Import Duties

The government levies import duties on most of the items imported for trade purposes. These are of different types including Basic Duty, Additional Customs Duty, True Countervailing Duty, Anti Dumping or Safeguard Duty and Education Cess. Details about these can be viewed here.

Payment of Duty

• Provisional Deposit Account with Bank: Facilities are available to debit duty amounts directly from the Banks nominated by Customs. This facility reduces delays in receipt of customs duties from Importers and also payment of interest after 2 days. Importers are required to open a deposit account with the nominated Bank and maintain a minimum balance as per the Banks guidelines. On completion of assessment of the Entries, the importer can authorize debit of the duty amount against authorization slips.
• Payment by Draft/Bankers Cheque: RBI has issued new guidelines to the nominated banks for acceptance of payments against instruments from nationalized banks only.
• Interest: Interest is charged on duties not paid within 2 days.

Bill of Entry

It is a document certifying that the goods of specified description and value are entering into the country from abroad.
If the goods are cleared through the Electronic Data Interchange (EDI) System no formal Bill of Entry is filed as it is generated in the computer system, but the importer is required to file a cargo declaration having prescribed particulars required for processing of the entry for customs clearance
The Bill of entry, where filed, is to be submitted in set, different copies meant for different purposes and also given different colour scheme. Bills of Entry are of three types:-

• Bill of Entry for home consumption
• Bill of Entry for Warehouses
• Bill of Entry for Ex-Bond Clearance

Details about these and the documents to be filed in case of Non-EDI system can be found here.

Green Channel facility

Some major importers have been given the green channel clearance facility. It means clearance of goods is done without routine examination of the goods. They have to make a declaration in the declaration form at the time of filing of bill of entry. The appraisement is done as per normal procedure except that there would be no physical examination of the goods. Only marks and number are to be checked in such cases. However, in rare cases, if there are specific doubts regarding description or quantity of the goods, physical examination may be ordered.

This facility can be claimed by the Importers who have been approved by the Customs as eligible for claiming the facility. Importers having a clean record can apply to the Customs (EDI) with a request for Green Channel facility against a covering letter and enclosing copy of Balance Sheet showing proof of Duty paid in a year.

Dumping

Dumping is said to have taken place when an exporter sells a product to India at a price less than the price prevailing in its domestic market. However, the phenomenon of dumping is per se not condemnable as it is recognized that producers sell their goods at different prices to different market. However, where dumping causes or threatens to cause material injury to the domestic industry of India, the Designated Authority initiates necessary action for investigations and subsequent imposition of anti-dumping duties.

Anti Dumping Guidelines issued by the Government of India must be understood and complied with while carrying out import of goods.

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