r qu ntly ask qu stions ( aq) · 2018. 5. 30. · q.3 is there any other additional duty of customs...
TRANSCRIPT
FREQUENTLY ASKED QUESTIONS (FAQ)
ON THE PROVISIONS OF THE
CUSTOMS TARIFF ACT, 1975
Prepared by: K.Vijaya Kumar, Asst.Director, RMCC, Mumbai
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For departmental use only
Introduction
Generally, Customs Tariff is mostly referred to know the rates of customs duty (Basic
Customs Duty) for various imported goods listed in the First Schedule of the Customs
Tariff Act, 1975 (CTA, for short).
However, we tend to ignore the provisions of the CTA for the dominant reason that
we required to classify and determine duitiability (assess) for the imported goods by
making reference to the rates of BCD. There is no immediate requirement to refer to
the provisions of the CTA.
Through the present FAQ, an earnest attempt has been made to highlight the
importance of the provisions of the Customs Tariff Act, 1975. Needless to say, that
the provisions of the CTA are equally significant for the assessing officers and for
other stake holders so as to know and also to comply with the provisions of the CTA.
At the outset, it is made clear that the present FAQ is limited only to the extent of the
provisions (sections) of the CTA but it doesn’t include any questions on rates of BCD
or on classification of goods.
Q1. Section 2 of the CTA says that the rates at which duties of customs
shall be levied under the Customs Act, 1962 are specified in the First and
Second Schedules. Under which Section of the Customs Act, 1962 , the
“duties of customs” have been referred to ?
Ans: As per Section 12 of the Customs Act, 1962, duties of customs shall be
levied at such rates as may be specified under the Customs Tariff Act, 1975 or
any other law for the time being in force, on goods imported into, or exported
from, India. The duties of customs as referred in the Section 12 are popularly
known as “Basic Duty of Customs” or BCD.
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Before going to next question, let us have a cursory look at the provisions of
the Customs Tariff Act, 1975 as stated below:
SECTION 1. Short title, extent and commencement.
SECTION 2. Duties specified in the Schedules to be levied
SECTION 3. Levy of additional duty equal to excise duty, sales tax, local taxes
and other charges.
SECTION 4. Levy of duty where standard rate and preferential rate are specified.
SECTION 5. Levy of a lower rate of duty under a trade agreement.
SECTION 6. Power of Central Government to levy protective duties in certain
cases.
SECTION 7. Duration of protective duties and power of Central Government to
alter them.
SECTION 8. Emergency power of Central Government to increase or levy export
duties.
SECTION 8A.Emergency power of Central Government to increase import duties.
SECTION 8B.Power of Central Government to impose safeguard duty.
SECTION 9. Countervailing duty on subsidized articles.
SECTION 9A Anti- dumping duty on dumped articles.
SECTION 9AARefund of anti-dumping duty in certain cases.
SECTION 9B. No levy under section 9 or section 9A in certain cases.
SECTION 9C. Appeal.
SECTION 10. Rules to be laid before Parliament.
SECTION 11. Power of Central Government to alter duties under certain
circumstances.
SECTION 11APower of Central Government to amend First Schedule.
SECTION 12. Repeal and saving.
SECTION 13. Consequential amendment of Act 52 of 1962.
Q.2 Are the Additional Duty of Customs equal to excise and CVD the one
and the same?
Ans: Yes. It is also popularly known as CVD. The additional duty of customs is
levied under Section 3 (1) of the CTA equal to the excise duty for the time
being leviable on a like article if produced or manufactured in India.
Q.3 Is there any other additional duty of customs levied under Section
3(3) of the Customs Tariff Act (CTA)?
Ans: Yes. Imported articles can also be subjected to an additional duty under
Section 3 (3) of the CTA, representing the portion of the excise duty leviable
on such raw materials, components and ingredients.
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Q.4. What about the SAD ?
Ans: The additional duty of customs levied under Section 3(5) of the CTA is
popularly known as SAD or Special Additional Duty. The said section
empowers the imposition of the additional duty as would counter-balance the
sales tax, value added tax (VAT), local tax or any other charges at a rate not
exceeding four per cent of the value of the imported article.
