Customs - Deferred Payment of Customs Duties
AS per the standards stipulated by the The International Convention on the Simplification and Harmonization of Customs procedures (Kyoto Convention),
1. Where national legislation provides for the deferred payment of duties and taxes, it shall specify the conditions under which such facility is allowed.
2. Deferred payment shall be allowed without interest charges to the extent possible.
3. The period for deferred payment of duties and taxes shall be at least fourteen days.
"Standard" means a provision the implementation of which is recognized as necessary for the achievement of harmonization and simplification of Customs procedures and practices.
In his Budget 2016 speech, the Finance Minister said in para 179:
179. Our Government has taken a number of steps to reduce the cargo release time and the transaction costs of EXIM trade. I propose to amend the Customs Act to provide for Deferred Payment of customs duties for importers and exporters with proven track record.
Accordingly, Sections 47, 51 and 156 of the Customs Act were amended to stipulate that the Central Government may, by notification in the Official Gazette, permit certain class of importers to make Deferred Payment of said duty or any charges in such manner as may be provided by rules; it was also provided for making rules for manner of making Deferred Payment of duties, taxes, cesses or any other charges under sections 47 and 51.
Now, the Government has notified the Deferred Payment of Import Duty Rules, 2016.
The due dates for payment of duty by an eligible importer are:
(a) for goods corresponding to Bill of Entry returned for payment from 1st day to 15th day of any month, the duty shall be paid by the 17th day of that month;
(b) for goods corresponding to Bill of Entry returned for payment from 16th day till the last day of any month other than March the duty shall be paid by the 2nd day of the following month;
(c) for goods corresponding to Bill of Entry returned for payment from 16th day till the 29th day of March, the duty shall be paid by the 31st March;
(d) for goods corresponding to Bill of Entry returned for payment from 30th day of March to 31st day of March, the duty shall be paid by the 2nd April.
The duty has to be paid electronically and if there is a default more than once in three consecutive months, this facility of deferred payment will not be allowed unless the duty with interest has been paid in full.
By another notification, the Government has made Importers certified under Authorized Economic Operator programme as AEO (Tier-Two) and AEO (Tier-Three), as eligible importers for the deferred payment of duty scheme.
Notification No. , Dated: November 2, 2016
Notification No. , Dated: November 2, 2016