Adoption of uniform Customs Procedure for calculating contents of Iron Ore - CBEC clarifies
IT seems divergent practices are being followed in different ports for calculation of iron contents for charging Export duty. Two types of calculation methods are being followed i.e. on the basis of Wet Metric Ton (WMT) and other on the basis of Dry Metric Ton (DMT).
To maintain uniformity in all Custom Houses, CBEC clarifies that for the purpose of charging of export duty the assessment of Iron ore for determination of Fe contents shall be made on Wet Metric Ton (WMT) basis which in other words mean deducting the weight of impurities (inclusive of moisture) out of the total weight/Gross Weight to arrive at Net Fe contents.
In case of any difficulty in arriving at the net Fe content, assessment may be based on test result, which directly determines the Fe contents.
Pending assessments on the issue, if any, should be finalized accordingly.
Circular No. , Dated : February 17, 2012