Customs - Assessment of Bulk Liquid Cargo Imports
CBEC has decided that in case of all bulk liquid cargo imports, whether for home consumption or for warehousing, the shore tank receipt quantity i.e., dip measurement in tanks on shore into which such cargo is pumped from the tanker, should be taken as the basis for levy of Customs Duty irrespective of whether Customs Duty is leviable at a specific rate or ad-valorem basis [including cases where tariff value is fixed under Section 14(2) of the Customs Act, 1962].
Board also clarifies that where bulk liquid cargo is cleared directly on payment of duty without being pumped in a shore tank, assessment may continue to be done as per ship's ullage survey report at the port of discharge.
Board has rescinded the Circular No. dated 27.12.2002 & Circular No. dated 12.01.2006.
In the Mangalore Refinery and Petrochemicals Limited 2015-TIOL-199-SC-CUS. case, the Supreme Court had held, the quantity of crude oil actually received into a shore tank in a port in India should be the basis for payment of customs duty. This judgement was delivered on 02.09.2015 and now the Board seems to have officially accepted the verdict.
CBEC Circular No. 34/2016-CUSTOMS., Dated July 26, 2016