveyances and the loading/ unloading of goods as per the provisions of section 35?

Answer 12

Question 13

What are the provisions in relation to transit and transshipment of goods as per the provisions of section 53 and 54 of the act?

Answer 13

Question 14

What are the main points of differences between transit and transshipment of goods under the provisions of section 53 and 54 of the act?

Answer 14

Question 15

What are the provisions relating to transfer of residence as per rule 6 of section 79 in relation to the baggage rules specified?

Answer 15

Question 16

What are the other miscellaneous rules as per section 79 of the baggage rules relating to currency, unaccompanied baggage and crew baggage?

Answer 16

Question 17

What is the Relevant date for Rate of duty and tariff valuation in respect of goods imported or exported by post [Section 83]?

Answer 17

The section here is similar to section 15 of customs valuation and the similar method has to be applied here as well.

Question 18

What are the provisions of section 29 in relation to arrival of vessels and aircrafts in India? what is the specific requirement of the act and exceptions when the same cannot be fulfilled?

Answer 18

Question 19

What is the meaning of entry inwards and entry outwards with reference to the customs law as per the provisions of section 31 and section 39 of the act?

Answer 19

Section 31 - Already seen in another flashcards, will be considered to be unloaded only when the grant of entry inwards is passed.

Section 39 - export goods are not to be loaded on vessel until entry outwards is granted - Other than baggage and mail bags

restriction is for vessels and not for aircraft and vehicles.

Question 20

Which class of importers is required to pay customs duty electronically? Name the dedicated payment gateway set up by CBIC to use E-payment facility easily by the exporter?

Answer 20

following classes of importers who have to pay customs duty electronically, namely:-

(i) Importers registered under Authorized Economic Operator;
(ii) Importers paying customs duty of `10,000or more per bill of entry
The Board has set up a dedicated payment gateway called, ‘ICEGATE’ through which the payments are to be made.
The importer need not produce any proof of payment for the clearance of goods in case of e-payment.

Question 21

Can customs audit under section 99A cover a person who is not an exporter or an importer?

Answer 21

a separate section 99A is introduced authorizing the proper officer to audit the assessment that has already been conducted at the time of customs clearance.

Such audit is permitted to the carried out swiftly either at the premises of the auditee or at the office of the proper officer.

It may be noted that ‘auditee’ is defined in this section to include not only the principal (importer or exporter) but also persons concerning themselves dealing with goods attracting section 12 of Customs Act.

includes an importer or exporter or custodian approved under section 45 or licensee of a warehouse and any other person concerned directly or indirectly in clearing, forwarding, stocking, carrying, selling or purchasing of imported goods or export goods or dutiable goods”

Question 22

What is the definition of foreign going vessel or aircraft under section 2(21)?

Answer 22

means any vessel or aircraft for the time being engaged in the carriage of goods or passengers between any port or airport in India and any port or airport outside India, whether touching any intermediate port or airport in India or not

includes-

• any naval vessel of any foreign Government taking part in any naval exercise;
• any vessel engaged in fishing or any other operations outside the territorial waters of India;
• any vessel or aircraft proceeding to a place outside India for any purpose whatsoever.

For this purpose, proceeding to a place outside India means outside the territorial waters of India, which is beyond 12 Nautical miles from the baseline as per the definition of India under the act.

Question 23

What is the procedure prescribed in the customs act, 1962 in case of goods not cleared, warehoused or transshipped within 30 days after unloading of the same?

Answer 23

Question 24

What is the meaning of export general manifest and what details shall it contain? what are the procedures in relation to export general manifest - Full nature of all permutations and combinations?

Answer 24

Question 25

What are the provisions regarding temporary detention of baggage under section 80?

Answer 25

Question 26

What are the permissible time limits for the various documents mentioned aforesaid?

1. For filing of bill of entry
2. For paying of the assessed duty
3. For delivery of arrival manifest or import manifest / report and departure manifest or export manifest / report

Answer 26

1. 30 days prior to arrival, & not later than the day after the day of arrival.
2. day of filing bill of entry (self-assessment) or within a day of receiving re-assessed bill of entry. Also see the aforesaid dates when it comes to deferred payment of taxes in certain situations.
3. See Image

Question 27

What are the brief provisions relating to delivery of arrival manifest or import manifest or export manifest under section 30?

Answer 27

Arrival manifest or import manifest or import report is a detailed information to customs about goods in the vessels/aircrafts which have been brought in at any port/airport for unloading at that particular port/international airport.

Imports via land route require filing of declaration (called ‘Import Report’).

Goods involved in an export may also be carried in the import conveyance (vessel or other), without such goods being delivered in India.

Similar provision for including details of ‘imported goods’ is required by section 41 in export manifest to be filed by person-in-charge of a conveyance carrying export goods before departure of conveyance.

See time limits in a different flash card

Question 28

What is the declaration that needs to be made by the owner of the baggage under section 77?

Answer 28

Under this section, the owner of the baggage has to make a declaration of its contents to the proper officer of customs, for the purpose of clearing it. This is known as Baggage Declaration Form.
Declaring packing list is sufficient declaration.

Question 29

What are the various provisions and procedures regarding the preparation and filing of bill of entry as per section 46 of customs act, 1962?

Answer 29

Time limits are mentioned in another flash card accordingly.

Question 30

Under what situations the amount of duty and interest refundable under section 18 of the customs act, 1962 shall be paid to the importer/exporter instead of being credited to the consumer welfare fund?

Answer 30

Question 31

What is the procedure for clearance of goods imported by post as per the provisions of section 24 and 24A of the customs act?

Answer 31

In the case of goods imported by post the agency for the carriage of goods is the Government of India be it through sea, air or land. The control of the Customs Department is only on goods, whether imported or exported
(i) on which there is a duty; and
(ii) which are subject to prohibition or restriction under the Customs Act or any other law for the time being in force.
The customs have no concern over other goods or other mail.

Question 32

What are the various important definitions which are mentioned under this act and which are considered to be of primary importance?

Answer 32

See and read thoroughly all the definitions from Para 3, since all of them are new in this scenario and were not tested previously - See page 5.2 - 5.7

Question 33

What is the objective of the facility under deferred payment of import duty rules, 2016 were framed under?

Answer 33

Clear first-Pay later’ i.e., deferred duty payment is a mechanism for delinking duty payment and customs clearance. The aim is to have a seamless wharf to warehouse transit in order to facilitate just-in-time manufacturing

Question 34

Who is the person eligible to avail the scheme under deferred payment of import duty rules, 2016?

Answer 34

In this respect, Central Government has permitted importers certified under Authorized Economic Operator program as AEO (Tier-Two) and AEO (Tier-Three) to make deferred payment of import duty (eligible importers).AEO means Authorized Economic Operator certified by the Directorate General of Performance Management under CBIC.

Question 35

What are the due dates for payment of duty under the facility of deferred payment of import duty rules, 2016?

Answer 35

Question 36

What are the circumstances under which the deferred payment facility may not be available?

Answer 36

If there is default in payment of duty by due date more than once in three consecutive months, this facility of deferred payment will not be allowed unless the duty with interest has been paid in full.
The benefit of deferred payment of duty will not be available in respect of the goods which have not been assessed or not declared by the importer in the entry.