This duty is subsumed in the GST with effect from 1st July, 2017.
Q.5 What is the main change after introduction of the GST with
reference to CVD or additional duty of customs equal to excise or SAD?
Ans: There are legislative changes in the Central Excise Tariff Act, 1985
(CETA) and the Customs Act, and the CTA, 1975 though the Taxation Laws
(amendment) Act, 2017. As you are aware, the CVD is now replaced by IGST
on imported goods except those goods specified in the Fourth Schedule of
the CETA, 1985 which contains tariff items of Chapter 24 and Chapter 27 that
too limited to Tobacco products, Cigarettes and Petroleum products.
New Fourth Schedule is inserted in CETA to provide for classification and
duty rates for specified petroleum and tobacco products which will continue
to attract central excise duty even after introduction of GST.
Q.6 What is CENVAT ?
Ans: It may be noted that the duty to be called Central Value Added Tax
(CENVAT) on all excisable goods manufactured in India (excluding SEZs) at
specified rates prescribed in the Fourth Schedule to CEA, 1985 is introduced
under the Taxation Laws (amendment) Act, 2017.
Q.7 For what levies, new sub-section (7) and sub-section (9) are inserted
to Section 3 of the Customs Tariff Act, 1975 ?
Ans: Imported article shall, in addition, be liable to integrated tax and GST
compensation cess as per Section 3(7) and Section 3(9) of the CTA.
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Provisions of sub-section (7) and sub-section (9) of
Section 3 of the CTA, 1975:
(7) Any article which is imported into India shall, in addition, be
liable to integrated tax at such rate, not exceeding forty per cent.
as is leviable under section 5 of the Integrated Goods and
Services Tax Act, 2017 on a like article on its supply in India, on
the value of the imported article as determined under sub-
section (8) or sub-section (8A), as the case may be.
(9) Any article which is imported into India shall, in addition, be
liable to the goods and services tax compensation cess at such
rate, as is leviable under section 8 of the Goods and Services
Tax (Compensation to States) Cess Act, 2017 on a like article
on its supply in India, on the value of the imported article as
determined under sub-section (10) or or sub-section (10A), as
the case may be.
Q.8 What does Section 5 of the IGST Act, 2017 provide for ?
Ans: The proviso to Section 5 of the IGST Act says that the integrated tax on
goods imported into India shall be levied and collected in accordance with the
provisions of section 3 of the Customs Tariff Act, 1975 on the value as
determined under the said Act at the point when duties of customs are levied
on the said goods under section 12 of the Customs Act, 1962.
Q.9 What is the value for the purpose of calculating Integrated Tax and
for GST compensation cess is determined ?
Ans: As per amended provisions of CTA, the value for the levy of Integrated
Tax has to be determined under sub-section (8) or sub-section (8A) of Sec.3.
The value for compensation cess is required to be determined under sub-
section (10) or or sub-section (10A) of Section 3.
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Q.10 Under what provisions, the value of an imported article is
determined for levying IGST and GST cess ?
Ans: The value of the imported article determined under sub-section (1) of
section 14 or the tariff value of such article fixed under sub-section (2) of the
Section 14 of the Customs Act, 1962 read with Section 3(8) or 3(8A) and
Section 3 (10) or 3(10A) of the Customs Tariff Act, 1975 as the case may be.
Q.11 How to calculate Integrated Tax or IGST on imported goods ?
Ans: As per sub-section (8) of Section 3, For the purposes of calculating the
integrated tax on any imported article where such tax is leviable at any
percentage of its value, the value of the imported article shall be the
aggregate of—
(a) the value of the imported article determined under sub-section (1) of
section 14 of the Customs Act, 1962 or the tariff value of such article fixed
under sub-section (2) of that section, as the case may be; and
(b) any duty of customs chargeable on that article under section 12 of the
Customs Act, 1962, and any sum chargeable on that article under any law
for the time being in force as an addition to, and in the same manner as, a
duty of customs, but does not include the tax referred to in sub-
section (7) or the cess referred to in sub-section.
In other words, the value for the purpose of calculating Integrated Tax is the
aggregate of:
(a) Assessable Value or Tariff Value.
