Download Circular No.01 / 2013- Customs Dated 01-Jan-2013 :Classification of Cordless Infrared Devices for the Remote Control

Download Circular No.01 / 2013- Customs Dated 01-Jan-2013 :Classification of Cordless Infrared Devices for the Remote Control

Circular No.01 / 2013- Customs

F.No. 528/48/2012-STO (TU)
Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

229-A, North Block, New Delhi
1st January, 2013

To

All Chief Commissioners of Customs/ Customs (Prev.)/ C&CE, All Directors General of CBEC,

All Commissioners of Customs / Customs (Prev.) / C&CE
All Commissioners of Customs & Central Excise (Appeals).

Sir / Madam,

Subject:  Classification of Cordless Infrared Devices for the Remote Control – reg.
The issue of classification of cordless infrared devices for the remote control was taken up for discussion in the May, 2012 Mumbai Conference of Chief Commissioners of Customs and Directors General. The entries in National Import Data Base (NIDB) in tariff item 84159000 (Parts of heading 8415), 85299090 (Part of TV, etc), indicated that cordless infrared devices for the remote control is often being treated as a part of the main device / equipment, while the entry in heading 85437099 – “Other”, under the heading 8543 provided that it is treated as, “electrical machines and apparatus having individual functions, not specified or including elsewhere in this chapter”. During the conference it was decided to further examine this issue in the Board.

2. Accordingly, this issue was examined in the Board. It emerged that when cordless infrared devices for the remote control are imported along with the main equipment as a set, then the “essential character rule” of GRI 3(b)  has  to  be  applied  in  order  to  determine  under  which  single  heading  the  set  had  to  be classified. However, when this product is presented separately, then the classification is to be determined by application of the General Rule for the Interpretation (GRIs) of the First Schedule to the Customs Tariff Act (CTA), 1975. GRI 1 requires that in classifying articles, for legal purpose it shall be determined according to the terms of the headings and any relative Section or Chapter Notes,..”. Hence, all relevant legal texts must be considered.

Chapter Note 1(m) to Chapter 95 reads as:

“Pumps for liquids (heading 84.13), filtering or purifying machinery and apparatus for liquids or gases (heading 84.21), electric motors (heading 85.01), electric transformers (heading 85.04), discs, tapes, solid-state non-volatile storage devices, “smart cards” and other media for the recording of sound or of other phenomena, whether or not recorded (heading 85.23), radio remote control apparatus (heading 85.26) or cordless infrared remote control devices (heading 85.43);”. Heading 8543 provides for “Electrical … apparatus, having individual functions, not specified or included elsewhere … “.

Chapter Note 7 to Chapter 85 reads as:“Heading 8537 does not include cordless infrared devices for the remote control of television receivers or other electrical equipment (heading 8543).

3.The Explanatory Notes to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the CTA, 1975 by offering guidance in understanding the scope of the headings and the GRIs, and for the harmonised Customs Tariff Heading 85.43, it states that, “the heading includes, “Cordless infrared devices for the remote control of television receivers, video recorders, or other electrical equipment”. In addition, the exclusion clause in the Explanatory Notes to Chapter 8537 provides that the heading excludes, “Cordless infrared devices for the remote control of television receivers, video recorders, or other electrical equipment (8543)”.

4 In view of the aforesaid, the Board of the considered view that:

(a) When cordless infrared devices for the remote control are presented in a set put up for retail sale, that is, they are put up in a manner suitable for sale directly to users without repacking, along with principal / main device with which they are to be used, they shall be classified along with the principal / main device by application of GRI 3(b) and 6.

(b) In cases where cordless infrared devices for the remote control are presented separately, they shall be classified under heading 8543, sub-heading 8543.70, by application of GRI 1 and 6

5.Accordingly, all pending assessments, if any, may be finalized and suitable instructions may be given to

the field formations.

5.  Difficulties, if any, faced in the implementation of this circular, may be immediately brought to the notice of

the Board.

Yours faithfully,

(Subodh Singh),

OSD (Customs), Tariff Unit
Fax: 011 – 23092173

Internal circulation – As usual.

Download Circular No.17 / 2013 – Customs Dated 11th April, 2013: Classification of Octagonal Steel Columns for Lamp Posts and like products

Download Circular No.17 / 2013 – Customs Dated 11th April, 2013: Classification of Octagonal Steel Columns for Lamp Posts and like products

Circular No.17 / 2013 – Customs

F.No. 528/94/2012-STO (TU)
Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs
Tariff Unit

229-A, North Block, New Delhi
11th April, 2013

To

All Chief Commissioners of Customs/ Customs (Prev.)/ C&CE, All Directors General of CBEC,

All Commissioners of Customs / Customs (Prev.) / C&CE
All Commissioners of Customs & Central Excise (Appeals).

Sir / Madam,

Subject: Classification of Octagonal Steel Columns for Lamp Posts and like products –
regarding

It has come to the notice of the Board that there is lack of uniformity in classification of Steel Columns, poles, towers and articles of like nature under the Customs Tariff Act (CTA), 1975. In order to ensure uniformity in classification of similar / identical goods the issue was examined in Board.

