News Flash Customs Duty

Udyog Software (India) Ltd.

27/10/2014



This document contains a brief summary of the latest updates related to Customs Duty

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Customs: Tariff values notified

The CBEC has issued notification 97/2014-Customs (NT) dated 14 October 2014 to notify fresh tariff values for
specified commodities under section 14 of the Customs Act 1962. Under this latest notification, the values of
brass scrap and of the palm oleins are reduced; and the value of crude soyabean oil, poppy seeds and areca
nuts is raised. The value of silver remains unaltered; however, the value of gold in respect of which the
benefit of serial numbers 321 and 323 of notification 12/2012-Customs is availed has been raised from USD 396
per 10 grams to USD 401 per 10 grams. The notification 97/2014-Customs (NT) dated 14 October 2014 can be
seen at http://cbec.gov.in/customs/cs-act/notifications/notfns-2014/cs-nt2014/csnt97-2014.htm.


Customs: CBEC clarifies regarding import of pesticides

As earlier reported in these columns, the Gujarat High Court had ordered earlier this year that imported
consignments of formulations of technical grade pesticides must be tested to verify the technical grade /
material; accordingly the CBEC had issued circular 7/2014-Customs dated 7 March 2014 directing its customs
formations to carry out such testing of actual physical samples of each consignment of imported formulations
of technical grade pesticide.
Subsequently the Gujarat High Court clarified its earlier order to the effect that technical grade / material
need not be insisted upon for every consignment, as it is provided at the time of registration: each imported
consignment is to be verified and tested so that it matches with the technical grade / material regarding
specification and quality. The CBEC has modified its earlier instructions by issue of circular number 10/2014-
Customs dated 17 October 2014 in the light of the High Court order: http://cbec.gov.in/customs/cs-
circulars/cs-circ14/circ10-2014cs.pdf.


Customs: Exchange rates

The exchange rates of specified currencies were notified by the CBEC under section 14 of the Customs Act
1962 to be effective from 17 October 2014. The rate of exchange of the US dollar for purpose of customs
valuation of imported goods is Rs 62.05 under this notification, and for export goods it is Rs 61.05; the rate for
the Euro is Rs 79.90 for imported goods and Rs 78 for export goods; the rate of the pound sterling is Rs 99.45
for imported goods and Rs 97.25 for export goods. The notification 98/2014-Customs (NT) dated 16 October
2014 can be downloaded from http://cbec.gov.in/customs/cs-act/notifications/notfns-2014/cs-
nt2014/csnt98-2014.htm.


Customs: Period for furnishing utilisation certificate for natural gas extended to one year

Natural gas and liquefied natural gas are exempted from basic customs duty under entry 139A of notification
12/2012-Customs if imported for supply to a generating company as defined in the Electricity Act, for
generation of electrical energy. The exemption is subject to production of a utilisation certificate from the
Assistant / Deputy Commissioner of Central Excise who has jurisdiction over the generating company. The
certificate was hitherto to be produced within six months of import; now the central government has issued
notification 30/2014-Customs dated 20 October 2014 amending this to one year. The notification can be
downloaded from http://cbec.gov.in/customs/cs-act/notifications/notfns-2014/cs-tarr2014/cs30-2014.htm.

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Content provided by:

Radha Arun
Consultants to Udyog Software (India) Ltd.
radha.arjuni@gmail.com

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