(b) BCD
(c) Any sum chargeable under any other law.
Q.12 Any sum chargeable under any other law means ?
Ans: Any sum would include education cess or higher education cess as
well as anti-dumping and safeguard duties. The inclusion of anti-dumping
duties and safeguard duty in the value for levy of IGST and Compensation
Cess is an important change.
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Q.13 How to calculate GST Compensation Cess on imported goods ?
Ans: As per sub-section (10) of Sec.3 of the CTA, For the purposes of
calculating the GST compensation cess on any imported article where such
cess is leviable at any percentage of its value, the value of the imported
article shall be the aggregate of—
(a) the value of the imported article determined under sub-section (1) of
section 14 of the Customs Act, 1962 or the tariff value of such article fixed
under sub-section (2) of that section, as the case may be; and
(b) any duty of customs chargeable on that article under section 12 of the
Customs Act, 1962, and any sum chargeable on that article under any law
for the time being in force as an addition to, and in the same manner as, a
duty of customs, but does not include the tax referred to in sub-section
(7) or the cess referred to in sub-section (9).
Here also, excluding integrated tax and compensation cess, the value for the
purpose of calculating compensation cess is the assessable value (or tariff
value) plus BCD and Education cess, ADD and safeguard duty.
The expression “ Any sum chargeable on that article under any law for the
time being in force as an addition to, and in the same manner as, a duty of
customs” has to be noted. Therefore, any sum when charged as a duty of
customs shall be included.
Q.14 Are the provisions of the Customs Act, 1962 applicable to duties
collected under the CTA ?
Ans: Yes. According to Section 3 (12) of the CTA, the provisions of the
Customs Act, 1962 and the rules and regulations made thereunder, including
those relating to drawbacks, refunds and exemption from duties shall, so far
as may be, apply to the duty or tax or cess, as the case may be, chargeable
under this section as they apply in relation to the duties leviable under that
Act.
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Q.15 What are the new sub-sections inserted to Section 3 of the CTA
vide Finance Act, 2018 ?
Ans: New sub-Section (8A) and sub-section (10A) to Section 3 are inserted
vide Finance Act, 2018.
Q.16 What is the value for the purpose of calculating Integrated Tax and
Compensation Cess, in the case of warehoused (Bonded) goods ?
Ans: As per section 3 (8A)/ 3(10A), when the bonded goods are sold to any
person before clearance for home consumption or export, the value of such
goods for the purpose of calculating the integrated tax and compensation
cess shall be,—
(a) where the whole of the goods are sold, the value determined under sub-
section (8)/sub-section (10) or the transaction value of such goods,
whichever is higher; or
(b) where any part of the goods is sold, the proportionate value of such goods
as determined under sub-section (8)/sub-section (10) or the transaction
value of such goods, whichever is higher.
In other words, the value of warehoused goods when sold before clearance
shall be higher of transaction value (actual amount paid or payable as
consideration for sale of goods) or the value determined under the Customs
Tariff Act (Assessable value under Customs + BCD).
Q.17 What is the method of calculation of Integrated Tax or
Compensation cess for warehoused goods prior amendment by insertion
of sub-section 8A and 10A ?
Ans: Prior to the amendment or insertion of new sub-sections, the value of
imported goods, for purposes of charging customs duty, Integrated Tax and
Compensation Cess, was determined as per Section 14 of the Customs Act at
the time of import i.e. at the time of filing of the into-bond Bill of Entry. Any
costs incurred after the import of goods, or any margin on sale of bonded
warehouse goods cannot be added to the value of the goods, for the purpose
of levy of duties of customs at the stage of ex-bonding.
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Q.18 What is the value for the purpose of charging Integrated Tax or
Compensation Cess when warehoused goods sold more than once before
clearance ?
Ans: As per proviso to Section 3 (8A) and proviso to Section 3(10A), it
provides that where the whole of the warehoused goods or any part thereof
are sold more than once before such clearance for home consumption or
export, the transaction value of the last such transaction shall be the
transaction value.
Q.19 What is the value for the purpose of charging Integrated Tax or
Compensation Cess when warehoused goods remained unsold ?
