Date for duty rate and tariff value

874 views 4 replies

Arun Iyer

Article - CA Final

42 Points Joined December 2008

Had a couple of queries.
1. U/s 15 of the Customs act, 1962, the date for referring Duty rate and tariff value for goods exported shall be the date on which Shipping bill is approved, i.e receipt of "Let export Order".

But again u/s 51 the proper officer under customs doesnt make an order permitting clearance and loading of goods for clearance i.e "Let export Order" unless he is satisfied that the exporter has paid the duty.
Though export duty is leviable on a limited number of goods and the rates are generally the same, my query is how is it practically possible to know the rates existing on the LEO date while paying the duties in advance?

2. What is the current interest rate applicable for delay in payment of duty (Above 5 days) 18% or 15 %?
3. What is the current duty rate applicable to Baggages 10% or 35%?

Thankyou.

Replies (4)

Rama Krishnan

MBA

571 Points Joined August 2012

Answers given below

1. Like in Imports, duty rate applicable will the date on filing the Bill of Entry, similar LEO in case of Exports. you need to keep a watch of all notification to know the same

2. Interest rate of delayed duty payment is 15%, Vide notification no 28/2002 NT

3.Baggage duty applicable is 35% Flat. If you are coming from abroad after +3 days stay, then you have a free allowance of Rs 35000/- per passenger

Arun Iyer

Article - CA Final

42 Points Joined December 2008

1. Ya, it is clear that the rates would be as on the date of LEO. But exporter receives a LEO only if he has paid the dues. So how would know the rates existing on date of leo while paying the duties before receiving LEO.

2. Ok. Does the following notification have any effect on the same?

https://www.cbec.gov.in/customs/cs-act/notifications/notfns-2k11/cs-nt2k11/csnt17-2k11.pdf

[28AA. Interest on delayed payment of duty.—²[(1)] ³[Subject to the provisions contained in section 28AB, where a person,] chargeable with the duty determined under sub-section (2) of section 28, fails to pay such duty within three months from the date of such determination, he shall pay, in addition to the duty, interest ⁴[at such rate not below ⁵[ten per cent.] and not exceeding thirty-six per cent. per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette], on such duty from the date immediately after the expiry of the said period of three months till the date of payment of such duty:

3. And can you give any referrance for the 35% rate of duty too?!

Rama Krishnan

MBA

571 Points Joined August 2012

Answers given below, point wise

1. Yes need to keep a close watch of duties while filing the shipping bill for Export and while filing Bill of Entry for Imports.

2. Notification sent by you, levy 18% interest under sec 28 of customs Act, means duty not levied or short levy, erroneous refunds. duty payment after 5 days will attract interest @ 15% only

3.Notification no 136/90 of Customs levy 35% flat duty on all baggage goods exceeding the free limit of rs 35000/- per passenger

Hope things are pretty clear now..