2. Brief description of the goods as an illustration is given below:

Octagonal steel columns, measuring between 4 and 9 metres, presented unassembled with the following elements:

– tubular brackets, 60 mm in diameter, comprising one or more branches equipped with a fixing or fastening device for the lighting sources,

– anchor bolts to attach these columns to the ground, and,

– a pack of accessories to assemble the constituent parts (bolts, nuts, washers).

The columns and their elements are not fitted with electrical devices or with a lighting source.

3. Pursuant to the description of the above mentioned goods, it is inferred that the main two headings which merit consideration for the classification of products at issue is: either heading 94.05 as parts of lamps or heading 73.08 covering metal structures. The other headings which may also be considered for the classification are:

Headings 73.04, 73.05 or 73.06 as tubes and pipes of iron or steel;

Heading 73.08 as structures of iron or steel;

Heading 73.26 as other articles of iron or steel; and

Heading 94.05 as parts of lamps.

4. The classification of the products in question as tubes and pipes is ruled out sincetubes and pipes or other hollow profiles which are made up into specific identifiable articlesor parts of articles are excluded from classification as tubes or pipes, cf. exclusions (f) toheading  73.04,   (c)  to  heading   73.05  and   (f)  to  heading   73.06  in  the  respective  HS Explanatory Notes.

5. The classification of the poles and columns in residual heading 73.26 covering “other
articles of iron or steel” is also be ruled out since heading 73.26 only covers products which
are not specified or included in a more specific heading of Chapters 72, 73, 82 or 83 or
elsewhere in the Nomenclature (the General Explanatory Note to Chapter 73). If there are
more specific headings for the classification of the products in question, for instance in this
case under heading 73.08 (iron or steel structures) or heading 94.05 (lamps and lighting
fittings and parts thereof), then entry in heading 73.26 can not be considered.

6.         The view that certain types of lamp posts (for outdoor lighting) without lanterns could
be classified in subheading 9405.99 as “other parts of lamps or lighting fittings” is not correct
since these poles and columns for out door lighting purposes are not fitted with electrical
devices and lanterns so as to be considered as parts of lamps of lighting fittings of heading

94.05. The mere presence of a flange plate, a hole in the centre of the flange plate, an inspection door and a compartment fitted with an earthing lug and an electrical gear component mounting strip, does not take such products out of the ambit of heading 73.08, as the poles and columns at issue are more specifically described in heading 73.08, which refers to “towers and lattice masts, beams, channels, truss rod, tubular steel poles for electric transmission, pillars and columns” in the heading text. This issue of classification of “Octagonal Steel Columns for Lamp Posts” was also deliberated by the World Customs Organization  Harmonised  System  Committee  and  the  Amendment  to  Compendium  of Classification Opinions reflects the decisions taken by the 46th Session (September 2010) to classify the articles at issue in harmonised heading 7308

7.         In view of the foregoing, it is clarified that the appropriate heading for classification of “octagonal steel columns for lamp posts”, as steel posts for outdoor lighting purposes (public street lighting) and like products is in heading 73.08, as steel structures, and more precisely in the subheading 7308.90, tariff item 73089090, by the application of the General Rules for the Interpretation (GRI) of Import Tariff, Rules 1 and 6.

Yours faithfully

(Subodh Singh),

OSD (Customs), Tariff Unit
Fax: 011 – 23092173

Internal circulation – As usual.

Download Circular No. 2/2013-Customs Dated 01-Jan-2013: Replacement of Fixed Deposit Receipts (FDRs) furnished in respect of provisional Mega or Ultra Mega Power Projects with Bank Guarantees (BGs)

Download Circular No. 2/2013-Customs Dated 01-Jan-2013: Replacement of Fixed Deposit Receipts (FDRs) furnished in respect of  provisional Mega or Ultra Mega Power Projects with Bank Guarantees (BGs)

Circular No. 2/2013-Customs

F.No.354/94/2011 -TRU
Government of India
Ministry of Finance (Department of Revenue)
Tax Research Unit

**

New Delhi, dated 1st January, 2013

To,

All Chief Commissioners of Customs.

All Chief Commissioners of Customs & Central Excise. All Chief Commissioners of Central Excise.

Sub:  Replacement of Fixed Deposit Receipts (FDRs) furnished in respect of
provisional Mega or Ultra Mega Power Projects with Bank Guarantees (BGs) – reg.

Sir / Madam,

I am directed to invite your attention to notification Nos. 12/2012-Customs (S.No.507) and 12/2012-Central Excise (S.No. 337 and 338), both dated 17-03-2012, granting exemption from customs and excise duties for provisional mega and ultra-mega power projects. One of the conditions specified for availing of the said exemption is that the importer/project developer furnishes a security in the form of a Fixed Deposit Receipt (FDR) or Bank Guarantee from a Scheduled Bank for a term of 36 months or more for an amount equal to the duty payable but for this exemption. This condition was amended w.e.f 27-06-2012 when the importer/ project developer was given the option of furnishing either FDR or Bank Guarantee from a Scheduled Bank

2. It has been represented by the Association of Power Producers that the developers should be allowed to secure release of the FDRs submitted by them prior to 27-06-2012 (i.e. date of DoR notifications) and the same should be substituted with Bank Guarantees. The matter has been examined by the Ministry. It has been felt that as long as a FDR was furnished as security, the FDR continued to operate as security. If an importer/ developer wishes to replace the FDR by a Bank Guarantee, the Bank Guarantee will operate from the date of replacement. Since under the amended notifications, FDR and Bank Guarantee are considered equally effective securities, it has been decided that there should not be any difficulty in allowing the importer/ project developer to replace the FDR with the Bank Guarantee.

