CBIC laid down certain conditions to avail the benefit of deferred payment of Customs Import Duty to ‘Authorised Public Undertakings’ (APU)

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Notification And Circular, Notification and Circular

Background:

The CBIC vide Notification No.78/2020-Customs dated August 19th, 2020 has permitted ‘Authorised Public Undertakings’ (APU) to avail the facility of deferred payment of Customs import duty under proviso to sub-section (1) of section 47 of the Customs Act, 1962. The facility of deferred payment of Customs import duty shall be available to Public Undertakings of Central and/or State Government which satisfy the criteria’s as mentioned in Notification No.78/2020.

Clarification:

CBIC vide Circular No. 37/2020 – Customs dated August 19, 2020, that to avail the facility of deferred payment of Customs import duty shall be available to Public Undertakings of Central and/or State Government which satisfy the following conditions:-

  • Must be a Government company as defined in the Companies Act, 2013 or a statutory Corporation, a department or an autonomous body owned and/or controlled by the Central Government and/or State Government.
  • Must possess a valid Importer-Exporter Code (IEC).
  • Must be recommended for availing the said facility by an officer not below the rank of the Deputy Secretary to the Government of India or an officer of equivalent rank in the State Government.
  • Must undertake to comply with the provisions of the Deferred Payment of Import Duty Rules, 2016.
  • Must adhere to legal compliance requirements as per Section 3.2 of revised AEO programme as per Circular No.33/2016-Customs, dated 22nd July 2016, as follows:
  1. There should be no show cause notice issued to them during last three financial years involving fraud, forgery, outright smuggling, clandestine removal of excisable goods or cases where Service Tax/GST has been collected from customers but not deposited to the Government.
  2. There should be no case wherein prosecution has been launched or is being contemplated against the applicant or its senior management.
  3. If the ratio of disputed duty demanded or drawback demanded or sought to be denied, in all the show cause notices issued under the Customs Act, 1962 [other than those mentioned in Para 3(v) (a) and 3(v)(b)] during the last three financial years, to the total duty paid and drawback claimed during the said period is more than ten percent, a review would be taken of the nature of cases and decision would be taken on issue or continuance of AEO status by AEO Programme Manager.

Further, in order to avail the facility of deferred payment of Customs import duty, eligible Public Undertaking shall apply to the Principal Commissioner/Commissioner, Directorate of International Customs (DIC), CBIC in the form as per Annexure-I (Application for Approval as Authorised Public Undertaking), the Principal Commissioner/Commissioner, DIC, CBIC shall approve the applicant as an ‘Authorized Public Undertaking’ eligible for availing the benefit of deferred payment of Customs import duty.

Further, the facility shall be available for 2 years later on extendable for 2 years at a time.  At the time of granting approval, the Principal Commissioner/Commissioner, DIC, CBIC shall update the details in the Customs Automated System to enable the facility of deferred payment of duty. No further action will be required by the APU in order to avail the facility.

The Principal Commissioner/Commissioner, DIC, CBIC, the nodal person appointed/authorized by the APU shall obtain ICEGATE login following the procedure laid down in Advisory on www.icegate.gov.in.

The due dates for making the deferred payment of Customs import duty are specified in rule 5 of the Deferred Payment of Import Duty Rules, 2016 , are reproduced for reference as follows :

  1. 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 16th day of that month;
  2. 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 1st day of the following month; and
  3. For goods corresponding to Bill of Entry returned for payment from 16th day till the 31st day of March, the duty shall be paid by the 31st March.

The Principal Commissioner/Commissioner of Customs may monitor the same for imports pertaining to his jurisdiction and ensure timely payment of the Customs import duty as per the said Rules. Instances of non-payment may be brought to the notice of the Principal Commissioner/Commissioner, DIC, CBIC may revoke such approval granted, if the APU becomes ineligible for the facility of deferred payment of Customs import duty at any point in time.

Note: Rule 4 of the Deferred Payment of Import Duty Rules, 2016 is been Omitted. Accordingly, para 3 of Circular No.52/2016-Customs, dated 15.11.2016 stands deleted.

The Circular can be accessed at: www.cbic.gov.in/resources/htdocs-cbec/customs/cs-circulars/cs-circulars-2020/Circular-No-37-2020.pdf.

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