Restriction on import of Hot Rolled Coils – Importers need not pay for DGFT's Confusion
The other day a Deputy Commissioner of Central Excise now working in an SEZ told DDT that the Commerce Ministry officers are far better than the Revenue officers as their attitude was to basically help the trade and not harass them. To every issue, the Commerce Ministry official would think of a possible way to help the exporter – to give him what he asked for, while revenue officer's attitude was exactly the opposite.
DDT is also aware of an Additional Commissioner boasting that he had listed out of 46 ways of fixing an EOU – he said this when a prospective EOU came up for registration.
A client asked me, “what happens if I make a mistake? ”. I replied, “you have to face the consequences”. “What happens if the Department makes a mistake? ”, he asked me. “YOU have to face the consequences”, I replied.
Vide Notification No. 63 dated 21.11.2008, import of the item “Hot Rolled Coils” under 4 digit ITC(HS) Code : 7208 has been restricted. Intention of the Notification, according to DGFT, was to restrict all items covered under Code No. 7208 at 4 digit level. This was clarified by DGFT, first on 30.01.2009 to an individual importer and then again on 18.02.2009 to a group of Importers and Customs.
It seems during the interim period, i.e. 21.11.2008 (date of issue of Notification No. 63) and 18.02.2009 (date of issue of clarification) a number of import consignments of such items (Hot Rolled Products not in Coils) have been allowed by Customs without licence.
It has also been informed by Customs that there have been clearances in this Group under ITC Bond as it was not clear whether the Notification No. 63 dated 21.11.2008 covered the whole of 7208 or not.
Now to address the grievance of importers, arising out of this confusion, DGFT has clarified that the import clearance without a licence may be allowed for the item, Hot Rolled Products not in Coils covered under ITC( HS) Code 7208, which have been imported during the period 21.11.2008 (date of issue of Notification No. 63) to 18.2.2009 (date of issue of clarification).
This is how the government should work – whatever had been your intention, if it was not clear, give the benefit to the trade instead of bulldozing your way and defending your mistakes.
DGFT Public Circular NO. 83 (RE-2008)/2004-2009 Dated: April 29, 2009