3. It is requested that action may be taken accordingly to deal with such requests.

4. Difficulties, if any, faced in the implementation of the instructions may be brought to the

notice of the Ministry at an early date.

Yours faithfully,

(P.K.Mohanty)

Joint Secretary (TRU)
Telephone: 011 23092687

Download Circular No. 23/2013 – Customs Dated 24th June, 2013 :Introduction of Risk Management Systems (RMS) in Exports

Download Circular No. 23/2013 – Customs Dated 24th June, 2013 :Introduction of Risk Management Systems (RMS) in Exports

Circular No. 23/2013 – Customs

F.No.450/28/2011-Cus.IV
Government of India
Ministry of Finance Department of Revenue

Central Board of Excise and Customs

New Delhi, Dated 24th June, 2013

To

All Chief Commissioners of Customs/Customs (Prev)

All Chief Commissisoner of Customs and Central Excise All Commissioners of Customs/Customs (Prev)
All Commissioners of Customs and Central Excise
All Director Generals under CBEC

Sir/Madam

Sub: Introduction of Risk Management Systems (RMS) in Exports – regarding.

Attention is invited to the Board Circular No.43/2005-Cus dated 24.11.2005 whereby  Risk  Management  System  (RMS)  was  introduced  in  Imports  as  a  trade facilitation measure and for selective interdiction of high risk consignments for Customs control.

2. Implementation of RMS in Imports has been one of the most significant steps in the ongoing Business Process Re-engineering initiative of the department. In continuation of this initiative, the Board has now decided to introduce RMS in exports in Customs locations where the Indian Customs EDI Systems (ICES) is operational.  The RMS in exports will enable low risk consignments to be cleared based on self assessment of the declarations by exporters.  This will enable the department to enhance the level of facilitation and speed up the process of cargo clearance.  By expediting the clearance of compliant export cargo, the RMS for exports will contribute to reduction in dwell time, thereby achieving the desired objective of reducing the transaction cost in order to make the  business  internationally  competitive.  The  RMS  in  Exports  is  scheduled  for implementation from 15.07.2013 onwards.

3. The RMS for exports is developed with the following components (i) ensuring appropriate control measures for proper and speedy disbursement of drawback and other export incentives (ii) effective utilization of human resources, to match the workload with the resources available (iii) ensuring proper and expeditious implementation of existing control over export under the applicable Allied Acts and Rules.

4  With the introduction of the RMS in exports, the present practice of routine verification of self-assessment and examination of Shipping Bills will be discontinued and the focus will be on quality assessment, examination and post clearance audit (PCA) of Shipping Bills selected by the Risk Management System.

5. Shipping Bills filed electronically into ICES through the Service Centre or the ICEGATE will be processed by RMS.  The RMS will process the data through a series of steps/corridors and produce an electronic output for the ICES.  This output from RMS will determine the flow of the Shipping Bill in ICES i.e. whether the Shipping Bill will be taken up for Customs control (verification of self-assessment or examination or both) or to be given “Let Export Order” directly after payment of Export duty (if any) without any verification of self-assessment or examination. The RMS will also provide instructions for Appraising Officer/Superintendent, Examining Officer/Inspector or the Let Export Order (LEO) Officer, wherever necessary.  The decisions communicated by the RMS on the need for verification of self-assessment and/or examination and the appraising and examination instructions communicated by the RMS have be followed by the field formations.  It is possible that in a few cases, the field formations might decide to apply a particular treatment to the Shipping Bill which is at variance with the instructions received for the RMS owing to risks which are not factored in the RMS.  Such a course of action shall however be taken only with the prior approval of the jurisdictional Commissioner of Customs or an officer authorised by him fr this purpose, who shall not be below the rank of Addl./Joint Commissioner of Customs, and after recording the reason for the same. A brief remark on the reasons and particulars of Commissioner’s authorization should be made by the officer examining the goods in the departmental comments in the EDI system.

6. Board has decided to implement RMS in export in two phases.  In the first phase the RMS will process the data and provide the output to ICES only up to goods examination stage.  In the second phase, the RMS will also process the Shipping Bill data after the Export general Manifest (EGM) is filed electronically and provide output to CES for selection of shipping Bills for Drawback scrutiny and Post Clearance Audit (PCA).

