EXPORT DUTY ON IRON AND STEEL – BOARD CLARIFIES
Export duty has been imposed on specified iron and steel items w.e.f 10.5.2008. The effective rates of export duty on various items have been prescribed through Notification No. 66/2008-Customs dated 10.5.2008.
The relevant entries in the Second Schedule as well as the notification specify only the product description to which the export duty is meant to apply. Representations have been received in the Board that there is lack of clarity about the scope/coverage of these entries and customs formations have sought to charge export duty on items such as forgings of iron and steel, structures and articles.
The Second Schedule to the Customs Tariff Act, 1975 (i.e. the Export Schedule) is not aligned with the Harmonized System of Nomenclature (HSN) as a result of which it has not been possible to indicate the corresponding heading no/ sub-heading no. of the HSN in notification No.66/2008-Customs. However, the description of the relevant entries have been borrowed from the First Schedule or the Import Schedule.
Since there is already a practice of asking the exporter to declare the six-digit classification on the Shipping Bill, the information provided in the Table can easily be used to determine whether or not export duty is applicable in a particular case. Further, the classification of various items in the First Schedule to the Customs Tariff Act is not a matter of any doubt, as the relevant principles are clearly announced in the Rules for interpretation of the First Schedule. The same guiding principles may be followed by assessing officers in deciding whether a particular iron/steel product will attract export duty or not.
So the Board cannot classify the product but wants the field to do it.
CBEC F. No. 3414/41/2008- TRU, Dated: June 3, 2008