Select importers may henceforth pay customs duties on a fortnightly basis, instead of doing so before clearance of each consignment. Upon assessment of the bill of entry, they will be allowed to take the imported goods and pay the duties on the due dates.
This facility for Authorised Economic Operators (AEO) is one of the non-mandatory measures recommended in the Trade Facilitation Agreement at the World Trade Organization. And, one of the standards mentioned in the Kyoto Convention on Simplification and Harmonisation of Customs Procedures.
In his Budget speech this year, the finance minister said he proposed to amend the Customs Act to allow such deferred payment for importers and exporters with a proven record. Accordingly, Sections 47, 51 and 156 of the Customs Act were amended, stating that the government could notify rules in this regard for certain classes of importers, for Customs duty or other charges. Circular 33/2016-Cus of the Central Board of Excise and Customs, dated July 22, listed this as one of the many facilitation an AEO would get.
So, the government issued two notifications last Wednesday, both titled ‘Deferred Payment of Import Duty Rules, 2016’. One permits ‘Importers certified under the AEO programme as AEO (Tier-Two) and AEO (Tier-Three)’ to make deferred payment of import duty. The second one prescribes the dates when payment is due and the manner of payment. The procedure requires the eligible importer to intimate the principal commissioner or commissioner of Customs having jurisdiction over the port of clearance on the intention to avail of the said benefit.
On being satisfied with the eligibility, the permission would be given.
For goods corresponding to the bill of entry returned for duty payment from the 1st to 15th of any month, the date for payment is the 17th of that month. For those so returned from the 16th day till the last day of any month, other than March, the duty must be paid by the 2nd of the following month, and so on. Interest is payable for duty payments made after the due dates.
The duty has to be paid electronically and if there is a default more than once in three consecutive months, this facility of deferred payment will be with-drawn, till the duty with interest has been fully paid.
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