Ans: As per second proviso Section 3 (8A) and 3(10A), it provides that in
respect of warehoused goods which remain unsold, the value or the
proportionate value, as the case may be, of such goods shall be determined in
accordance with the provisions of sub-section (8)/sub-section (10).
In respect of warehoused goods which remained unsold, the value is
continued to be same as determined earlier under Section 3(8) or Section
3(10), as the case may be, for the purpose of calculating IGST or
Compensation cess.
For the purpose of these sub-sections (8A& 10A), the expression “transaction
value”, in relation to warehoused goods, means the amount paid or payable
as consideration for the sale of such goods.
Q.20 What is the effective of amendment in respect of warehousing
goods ?
Ans: After the amendment, BCD shall continue to be charged on the same
value under Section 14 of the Customs Act. However, Integrated Tax and
Compensation Cess shall be charged on the value with the addition of any
margin earned on bonded warehouse sale.
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Q.21 Are duties levied and collected under Section 3 of the CTA, in
addition to any other duty or tax or cess ?
Ans: Yes. As per Section 3 (11), the duty or tax or cess, as the case may be,
chargeable under this section shall be in addition to any other duty or tax or
cess, as the case may be, imposed under this Act or under any other law for
the time being in force.
Q.22 How many sub-sections are there in Section (3) of the CTA ?
Ans: It is the largest Section amongst in the Customs Tariff Act, 1975 with
fourteen sub-sections in number including new sub-sections (8A) and (10A).
Sub-sections of Section 3 at a glance:
Section 3(1)…Additional duty of customs equal to excise duty (CVD)
Section 3(2)…Method of Computation of CVD
Section 3(3)…Additional duty equal to raw material, components, etc.….
Section 3(4)…Procedure to be followed while making rule under Section 3(3)
Section 3(5)…Additional duty to equal to the sales tax, VAT, local tax or
any other charges.(SAD)
Section 3(6)…Method of Computation of SAD
Section 3(7)…Levy of Integrated Tax or IGST
Section 3(8)…Method of computation of IGST or Integrated Tax.
Section 3(8A).Value for the levy of IGST for warehoused goods.
Section 3 (9).. Levy of GST compensation cess.
Section 3(10). Method of computation of GST cess
Section 3(10A) Computation of Compensation cess on warehoused goods
Section 3(11). Duties to be charged as extra.
Section 3 (12).Applicability of provisions of the Customs act, rules….
Q.23 What are the charging sub-sections within Section 3 of CTA ?
Ans: The duty referred to in sub-sections (1), (3), (5), (7) and (9) of Section 3
provides for levy of three Additional duty of Customs (CVD, Equivalent to Raw
material, SAD), Integrated Tax and the GST compensation cess respectively.
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Q.24 What provisions, does Section 4 of the CTA contain?
Ans: The subject provisions deals with preferential rate of duty, rules
framed for this purpose, and the power of the Central Govt. to discontinuing,
increasing and decreasing the preferential rates.
Unless the owner of the article claims at the time of importation that it is
chargeable with a preferential rate of duty, the duty to be levied and collected
shall be at the standard rate. Therefore, burden shifts on the owner of goods
to claim preferential rate notified at the time of imports or else the duty would
be levied at standard rate.
Q.25 Can a lower rate of duty be claimed under a trade agreement or
FTA?
Ans: In pursuance of a Free Trade Agreement (FTA) between India and a
Foreign Country, a lower duty (as notified) be charged on an imported article
than that of standard rate, if the article was produced or manufactured in a
foreign country or territory in accordance with the rules framed. The owner
has to make a claim at the time of the importation, with supporting evidence
for an assessment at the appropriate lower rate as per provisions of Sec. 5.
If any question arises whether any trade agreement applies to any country or
territory, or whether it has ceased to apply to India or any foreign country or
territory, it shall be referred to the Central Government for decision and the
decision of the Central Government shall be final and shall not be liable
to be questioned in any court of law.
Courts have no jurisdiction to decide the said question.
Q.26 What are the other duties levied under the provisions of the
Customs Tariff Act, 1975 (CTA) ?
