DGFT amends Para 4.14 and 4.16 of Foreign Trade Policy 2015-2020

Jan 11, 2019 | by Avantis RegTech Legal Research Team


The Directorate General of Foreign Trade (DGFT) on January 10, 2019 has made amendment in Para 4.14 and 4.16 of Foreign Trade Policy (FTP) 2015-2020 to remove pre-import condition to avail exemption from Integrated Tax and Compensation Cess and exemption from Integrated Tax and Compensation Cess has also been extended to deemed supplies.

Existing Para 4.14 of FTP 2015-2020:

Amended Para 4.14 of FTP 2015-2020:

4.14 Details of Duties exempted:

Imports under Advance Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Import against supplies covered under paragraph 7.02 (c), (d) and (g) of FTP will not be exempted from payment of applicable Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, if any. However, imports under Advance Authorisation for physical exports are also exempt from whole of the integrated tax and Compensation Cess leviable under sub-section (7) and sub-section (9) respectively, of section 3 of the Customs Tariff Act, 1975, as may be provided in the notification issued by Department of Revenue, and such imports shall be subject to pre-import condition. Imports against Advance Authorisations for physical exports are exempted from Integrated Tax and Compensation Cess upto October 01, 2018 only.

 

4.14 Details of Duties exempted:

Imports under Advance Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Import against supplies covered under paragraph 7.02 (c), (d) and (g) of FTP will not be exempted from payment of applicable Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, if any. However, imports under Advance Authorisation are also exempt from whole of the Integrated tax and Compensation Cess leviable under Sub-section (7) and Sub-section (9) respectively, of Section 3 of Customs Tariff Act, 1975, as may be provided in the notification issued by Department of Revenue, for making physical exports or domestic supplies notified at Sr. nos. 1, 2 and 3 of the table contained in Notification No. 48/ 2017-Central Tax dated October 18, 2017 issued by Department of revenue. Imports against Advance Authorisations are exempted from Integrated Tax and Compensation Cess upto March 31, 2019 only.

 

 

Para 4.16 (ii), reference to jurisdictional customs authority has been deleted.    

Effect of the Notification: Para 4.14 of FTP 2015-2020 has been amended to remove pre-import condition to avail exemption from Integrated Tax and Compensation Cess and exemption from Integrated Tax and Compensation Cess has also been extended to deemed supplies.

[Notification No. 53/2015-20]

URL: http://dgft.gov.in/sites/default/files/Notification%20No.%2053%20English%2010-01-2019_0.pdf


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