We are a main contractor for a project funded by a multilateral agency and so, our supply is covered under Para 8.2 (d) of the Foreign Trade Policy. Among other sub-contractors, one sub-contractor is from abroad whose name is mentioned in the Project Authority Certificate. We intend to import some components from this sub-contractor abroad and supply them directly to the project site. We are aware that we can import the items without payment of basic customs duty and additional customs duty under exemption notification no. 84/97 dated 11.11.1997. However, as the items are subject to anti-dumping duty, we want to apply for advance authorisation and claim exemption from anti-dumping duty. Can we apply for advance authorisation and directly supply these components to the project site?
First, you may note that deemed export benefits are available for goods manufactured in India. You may import duty-free, whether from a named sub-contractor or from any other party, the inputs required for manufacture of goods to be supplied to the projects funded by multilateral agencies, by obtaining advance authorisation, if you fulfil all stipulated conditions. Para 4.5 of the Handbook provides that the duty-free material imported or procured against an authorisation can be taken to the project site as per the provisions given in form ANF-4A and Department of Revenue guidelines in this regard. This provision has been implemented vide condition (xi) of the Notification No. 112/09-Cus. dated 29-9-09 and the detailed guidelines are prescribed at Para II (6) (iv) of the CBEC Circular no. 26/2009-Cus., dated 30-9-2009. You may carefully note the conditions given in the guidelines and also note that the facility is restricted to only finished components and parts required to manufacture final goods which are fully exempted from payment of terminal excise duty in terms of a central excise notification and where the supply is made under ICB procedure.
Many times, we find that the freight amount on shipping bills differs from the amount on the AWB. Is it mandatory to have the actual freight amount charged by airlines on shipping bills?
According to CBEC Circular no. 44/2000 dated 15.05.2000, the exporter must declare the actual freight paid or payable by him on the shipping bill, or when the goods are presented for examination. This declaration of freight must reflect the freight charges borne by the exporter irrespective of the amount received by the shipping lines or by the consolidating agents or any other person engaged in the shipment of the goods. In exceptional cases, when the exporter is not able to ascertain the actual freight payable by him at the time of export, the exporter must file a declaration of the freight payable for the consignment on the basis of the standard published freight schedule. However, the exporter should review each case of shipment after export has taken place and if the freight borne by him is higher than the one declared in the shipping bill, he should immediately on his own pay back to the customs the excess amount of drawback claimed/received or any other export incentives claimed thereon. Any mis-declaration of freight paid or payable, which results in loss of revenue by way of excess drawback payment, is liable to be proceeded against under the Customs Act, 1962.
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