Notes 03 - Notes on clauses - Customs - Finance Bill, 2013

Customs Clause 54 seeks to amend clause (n) of sub-section (2) of section 11 to include designs and geographical indications along with patents, trademarks and copyrights to enable the Central Government to prohibit either absolutely or conditionally the import or export of goods to protect these legal rights. Clause 55 seeks to amend section 27 to provide that if the amount of claim is less than rupees one hundred, the same shall not be refunded. Clause 56 seeks to amend sub-section (1) of section 28 to provide that the proper officer shall not serve a show cause notice, where the amount involved is less than rupees one hundred. Clause 57 proposes to amend section 28BA to include notices issued under sub-section (4) of section 28, in addition to notices issued under sub-section (1) of section 28 for recovery of duties. Clause 58 of the Bill seeks to substitute clause (a) of section 28E of the Customs Act, for the purpose of expanding the scope of activity of import or export so as to include any new business of import or export by an existing importer or exporter in order to enable such importer or exporter to seek advance ruling before the Authority for Advance Rulings. Clause 59 proposes to amend section 29 to empower Board to allow landing of aircrafts and vessels at any place other than customs airports or customs ports. Clause 60 proposes to amend section 30 to provide for electronic filing of import manifest and to insert a proviso that where this is not feasible, the Commissioner of Customs may allow the delivery of such manifest in any other manner. Clause 61 proposes to amend sub-section (1) of section 41 to provide for electronic filing of export general manifest and to insert a proviso that where this is not feasible, the Commissioner of Customs may allow the delivery of such manifest in any other manner. Clause 62 seeks to amend sub-section (2) of section 47 to reduce the interest free period for payment of customs duty from five days to two days. Clause 63 seeks to amend section 49 to provide that goods may be permitted to be stored for a period not exceeding thirty days in a public warehouse and the private warehouse in the interest of accountability and early finalization of assessment and to insert a proviso that the Commissioner of Customs may extend the period of storage for a further period not exceeding thirty days at a time. Clause 64 proposes to substitute clause (a) of sub-section (1) of section 69 to provide that any warehoused goods may be exported to a place outside India without payment of import duty if a shipping bill or bill of export in prescribed form or label or declaration accompanying the goods as referred to in section 82 has been presented in respect of such goods. Clause 65 of the Bill seeks to substitute sub-section (6) of section 104 of the Customs Act with new sub-sections (6) and (7) so as to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, an offence under section 135 and relating to evasion or attempted evasion of duty exceeding fifty lakh rupees, or prohibited goods notified under section 11 which are also notified under sub-clause (C) of clause (i) of subsection (1) of section 135, or import or export of any goods which have not been declared in accordance with the provisions of the Act and the market price of which exceeds one crore rupees, or fraudulently availing of or attempt to avail of drawback or any exemption from duty provided under the Act, if the amount of drawback or exemption from duty exceeds fifty lakh rupees, shall be non-bailable and also to provide that all other offences under the Act shall be bailable. Clause 66 of the Bill seeks to insert a new proviso after the second proviso in sub section (2A) of section 129B of the Customs Act, so as to stipulate that on an application made by a party and on being satisfied that the delay in disposing of the appeal is not attributable to such party, the Appellate Tribunal shall have power to extend the period of stay to such further period, as it thinks fit, not exceeding one hundred and eighty-five days, and in case the appeal is not so disposed of within the total period of three hundred and sixty-five days from the date of order referred to in the first proviso, the stay order stands vacated. Clause 67 seeks to amend section 129C of the Customs Act, with a view to enhance the monetary limit of the Single Bench of the Appellate Tribunal to hear and dispose of appeals from ten lakhs rupees to fifty lakhs rupees . Clause 68 of the Bill seeks to amend sub-clauses (B) and (D) of clause (i) of sub-section (1) of section135 of the Customs Act so as to increase the threshold limit for punishment with imprisonment up to seven years and with fine, from thirty lakh rupees to fifty lakh rupees. Clause 69 of the Bill seeks to amend sub-section (1) of section 142 of the Customs Act, by inserting a new clause (d) therein to provide for recovery of any amount due to the Central Government. It provides that in case of dues of customs, the proper officer may require any person (third party) from whom the amount is due or may become due to the defaulter, to pay to the Central Government so much of the amount as is sufficient to pay the amount due. Clause 70 seeks to omit section 143A since the same has become redundant as the export promotion schemes have undergone a complete change. Clause 71 seeks to amend section 144 to provide that there shall be no liability of duty on any goods consumed as samples during testing or examination. Clause 72 seeks to subsitute section 146 with new section 146 so as to substitute the words customs house agents with the words customs brokers considering the global practice and internationally accepted nomenclature. Clause 73 seeks to amend clause (b) of sub-sections (2) and (4) respectively of section 146A which is of consequential nature in view of the amendment of section 146 and also to include any offence committed under the Finance Act, 1994 as a disqualification for person to act as an authorised representative in customs matters. Clause 74 seeks to amend sub-section (3) of section 147 to provide that the agents are equally liable for any act or omission when the agent is expressly or impliedly authorised by the owner, importer or exporter of any goods to be his agent in respect of such goods for all or any of the purposes of the Act. Clause 75 of the Bill seeks to amend the notification issued under sub-section (1) of section 25 of the Customs Act bearing number G.S.R. 153(E), dated the 1st March, 2011 in the manner specified in the Second Schedule so as to amend the said notification retrospectively to subsitute the entry in column (2) against Sl. No. 56 with the entry 7210, 7212 and to refund all such duty of customs which has been collected but which would not have been so collected had the notification been in force at all material times and an application for the claim of refund of duty of customs shall be made within six months from the date on which the Finance Bill, 2013 receives the assent of the President.