7. With the implementation of export RMS, a Post Clearance Audit (PCA) function The objective of PCA is to monitor, maintain and enhance compliance levels, while reducing the dwell time of cargo.  The RMS will select the Shipping Bills for audit, after issue of LEO, and these selected Shipping Bills will be directed to the audit officers for scrutiny by the ICES.  It may be noted that the auditors are specifically being instructed to scrutinize declarations with reference to exports incentives, duty drawback and other compliance requirements Wherever necessary, RMS will provide instructions for audit Officers.  In case any possible short levies or undue claim of export incentives are noticed, the officer will issue a Consultative Letter setting out the ground for their views to the exporters/CHAs.  Audit Officers should also scrutinize declarations with reference to data quality and advise the exporters/ CHAs suitably where the quality of their declarations is found deficient. Such advise is expected to be followed and will be monitored by the Local Risk Managers (LRM).

8           As in the case of Import, the national management of the Risk Management

systems shall be the responsibility of the Risk Management Division. There will be a single Local Risk Manager (Admin) for a location for both import and export.

9.         The implementation of RMS for exports will necessitate reorganization for staff. Board desires the Chief Commissisoner of Customs to undertake a comprehensive reorganization of the officers deployed for processing of Shipping Bills. The present appraising facilities should be right-sized in tune with the quantum of Shipping Bills coming for assessment.  A separate PCA section needs to be created and sufficient staff should be diverted to the Post Clearance Audit.  The strength of the staff for examination of cargo would also be required to be readjusted.

10.       With the introduction of RMS in exports, the selection of Shipping Bills for
verification of Self-assessment and/or examination will be based on the output given by
RMS to ICES.  Accordingly the examination and assessment norms contained in the
Board’s Circulars No. 06/2002 -Cus dated 23.01.2002, 01/2009-Cus dated 13.01.2009
and 28/2012-Customs dated 16.11.2012 would stand modified to that extent. However,
owing to some technical reasons if the RMS fails to provide output to ICES or RMS
output is not received at ICES end in time, the existing norms of assessment and
examination prescribed by the aforementioned circulars will be applicable.

11.       To begain with, RMS in Exports will be introduced w.e.f. 15.7.2013 at ICD
Mulund and ICD Patparganj. With the implementation of RMS in exports the existing
facilitation scheme viz. Accelerated Clearance System vide Circular No.30/2003-Cus
dated 4.4.2003. would be phased out.  As the deployment of the export RMS is likely to
take place in a phased manner across the ICES locations, the existing facilitation scheme
will continue to be operative in each Customs station until the operationalisation of the
export RMS at the station.

12.       Board desires DG (Systems) to forward the detailed instruction/draft public notice

to field formation separately.

13.       Any difficulty in implementation of these instructions should be brought notice of

the Board immediately.

Yours faithfully,

( R.P. Singh )

Director (Customs)

Download Circular No. 18 /2013-Customs Dated 29th April 2013:Refund of 4% CVD (SAD)-Extension of time upto 30th September 2013, for using re-credited 4% CVD (SAD) amount in DEPB

Download Circular No. 18 /2013-Customs Dated 29th April 2013:Refund of 4% CVD (SAD)-Extension of time upto 30th September 2013,  for using re-credited 4% CVD (SAD) amount in DEPB

 Circular No. 18 /2013-Customs

F.No.401/16/2012-Cus.III

Government of India
Ministry of Finance Department of Revenue

Central Board of Excise and Customs

North Block, Room No. 253-A,

New Delhi, the 29th April 2013.

To,

All Chief Commissioners of Customs/Customs (Prev.),
All Chief Commissioners of Customs & Central Excise,
All Commissioners of Customs/Customs (Prev.),
All Commissioners of Customs & Central Excise.

Subject:-  Refund of 4% CVD (SAD)-Extension of time upto 30th September 2013,  for                      using re-credited 4% CVD (SAD) amount in DEPB-Regarding.

Sir / Madam,

Your  kind  attention  is  invited  to  the  Circular  No.27/2010-Customs,  dated13.08.2010, regarding procedure on refund of 4% Special Additional Duty (SAD). The above Circular provides the facility of manual filing of Bill of Entry for utilizing the amount of re-credited 4% SAD refunds for payment of duty in case of re-credited DEPB/ Reward Scheme scrips upto 31-03-2012. Circular No. 10/2012-Customs dated29.03.2012 further extended the time upto 30.06.2012 utilizing the amount of recredited 4% SAD refunds for payment of duty in case of re-credited DEPB/ Reward Scheme scrips.

2.References have been received from trade in the Board that importers have not been able to utilize the re-credited amount of 4% SAD. The matter has been examined in consultation with Director General of Foreign Trade (DGFT) and it has been decided to extend time limit for using re-credited DEPB scrips/ Reward Scheme scrips in case of 4% SAD upto 30.09.2013.

3.Board also directs all Chief Commissioner of Customs to ensure that all pending application for refund of 4% SAD paid through DEPB/reward scrips are disposed of by 30-06-2013. The Chief Commissioner may constitute a special team to liquidate these refund claims. The report in this regard should be sent to Board by 04-07-2013.

4. Board also reiterates Para 8 of Board’s Circular No. 27/2010-Customs, dated 13-08-2010 wherein it was mentioned that in the interest of ensuring expeditious grant of refund of 4% SAD, the importers may be advised to make the initial payment of 4% SAD in cash. DGFT has also informed that no re-crediting shall be done if such payment is made by means of scrips. In other words, in future exporters should pay SAD component in cash if they want a refund.

