Imported Containers -Time Limit for Export
WHEN goods are imported in a container, should customs duty be paid on the container? Obviously yes, because the container is also imported. But by Notification No. 104/94-Cus dated 16.03.1994, Government has exempted containers which are of durable nature provided that the importer, by execution of a bond in such form and for such sum as may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs binds himself to re-export the said containers within six months from the date of their importation and to furnish documentary evidence thereof to the satisfaction of the said Assistant Commissioner and to pay the duty leviable thereon in the event of the importer's failure to do so.
Provided further that in any particular case, the aforesaid period of six months may, on sufficient cause being shown, be extended by the said Assistant Commissioner for such further period, as he may deem fit.
Now, the Commissioner of Customs, JN Customs has decided that in general an imported container may be granted extension for a period of 3 months from the end of 6 months of landing of the container from a ship by the Assistant/Deputy Commissioner for the reasons to be recorded in writing. The extension beyond 9 months may not be granted as a matter of routine. However, incase of genuine difficulty further extension of a period not exceeding 6 months maybe granted by the Joint/Additional Commissioner and further extension of 6 months at a time beyond 15 months may be granted by the Commissioner on merit of each case and for the valid reasons to be recorded in writing. In case of failure to seek extension by giving valid reasons, the imported containers shall be subject to payment of applicable duty, interest & penalty.
The Commissioner directs all concerned to strictly comply with the above instructions failing which, bond will be enforced to recover the Customs Duty along with applicable interest under Section 142 read with Section 143 of the Customs Act,1962. In addition to the above action, penal action may also be initiated in accordance with the Customs Act, 1962.
The notification says that the period of six months may be extended by the Assistant Commissioner. Now can the Commissioner amend this notification to stipulate various authorities for different periods? The Commissioner can certainly exercise the powers of the Assistant Commissioner, but he cannot abrogate the powers of the Assistant Commissioner.
In DDT 2695 30 09 2015, I asked, "Is there any real control over the movement of imported containers and do they really get exported within six months?"
The CAG in its Report No. 13/2015 observed,
The Container Movement Facilitation Centre (CMFC) is responsible for the monitoring of re - export of containers. The present system in the CMFC to know the status of re - export is that they need to verify the entire Main Line Operators (MLO) wise list of containers for each vessel with the IGM number. As the entire process is done manually and each vessel carries a large number of containers belonging to a number of MLOs the entire exercise is very time consuming and cumbersome. It is pertinent to point out that in Chennai Sea Customs on a monthly average about 60 IGM numbers are registered and more than 40000 containers are imported. The situation is worse if the status of a particular container is to be ascertained from the system with the help of a IGM number and container number as it involves verifying every container out of the entire list of containers which runs into hundreds of pages.
Lack of proper monitoring of the re - export of empty containers resulted in the accumulation of the containers causing undue strain on the scarce storage facilities available with the custodians .