Import of Non Coking Coal as Coking Coal - Big Haul by Customs
RELIABLE sources inform us that Jamnagar Customs has cracked a case of huge evasion by an importer declaring non-coking coal as coking coal to avail the exemption benefits under Sl.No. 122 of the Notification 12/2012-Cus dated 17-3-2012.
Coking Coal falls under CTSH 2701 1910, and attracts 'nil' rate of basic customs duty, if the explanation in sl. no. 122 is satisfied, i.e. the coking coal should have the reflectance more than 0.60 and CSN of 1 and above. If any of the conditions are not satisfied, the Coking Coal would fall under Sl. No. 124 and would attract 5% Basic Customs Duty, besides other duties.
S. No | Ch.SH | Description | Std Rate | Addl rate | Condition |
122. | 2701 | Coking coal Explanation.- For the purposes of this exemption, "Coking coal" means coal having mean reflectance of more than 0.60 and Swelling Index or Crucible Swelling Number of 1 and above | Nil | - | - |
123. | 27011920 | Steam Coal | Nil | 1% | - |
124. | 2701 11 00, 2701 12 00, 2701 19 | All goods other than those specified at S. Nos. 122 and 123 above. | 5% | - | - |
The Customs Officers based on intelligence detained the entire bulk cargo and got the samples tested. On confirmation, that the imported coal does not conform to the explanation in S. No. 122, they had seized the entire 80,000 MTs. An amount of Rs. 16.60 Crores was also recovered from the importers towards Customs Duties.
This modus operandi was detected by DRI two years ago and it was found that a major steel unit was evading Customs duty since 1999. DRI had also issued a Show Cause Notice.