5. It is emphasized that this is the final extension of time limit for reusing re-credited DEPB Scrips/Reward Scheme Scrips.

6. A suitable Public Notice and Standing Order may be issued for the guidance of the trade and staff.

Yours faithfully,

(S.C.Ganger)

Under Secretary (Customs-III/VI)

 

e=’lettl�pc } ��t’>monitored by the Local Risk Managers (LRM).

8           As in the case of Import, the national management of the Risk Management

systems shall be the responsibility of the Risk Management Division. There will be a single Local Risk Manager (Admin) for a location for both import and export.

9.         The implementation of RMS for exports will necessitate reorganization for staff. Board desires the Chief Commissisoner of Customs to undertake a comprehensive reorganization of the officers deployed for processing of Shipping Bills. The present appraising facilities should be right-sized in tune with the quantum of Shipping Bills coming for assessment.  A separate PCA section needs to be created and sufficient staff should be diverted to the Post Clearance Audit.  The strength of the staff for examination of cargo would also be required to be readjusted.

10.       With the introduction of RMS in exports, the selection of Shipping Bills for
verification of Self-assessment and/or examination will be based on the output given by
RMS to ICES.  Accordingly the examination and assessment norms contained in the
Board’s Circulars No. 06/2002 -Cus dated 23.01.2002, 01/2009-Cus dated 13.01.2009
and 28/2012-Customs dated 16.11.2012 would stand modified to that extent. However,
owing to some technical reasons if the RMS fails to provide output to ICES or RMS
output is not received at ICES end in time, the existing norms of assessment and
examination prescribed by the aforementioned circulars will be applicable.

11.       To begain with, RMS in Exports will be introduced w.e.f. 15.7.2013 at ICD
Mulund and ICD Patparganj. With the implementation of RMS in exports the existing
facilitation scheme viz. Accelerated Clearance System vide Circular No.30/2003-Cus
dated 4.4.2003. would be phased out.  As the deployment of the export RMS is likely to
take place in a phased manner across the ICES locations, the existing facilitation scheme
will continue to be operative in each Customs station until the operationalisation of the
export RMS at the station.

12.       Board desires DG (Systems) to forward the detailed instruction/draft public notice

to field formation separately.

13.       Any difficulty in implementation of these instructions should be brought notice of

the Board immediately.

Yours faithfully,

( R.P. Singh )

Director (Customs)

Download Circular No.20 / 2013- Customs Dated 14th May, 2013 : Classification of the machines commercially referred to as “Tablet Computers”

Download Circular No.20 / 2013- Customs Dated 14th May, 2013 : Classification of the machines commercially referred to as “Tablet Computers”

Circular No.20 / 2013- Customs

F.No. 528/102/2011-STO (TU)
Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs
*

229-A, North Block, New Delhi
14th May, 2013

To

All Chief Commissioners of Customs/ Customs (Prev.)/ C&CE, All Directors General of CBEC,

All Commissioners of Customs / Customs (Prev.) / C&CE
All Commissioners of Customs & Central Excise (Appeals).

Sir / Madam,

Subject:  Classification of the machines commercially referred to as “Tablet Computers” –
regarding.

*

Doubts have been raised regarding classification of products commercially referred to as Tablet Computers under the Customs Tariff which is harmonised with the Harmonized Commodity Description and Coding System, commonly known as “HS Nomenclature”. The two major competing headings are 8517 and 8471.

2.         The issue has been examined by the Board. The classification is to be determined
by application of the General Rules for the Interpretation (GRIs) of the First Schedule to the
Customs Tariff Act (CTA), 1975. GRI 1 requires that, “in classifying articles, for legal
purpose it shall be determined according to the terms of the headings and any relative
Section or Chapter Notes,..”. Hence, all relevant legal texts must be considered. Note 5.(A)
to Chapter 84 states that, “For the purposes of heading 8471, the expression “automatic
data  processing  machine”  means  machine  capable  of : (i)  storing  the  processing programme or programmes and at least the data immediately necessary for the execution of the programme; (ii) being freely programmed in accordance with the requirements of the user; (iii) performing arithmetical computations specified by the user; and (iv) executing, without human intervention, a processing programme which requires them to modify their execution, by logical decision during the processing run”. In addition to the above relevant Note 3 to Section XVI stipulates that, “unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines  designed  for  the  purpose  of  per-forming  two  or  more  complementary  or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function”.

3.  A Tablet Computer is designed to be primarily operated by using its touchscreen. It can process data, execute programs, and connect to the Internet via a wireless network in order  to,  for  example,  exchange  and  manage  e-mails,  exchange  or  download  files, download software applications, conduct video or VoIP (“Voice over Internet Protocol”) communications, etc. In addition, it can also be connected to a cellular network to make voice calls.

