Wrong availment of Customs Duty Exemption on import of Cash Dispenser Machines declared as “ATM” – DRI Alert
As per Notification No. 25/2005- Customs Dated 01.03.2005, Automatic Teller Machines ( ATM ) of Sub- Heading 847290 are exempted.
It has come to the notice of DRI that some of the importers have availed the duty exemption on “Cash Dispenser Machines” by mis -declaring them as ATM, which are otherwise chargeable to merit rate of duty and no exemption from customs duty is admissible on them.
A Cash Dispenser Machine is distinct from an automated Teller Machine (ATM) since the former can only dispense cash and cheques. Accordingly, these two are functionally different and duty exemption granted on imports of ATM is not applicable to Cash Dispenser Machines.
So DRI wants the field to review all past clearances of Cash Dispenser Machines misdeclared as ATMs, where duty exemption has been claimed under Notification 25/2005-Customs dated 1.3.2005, either inappropriately or through mis -declaration.
DRI wants suitable corrective action to be initiated, wherever necessary.