Customs Duty Exemption Extended to Import Raw Sugar & Pulses
THE Government has extended customs duty exemption benefit to pulses falling under Chapter 0713 mentioned at S. No. 11A of Notification 21/2002-Cus by one more year (till March 31, 2011) by amending clause (f) of the proviso to preamble of the said Notification.
Further, the Government has decided to extend customs duty exemption benefit for raw sugar if imported by a ‘bulk consumer' till December 31, 2010 subject to certification by a Chartered Accountant as specified in the newly inserted Condition 5C therein.
With this the Government has replaced the erstwhile stringent conditions of Condition 5A, which expired on March 31, 2010.
In terms of Condition 5A (which expired on March 31, 2010), a person other than a sugar factory or a sugar refinery, was required to produce a valid contract with a sugar factory or sugar refinery and also furnish a bond to the Assistant/Deputy Commissioner of Customs that the raw sugar shall be used for the said purpose. This bond was to be discharged on production of a certificate from the Central Excise authorities having jurisdiction over such sugar factory/refinery within a period of three months from the date of import of raw sugar that the entire quantity of imported raw sugar has been refined. Failure to comply with these conditions resulted in foregoing the duty exemption benefit.
However, under the new Condition 5C, the importer at the time of import shall produce a certificate from a Chartered Accountant to the effect that he is a bulk consumer and the said certificate shall be issued by the Chartered Accountant after taking into account the monthly use or consumption of sugar by such person, establishment or unit in the last twelve months.
‘Bulk Consumer' is defined as “a person, establishment or industrial unit using or consuming more than ten quintals of sugar per month as a raw material for production or consumption or use in any manner other than sale.”
It appears that the Government in its eagerness to bring sugar prices under control is throwing caution to the wind by replacing stringent conditions for persons importing raw sugar in bulk.
Notification No. , Dated : March 31, 2010