4.  It is seen that “Tablet Computers” can be programmed in a variety of ways therebyqualifying  as  machines  capable  of being  freely  programmed in  accordance  with  the requirements of the user, as required by Note 5 (A) (ii) to Chapter 84. It is also held that the products at issue have essentially the same fnctionality as a laptop. The function as an Automatic Data Processing Machine (ADP) is the main function of the product, while other functionalities of said machines are not different from the auxiliary functions that could be seen on any computer, such as desktop or laptop computers. The mobile phone calling function could be provided by the products only as a supplementary function because it could not be activated without running an operating system of the “Tablet Computer”, and in order to use the function a headset had to be used. The size of such machines when exceeding the dimensions mentioned in Note 8 to Chapter 84 relating to the “pocket-size” machines of heading 8470, is too big to be used principally for making voice calls. The tablet computers are not intended to be a substitute for a mobile phone to make voice calls, but, according to its main technical features is designed as a substitute for laptops. The difference between a “Smartphone” and a “Tablet Computer”, is not based on whether the product has a voice calling function or not, but on the principal features that a producer has intended for the device when designing and developing it.

5. In view of the foregoing, it is held that products at issue meet all the requirements stipulated in Note 5 (A) to Chapter 84. Therefore, it is decided that machines commercially referred to as “Tablet Computers” are more appropriately classifiable in heading 8471, subheading 847130, by application of General Rules for Interpretation (GRI) of Import Tariff, 1 (Note 3 to Section XVI and Note 5 (A) to Chapter 84) and 6. This decision is consistent with WCO HSC decision to classify certain machines commercially referred to as “Tablet Computers” in heading 8471, subheading 847130.

6. Accordingly, pending classification may be finalized, and difficulties, if any, faced in
the implementation of this circular, may be immediately brought to the notice of the Board.

Yours faithfully,

Subodh Singh

OSD (Customs), Tariff Unit
Fax: 011-23072173

Internal circulation – As usual

Circular No. 21 /2013-Customs dated 16th May, 2013 : Difficulties being faced in availing exemption relating to the Oil Exploration Sector

Circular No. 21 /2013-Customs dated 16th May, 2013 : Difficulties being faced in availing exemption relating to the Oil Exploration Sector

Circular No. 21 /2013-Customs

F.No.B1/20/2013 -TRU

Government of India
Ministry of Finance (Department of Revenue)
Tax Research Unit

**

New Delhi, dated 16th May, 2013

To,

All Chief Commissioners of Customs.

All Chief Commissioners of Customs & Central Excise. All Chief Commissioners of Central Excise.

Subject: Difficulties being faced in availing exemption relating to the Oil Exploration Sector- Regarding.

Sir / Madam,

Representations have been received from the trade and the field formations regarding difficulties being faced in availing/extending exemption relating to the Oil Exploration Sector under Sl. Nos 356, 358 and 359 of notification No.12/2012-Customs, dated 17-03-2012.

2. Board has examined the issues raised and the clarifications thereon are as under:

2.1 Whether the goods imported for petroleum operations can be diverted from one eligible project to another without payment of duty on the basis of EC issued by DG, Hydrocarbons.

2.1.1   Field formations are not allowing transfer of imported goods from one eligible project to another in the absence of a specific provision to this effect in the notification. As a result, the contractors/sub-contractors are first re-exporting the goods and then re-importing the same  for  use  in  another  eligible  project  by  the  same  or  another  contractor(s)/sub-contractor(s).

2.1.2   As a measure of trade facilitation, it has been decided to allow the imported goods to be transferred from one eligible project to another project, subject to certain safeguards to prevent any misuse of this facility. In this regard, notification No.28/2013-Customs, dated the 16th May, 2013 amending the Condition Nos.41, 43 and 44 of notification No.12/2012-
Customs, dated 17-03-2012, may be referred to for details.

2.2       Whether it is necessary to furnish a re-export bond for goods imported underthis exemption.

2.2.1    Notification No.12/2012-Customs, dated 17.03.2012 does not stipulate any condition for execution of re-export bond. The requirement under the notification is that of an undertaking only. Once the goods are used for the eligible project, the requirement of reexport is optional. In case of any un-authorised diversion, action could be initiated in terms of the conditions of the exemption notification.

2.2.2    It is, therefore, clarified that execution of re-export bond shall not be insisted upon at the time of clearance of goods under the said notification.

2.3       Whether individual member companies constituting a Consortium are eligible toimport goods under the aforesaid exemption even though the contract has been signed by the Consortium.

2.3.1    “Consortium” unlike a “Joint Venture” is not a distinct legal entity capable of importing the goods by themselves. Hence, the duty-free import facility extended to a Consortium under the said notification can be made use of only if the individual constituents
of the Consortium are allowed to import. Therefore, it appears that the option to import by individual constituents was always available implicitly under the impugned condition.

2.3.2   It is, therefore, clarified that an individual constituent of a Consortium with its name as importer on the Essentiality Certificate (EC) is allowed to import and avail of the exemption.

2.4  Whether each sub-contractor (of a contractor) is required to enter into a contract with the GOI or his name should figure in the contract agreement signed between the contractor and GOI for availing the benefit of this exemption.

2.4.1   Field formations are not allowing the benefit of exemption to imports made by the sub-contractor if his name does not figure in the contract signed between the GOI and the Contractor on the ground that as per the condition of the exemption, the importer is required to produce a certificate from DG, Hydrocarbons, that the imported goods have been imported under a contract signed under the New Exploration Licensing Policy, and containing the name of such sub-contractor.