Ans: The other duties are:
Provision under CTA Name of the duty
Section 6 Protective duty
Section 8B Safeguard duty
Section 9 Countervailing duty on subsidized articles
Section 9B Anti-dumping duty on dumped articles
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Q.27 What are the provisions that deals with the protective duty ?
Ans: Section 6 of the CTA empowers the Central Government to impose a
protective duty upon the recommendation of the Tariff Commission, if the
emergency circumstances exist to provide for the protection of the interests of
any industry established in India. Further, section 7 deals with the duration of
protective duties and power of Central Government to alter them.
Q.28 Whether the Tariff Commission is constituted as per provisions of
the CTA ?
Ans: No, the Tariff Commission for the purpose of levying Protective Duty is
constituted under the provisions of the Tariff Commission Act, 1951.
Q.29 Does the Central Government has any emergency powers to
increase or levy export duty?
Ans: The Central Government may, by notification in the Official Gazette,
direct an amendment of the Second Schedule to be made so as to provide for
an increase in the export duty leviable or, as the case may be, for the levy of
an export duty, on that article.
Section 8A of the Customs Tariff Act, 1975
SECTION 8A. Emergency power of Central Government to
increase import duties. — (1) Where in respect of any article
included in the First Schedule, the Central Government is satisfied
that the import duty leviable thereon under section 12 of the
Customs Act, 1962 (52 of 1962) should be increased and that
circumstances exist which render it necessary to take immediate
action, it may, by notification in the Official Gazette, direct an
amendment of that Schedule to be made so as to provide for an
increase in the import duty leviable on such article to such extent
as it thinks necessary :
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Q.30 Whether “ BCD rates by tariff” on imported goods can be
increased by the Central Government?
Ans: Yes. It may be noted from the provisions of Section 8A of the Customs
Tariff Act that the Central Government has emergency powers to increase BCD
on any articles included in the First Schedule.
The Central Government in exercise of the powers conferred under Section
8A(1) may issue a notification increasing the import duty leviable on such
article to such extent as it thinks necessary.
Q.31 Any recent instance of increase in the BCD by the Central
Government ?
Ans: Notification No.45/2018-Customs dated 23.05.2018 is the notification
issued under Section 8A (1) of the CTA.
For better appreciation, the text of the said notification is reproduced as
below:
G.S.R. (E). - Whereas the Central Government on being satisfied that the import duty
leviable on goods falling under heading 0802 31 00 and 2106 10 00 of the First
Schedule to the Customs Tariff Act, 1975 (51 of 1975), should be increased and that
circumstances exist which render it necessary to take immediate action.
Now, therefore, in exercise of the powers conferred by sub-section (1) of section
8A of the said Customs Tariff Act, the Central Government, hereby directs that the
First Schedule to the said Customs Tariff Act, shall be amended in the following
manner, namely:-
In the First Schedule to the said Customs Tariff Act,-
(i) in Section II, in Chapter 8, against tariff item 0802 31 00, for the entry in
column (4), the entry "100%" shall be substituted.
(ii) in Section IV, in Chapter 21, against tariff item 2106 10 00, for the entry in
column (4), the entry "40%" shall be substituted.
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Levying of Safeguard duty under Section 8B of the
CTA
SECTION 8B. Power of Central Government to impose safeguard duty. — (1)
If the Central Government, after conducting such enquiry as it deems fit, is
satisfied that any article is imported into India in such increased quantities
and under such conditions so as to cause or threatening to cause serious
injury to domestic industry, then, it may, by notification in the Official
Gazette, impose a safeguard duty on that article :
Q.32 Describe briefly about Director General of Safeguard (DGS).
The Director General of Safeguards under the Department of Revenue,
Ministry of Finance is presently mandated to investigate the existence of
"serious injury" or "threat of serious injury” to domestic industry as a
consequence of increased import of an article into India and to submit his
findings to the Central Government along with recommendations regarding
the amount of duty and period of levy of duty which if levied would be
adequate to remove the injury or threat of injury to the domestic industry.
