4% duty – 100% doubts
For the last twenty days we have been flooded with mails with doubts and apprehensions about the 4% additional duty. Apart from the additional burden right across the Board, what worries the stake holders is the absolute lack of clarity and the Board’s silence. The Notification No. 29/2006 has amended Notification No. 20/2006 to withdraw the exemption from this 4% to several products covered under various notifications. This has led to some comical situations.
A Superintendent working in a remote Nepal Border Customs Station wrote to us,
Earlier it was implemented only on dutiable goods and the goods with NIL rate of duty were exempted from this 4%. But now the notification 29/2006-Cus dated 20.03.2006 came. During discussion among our selves it appeared first that the 4% ACD is not applicable on goods being imported from Nepal, Bhutan, Bangladesh. But later on we found that as per the provisions of notifn.no. -29/2006-cus dated 20-03-06, ACD @4% Ad-Val. is imposed on all goods imported irrespective of the fact that the goods are exempted from BCD as well as ACD under Sec.3(1) of CTA'75.The words used and added in Notifn. 20/2006-cus. dated 01-03-06 that ' Nothing contained in this notification shall apply----'vide Notifin. No. 29/2006-cus dated 20-03-06, is confusing the matter. Since Notifn. No. 20/-2006 - Cus dated 01-03-06 is a notification extending exemption from payment of ACD under Sec.3(5) of the CTA'75,the words used 'nothing contained in the notification shall apply----' shall mean that no exemption is being granted to the goods if imported from the countries mentioned in the annexed notifications.