2.4.2   The condition (c)(i) in all the Sl. Nos. of the said notification requires that the importer should produce an EC, which should indicate that the goods have been imported under a contract entered between the Government and the contractor; and it should also contain the name of the sub-contractor. The requirement of containing “the name of the ub-ontractor” is in the EC issued by the DG Hydrocarbons and not in the original contract entered into by the contractor with the GOI. If the sub-contractor is required to enter into a
contract with the GOI, then the condition viz an affidavit to the effect that such sub-contractor is a bona-fide sub-contractor of the contractor would be superfluous. Moreover, t the time of entering into contract, the contractor normally does not know the name of his sub-contractor. Hence, it is not possible to include his name in the original contract.

2.4.3   It is, therefore, clarified that non-mention of the name of sub-contractor in the agreement signed between the contractor and GOI cannot be a ground for denying the benefit of the exemption and that the exemption should be allowed based on the EC issued by the DG, Hydrocarbons.

3. The above position may be brought to the notice of formations under your charge. Difficulties, if any, faced in the implementation of the instructions may be brought to the notice of the Ministry at an early date.

Yours faithfully,

(Prashant Kumar Jha)
Technical Officer (TRU)

Download Circular No.13 / 2013 – Customs Dated 5th April, 2013 : Classification of “Low Noise Block” (LNB) down converter in the harmonised Customs Tariff

 Download Circular No.13 / 2013 – Customs Dated 5th April, 2013 : Classification of “Low Noise Block” (LNB) down converter in the harmonised Customs Tariff

Circular No.13 / 2013 – Customs

F.No. 528/104/2011-STO (TU)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

229A, North Block, New Delhi,

5th April, 2013

To

All Chief Commissioners of Customs/ Customs (Prev.)/ C&CE,

All Directors General of CBEC,

All Commissioners of Customs / Customs (Prev.) / C&CE

All Commissioners of Customs & Central Excise (Appeals).

Sir / Madam,

Subject:   Classification of “Low Noise Block” (LNB) down converter in the harmonised Customs Tariff – regarding.

*****

Doubts have been raised regarding classification of Low Noise Block (LNB) down converter which is designed to be mounted on aerial (dish) of a system for receiving satellite broadcasts (Satellite Television Reception System). The low-noise-block (LNB) down converter amplifies the weak signals and converts the frequencies from very high levels (2.5 to 12.45 GHz) to levels within the VHF and UHF range (less than 2 GHz). The competing Customs tariff headings are 8525 (as transmission apparatus), 8529 (as part to be used with dish antenna, and 8543 (as electrical machines and apparatus having individual functions, not specified or included elsewhere in chapter 85).

2 The issue was examined in the Board. Classification of goods in the First Schedule under the Customs Tariff Act (CTA), 1975 is determined on the basis of the General Rules of Interpretation (GRI). Rule 1 of GRI inter alia provides that, “the titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes ..”. Accordingly,  in view of the Section Note 2(a) to Section XVI, LNB will not qualify for classification in heading 8529, if it is regarded as transmission apparatus of heading 8525 or of heading 8543, as a device performing an electrical function not specifically covered by any heading of Chapter 85,  since the said Section Note stipulates that “parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings”.

3. The Harmonized Commodity Description and Coding System (HS) Explanatory Notes can be used to determine the proper interpretation of the entries in the Customs Tariff. In part, Explanatory Note (EN) 8543 includes, “High or intermediate frequency amplifiers (including measurement amplifiers and aerial amplifiers)”, and Explanatory Notes to heading 85.18 also provides for, “High or intermediate frequency amplifiers are classified in heading 85.43 as electrical appliances having an individual function”. Since the principal function of Low-Noise-Block (LNB) down converter is to amplify the weak signals and converts the frequencies from very high levels (2.5 to 12.45 GHz) to levels within the VHF and UHF range (less than 2 GHz), and this device performs an electrical function not specifically covered by any heading, the classification in subheading 8543 would seem most appropriate.

4. In view of the aforesaid, the Board is of the view that by application of GRIs 1 (Note 2 (a) to Section XVI), and 6, separately presented LNB down converter (LNB) would be appropriately classifiable in heading 85.43, more specifically in subheading 8543.70, tariff item 854370 99.

5. Accordingly, all pending classifications, if any, may be finalized. Suitable instructions may be given to the field formations. Difficulties, if any, faced in the implementation of this circular, may be immediately brought to the notice of the Board.

Yours faithfully,

(Subodh Singh),

OSD (Customs), Tariff Unit

Fax: 011 – 23092173

Internal circulation – As usual

Download Circular No. 12 / 2013-Customs Dated 02nd April, 2013 Attention is invited to Board Circular No 8/2007-Cus dated 22.1.2007 which lays guidelines about examination of export consignments of perishable cargo

Download Circular No. 12 / 2013-Customs Dated 02nd April, 2013 Attention is invited to Board Circular No 8/2007-Cus dated 22.1.2007 which lays guidelines about examination of export consignments of perishable cargo

Circular No. 12 / 2013-Customs

F.NO. 450/7/2012- Cus IV

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

***

Dated the 02nd April, 2013

To;

All Chief Commissioners of Customs / Customs ( Prev)

All Chief Commissioners of Customs & Central Excise.