The domestic law to implement Safeguard measures has been enacted under
Section 8B of the Customs Tariff Act, 1975. The Customs Tariff (Identification
and Assessment of Safeguard Duty) Rules, 1997 govern the procedural
aspects.
Q.33 Whether 100% Export Oriented Undertaking (EOU) or Special
Economic Zone (SEZ ) is exempted from the payment of Safeguard duty ?
Ans: Yes. As per provisions of Section 8B (2A) of the CTA, Safeguard duty
imposed shall not apply to articles imported by a hundred per cent export-
oriented undertaking or a unit in a special economic zone unless,—
(i) specifically made applicable in such notifications or such impositions, as
the case may be; or
(ii) the article imported is either cleared as such into the domestic tariff area
(DTA) or used in the manufacture of any goods that are cleared into the
DTA.
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Creation of Directorate General of Trade
Remedies (DGTR) in Department of
Commerce.
The Government of India carried out an
Amendment to the Government of India
(Allocation of Business) Rules, 1961 on May 7, 2018
substituting “Directorate General of Trade
Remedies” in place of “Directorate General of
Anti-Dumping and Allied Duties” in Department of
Commerce. This has paved way for creation of an
integrated single umbrella National Authority to be
called the Directorate General of Trade Remedies
(DGTR) for providing comprehensive and swift
trade defence mechanism in India.
2. Currently, the Directorate General of Anti-
dumping and Allied Duties (DGAD) deals with
anti-dumping and CVD cases, Directorate General
of Safeguards (DGS) deals with safeguard
measures and DGFT deals with quantitative
restriction (QR) safeguards. The DGTR will bring
DGAD, DGS and Safeguards (QR) functions of
DGFT into its fold by merging them into one single
national entity. DGTR will deal with Anti-
dumping, CVD and Safeguard measures.
3. The DGTR will function as an attached office
of Department of Commerce. The
recommendation of DGTR for imposition of Anti-
dumping, countervailing & Safeguard duties would
be considered by the Department of Revenue.
DGTR
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Levy of CVD on subsidized articles under
Section 9 of the CTA.
SECTION 9. Countervailing duty on subsidized articles. — (1) Where
any country or territory pays, bestows, directly or indirectly, any
subsidy upon the manufacture or production therein or the
exportation therefrom of any article including any subsidy on
transportation of such article, then, upon the importation of any such
article into India, whether the same is imported directly from the
country of manufacture, production or otherwise, and whether it is
imported in the same condition as when exported from the country of
manufacture or production or has been changed in condition by
manufacture, production or otherwise, the Central Government may,
by notification in the Official Gazette, impose a countervailing duty
not exceeding the amount of such subsidy.
Q.34 What are the Countervailing duties (CVDs)?
Ans: Countervailing duties (CVDs), also known as anti-subsidy duties, are
trade import duties imposed to neutralize the negative effects of subsidies.
They are imposed after an investigation finds that a foreign
country subsidizes its exports, injuring domestic
producers in the importing country.
It is imposed in accordance with the GATT Article VI and
the GATT Agreement on Subsidies and Countervailing
Measures.
Q.35 Give one example on the levy of CVD in India.
Ans: The Notification No.1/2017-Customs (CVD) dated 07.09.2017 the
Govt. has imposed CVD on “Certain Hot Rolled and Cold Rolled Stainless Steel
Flat Products” falling under tariff heading 7219 or 7220 of the First Schedule
to the Customs Tariff Act.
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Anti-dumping duty (ADD) under Section 9A of
the Customs Tariff Act, 1975
SECTION 9A . Anti- dumping duty on dumped articles. — (1) Where any article is exported by an exporter or producer from any country or territory (hereinafter in this section referred to as the exporting country or territory) to India at less than its normal value, then, upon the importation of such article into India, the Central Government may, by notification in the Official Gazette, impose an anti-dumping duty not exceeding the margin of dumping in relation to such article.
Q.36 What is Anti-Dumping Duty (ADD)?
Ans. Dumping is said to occur when the goods are exported by a country to
another country at a price lower than its normal value. This is an unfair trade
practice which can have a distortive effect on international trade. Anti
dumping is a measure to rectify the situation arising out of the dumping of
goods and its trade distortive effect. Thus, the purpose of anti-dumping duty
is to rectify the trade distortive effect of dumping and re-establish fair trade.
