Cricket – World Cup 2011 - Customs Exemption to BCCI, but Board Forgets Circular
THE Cricket World Cup 2011 is slated to start on 19 February and the Grand Finale will be at Mumbai on 02 April 2011. This would perhaps be the last world cup match for the greatest cricketer – our own little master.
Government is not a spoilsport and has granted Customs Duty exemption to Sport equipments; Medical instruments; Photographic and audio-visual equipment and supplies; Broadcast equipment and supplies; Computer and other office equipment; imported by the Board of Control for Cricket in India (BCCI) or by any importer authorized in writing by BCCI in relation to World Cup, 2011.
And as usual bureaucracy cannot give anything without impossible conditions: There are two here.
1. Importer, at the time of clearance of the goods shall furnish a bond for the value of the imported goods supported by a bank guarantee to the extent of twenty five percent of the said value, to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs, undertaking that all such goods shall be re-exported within three months from the date of official closure of the World Cup and shall pay an amount equal to the duty leviable on the imported goods but for the exemption under this notification in the event of failure to do so; and
2. Such goods shall be imported and re-exported from the sea ports at Mumbai or Chennai, Inland Container Depot at Tuglakabad or airports at Mumbai, Chennai or Delhi.
Most probably nobody will get the benefit of this exemption.
When will they get the authorization from BCCI, where will they get the Bond and who will give them bank guarantees. Two more World Cups will be over before they get over the Customs tangle in India. As a part of its public service, Board should have kept this notification as a top secret so that no unsuspecting innocent sports lover would try to avail it and get entangled for life.
Beware: Anyone availing this notification is bound to be lost in the maze of Indian Litigation for the next twenty years.
The Board in Circular No. 5/2011 – Cus Dated January 17, 2011 had informed that, “henceforth BCCI would not be eligible to avail itself of duty exemption under Notification No.21 /2002- Cus. dated 1.3.2002 or any other Customs notification. Thus, goods imported by BCCI or certified by BCCI for import are not entitled to any exemption benefit which is available to sports goods / equipment / consumables imported or certified by a National Sports Federation (NSF) or Apex body in terms of any Customs duty exemption notification issued by the Central Government. ”
Based on this Circular, most probably, the Customs officers will not allow the exemption for the BCCI World Cup 2011 imports. If they really don't allow the exemption, the importers should be very happy, but God forbid, if they do. Your Bank Guarantee would be encashed and there will be Show Cause Notices which will have to be finally decided in the Supreme Court.
It happens only in India!
NOTIFICATION NO. .,Dated: February 09, 2011