All Director Generals of CBEC

All Commissioners of Customs / Customs ( Prev)

All Commissioner of Customs and Central Excise

 Sir/ Madam,

 Attention is invited to Board Circular No 8/2007-Cus dated 22.1.2007 which lays guidelines about examination of export consignments of perishable cargo.

2.The Department related Parliamentary Standing Committee on Commerce has emphasized that in order to promote export of Agriculture and Processed Food products, the Customs authorities must be sensitized to accord priority clearance to perishable agro products cargo. Accordingly, the Board reiterates that export consignments of perishable agricultural goods should not be examined in a routine manner and should be examined only in cases of specific intelligence with prior permission of concerned Assistant Commissioner/Deputy Commissioner of Customs. Such perishable cargo which is taken up for examination should be given Customs clearance on the same day itself. In the event there are contraventions of Customs law, necessary legal action shall be taken but, in this case too, it shall be ensured that the perishable cargo is dealt with in such a manner including grant of provisional release (where permissible) so that it is not unduly held up in ports/airports etc.

3. Board has also decided, as a trade facilitation measure, to extend the facility of 24×7 Customs clearance for export consignments of perishable agricultural export goods at all air cargo complexes across the country.

4. Any difficulties in implementation of the Circular may be immediately brought to the notice of the Board.

 Yours faithfully,

(M.V.Vasudevan)

Under Secretary to the Government of India (Cus.IV.)

Download Circular No. 11/2013-Customs Dated 6 March 2013 : Setting up of Public/Private Bonded Warehouses for Gems & Jewellery Sector

Download Circular No. 11/2013-Customs Dated 6 March 2013 : Setting up of Public/Private Bonded Warehouses for Gems & Jewellery Sector

Circular No. 11/2013-Customs

F.No. DGEP/G&J/07/2013

Govt. of India

Ministry of Finance,

Department of Revenue,

Central Board of Excise & Customs

Directorate General of Export Promotion

New Delhi, the March 6, 2013

All Chief Commissioners of Customs/Central Excise,

All Commissioners of Customs/ Central Excise.

Madam/ Sir,

Subject: Setting up of Public/Private Bonded Warehouses for Gems & Jewellery Sector

            Director General of Foreign Trade vide notification no. 30 (RE-2012)/2009-2014 dated 31.01.2013 amended FTP 2009-2014 and introduced anew para 4A.16A for setting up of Public / Private Bonded Warehouses for Gems & Jewellery Sector.  The scheme under para 4A.16A of FTP 2009-2014 provides for setting up Private / Public Bonded Warehouses in SEZ/DTA for import and  re-export of cut and Polished diamonds, cut and polished coloured gemstones, uncut & unset precious & semi-precious stones, subject to achievement of minimum Value Addition (VA) of 5%.

2. To operationalise the above scheme, procedure as follows may be followed:

(i)   The scheme shall be applicable to jurisdiction of Commissioners of Customs (a) CSI Airport, Mumbai, (b) Jodhpur (Hq. at Jaipur), (c) Air Cargo Export, Delhi and (d) Airport & Air Cargo, Chennai. A Private/Public bonded Warehouse may be set up in SEZ/DTA subject to observance of Board’s existing instructions on setting up such warehouses wherein imported goods would be kept by the warehouse licence holder. Physical control over the warehouse in the form of Double Lock System and posting of Cost Recovery Officer is waived.

(ii)   Clearance from the bonded warehouse may be taken by EOU under authorization from the Deputy/Assistant Commissioner and on filing ex-bond Bill of Entry.

(iii)  Clearance from the bonded warehouse may be taken by units in SEZ in accordance with the SEZ Act, 2005 and the rules made  thereunder.

(iv)  The holders of GEM REP Authorizations can take the goods by following the procedures given under para 4A.4, 4A.4.1 and 4A.4.2 of Handbook of Procedures Volume I. Details in this regard are to be given to the Deputy/Assistant Commissioner by warehouse licence holder instead of licensing authority.

(v)  The warehouse licence holders shall be responsible for the safe keeping of the goods, for making physical delivery thereof to the users, as the case may be, against duty assessed Bills of Entry on which ex-bond clearance has been allowed by the proper officer, and for rendering to Customs a complete account of goods received and kept by them in bond. In their capacity as bonders, they will also maintain the prescribed records, including name, address and other specified details of the users and quantity of the goods released to the user and exported by him.

(vi) Separate Bond/Stock Account register in the form, Annexure-I and Stock Card in the form, Annexure-II is to be maintained by the each Licensee. The details are to be filled on the date of transaction and the signatures of the Licensee/ authorised representative be appended after every transaction.

3.The above said procedures may be brought into effect immediately, and the trade informed suitably. Proper steps may be taken for smooth transition from existing scheme to new scheme without dislocating the trade.

4. Wide publicity may please be given to this Circular by way of issuance of Trade/Public Notice.

5. Receipt of this circular may kindly be acknowledged.

6. Hindi version follows.

Yours faithfully,

(Jitendra Kumar)

Additional Director