The use of anti-dumping measure as an instrument of fair competition is
permitted by the WTO. In fact, anti-dumping is an instrument for ensuring fair
trade and is not a measure of protection per se for the domestic industry. It
provides relief to the domestic industry against the injury caused by dumping.
Q.37 Is 100% EOU required to pay ADD ?
Ans: No, As per Section 9A (2A) of the CTA, ADD shall not apply to articles
imported by a hundred per cent, export-oriented undertaking unless, —
(i) specifically made applicable in such notifications or such impositions, as
the case may be; or
(ii) the article imported is either cleared as such into the domestic tariff area
or used in the manufacture of any goods that are cleared into the
domestic tariff area (DTA).
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Q.38 Is the importer entitled for the refund of ADD ? If so what cases?
Ans: As per provisions of Section 9AA, an importer proves to the
satisfaction of the Central Government that he has paid anti-dumping duty
imposed on any article, in excess of the actual margin of dumping in
relation to such article, the Central Government shall, as soon as may be,
reduce such anti-dumping duty as is in excess of actual margin of dumping so
determined, in relation to such article or such importer, and such importer
shall be entitled to refund of such excess duty.
Q.39 Shall an article be subjected to both countervailing duty and anti-
dumping duty to compensate for the same situation of dumping or
export subsidization?
Ans: No. As per Section 9B, no article shall be subjected to both
countervailing duty and anti-dumping duty to compensate for the same
situation of dumping or export subsidization.
Q.40 Can there be any appeal against determination of subsidy or
dumping?
Ans: Yes. An appeal under Section 9C lies before CESTAT against the order of
determination or review thereof regarding the existence, degree and effect of
any subsidy or dumping in relation to import of any article.
Q.41 Are the rules framed under the provisions of CTA are required to be
laid down before the Parliament?
Ans: Yes. Every rule made under this Act shall be laid, as soon as may be after
it is made, before each House of Parliament as per the provisions of Sec.10.
Q.42 Can the Central Government in pursuance of an agreement entered
with a foreign Government increase or reduce the duties?
Ans: The Central Government, as per Section 11, if satisfied that it is
necessary so to do for the purpose of giving effect to any agreement entered
into before the commencement of this Act with a foreign Government, it may,
by notification increase or reduce the duties referred to in section 2 to such
extent as each case may require .
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Q.43 Can the Central Government amend the First Schedule of the CTA ?
Ans: The Central Government can amend the First Schedule by issuing a
notification under Section 11A (1) of the CTA. However, such amendment
shall not alter or affect in any manner the rates in respect of goods at
which duties of customs shall be leviable on the goods under the Customs
Act, 1962.
Q.44 Give one instance of such amendment or Notification.
Ans: The Notification No.22/2018-Customs (NT) dated 20.03.2018.
For better appreciation, the text of said notification is reproduced as under:
G.S.R. ........…. (E). - In exercise of the powers conferred by sub-section (1) of
section 11A of the Customs Tariff Act, 1975 (51 of 1975), the Central
Government, on being satisfied that it is necessary in the public interest so to
do, hereby makes the following further amendments in the First Schedule to
the Customs Tariff Act, 1975,namely: -
In the said First Schedule, in Chapter 7, for tariff item 0713 20 00 and the
entries relating thereto, the following shall be substituted, namely: -
“ 0713 20 - Chickpeas (garbanzos):
0713 20 10 - - - Kabuli chana kg. 60 % 20 %
0713 20 20 - - - Bengal gram (desi chana) kg. 60 % 20 %
0713 20 90 - - - Other kg. 60 % 20 %”
Q.45 What is the main difference between the provisions of Section 8A
and Section 11A ?
Ans: In the said Notification No.22/2018-Customs (NT), it may be noted that
certain new tariff entries are added but there is no change in the existing rates
of BCD in the First Schedule. The Central Government has emergency power
to increase the BCD rate u/s 8A whereas Section 11A of the CTA without
altering rates of BCD provides for amendment in the other parameters.
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