Notes-02 - Notes on clauses-Customs - Finance Bill, 2016

Customs Clause 113 of the Bill seeks to amend section 2 of the Customs Act so as to (i) substitute clause (43) thereof to redefine the expression warehouse ; (ii) omit clause (45). Clause 114 of the Bill seeks to amend the Chapter heading of Chapter-III of the Customs Act. Clause 115 of the Bill seeks to omit section 9 of the Customs Act. Clause 116 of the Bill seeks to amend section 25 of the Customs Act, so as to substitute sub-section (4) thereof to provide that every notification issued under sub-section (1) or sub-section (2A) shall, unless otherwise provided, come into force on the date of its issue by the Central Government for publication in the Official Gazette. It is further proposed to omit sub-section (5) thereof. Clause 117 of the Bill seeks to amend section 28 of the Customs Act so as to provide for recovery of duty in situations where the duty has been levied but not paid or has been short-paid also. This clause further seeks to extend the limitation period for investigation of cases not involving any collusion, wilful misstatement or suppression of facts from one year to two years. Clause 118 of the Bill seeks to insert a proviso in sub-section (1) of section 47 of the Customs Act so as to empower the Central Government to permit certain class of importers specified by notification to make deferred payment of duty or other charges in the manner provided by the rules. It also seeks to amend sub-section (2) of the said section to empower the Central Government to fix the rate of interest not below ten per cent. and not exceeding thirty-six per cent. per annum where importer fails to pay import duty either in full or in part within two days from the date specified therein. Clause 119 of the Bill seeks to renumber section 51 of the Customs Act as sub-section (1) thereof and to insert a proviso in sub-section (1) so as to empower the Board to permit certain class of exporters specified by notification to make deferred payment of duty or any charges in the manner provided by rules. It also seeks to insert a new section therein to empower the Central Government to fix the rate of interest not below five per cent. and not exceeding thirty-six per cent. per annum where the exporter fails to pay export duty either in full or in part within the date specified by rules. Clause 120 of the Bill seeks to substitute section 53 of the Customs Act so as to enable the proper officer to allow transit of certain goods and conveyance without payment of duty, subject to the conditions specified by the Board by regulations. Clause 121 of the Bill seeks to substitute a new section for section 57 of the Customs Act so as to vest with the Principal Commissioner of Customs or Commissioner of Customs the power to license a public warehouse. Clause 122 of the Bill seeks to substitute new sections 58, 58A and 58B for section 58 of the Customs Act. The proposed section 58 seeks to vest with the Principal Commissioner of Customs or Commissioner of Customs, the power to license a private warehouse. The proposed section 58A seeks to vest with the Principal Commissioner of Customs or Commissioner of Customs the power to license a special warehouse wherein dutiable goods may be deposited and such warehouse shall be caused to be locked by the proper officer and no person shall enter the warehouse or remove any goods therefrom without the permission of proper officer. The proposed section 58B seeks to vest with the Principal Commissioner of Customs or Commissioner of Customs the power to cancel a licence granted under section 57 or section 58 or section 58A, if the licensee has contravened any provision of the Act or the rules or regulations made thereunder or breached any of the conditions of the licence. Clause 123 of the Bill seeks to substitute a new section for section 59 of the Customs Act, so as to provide that the importer of goods shall execute a bond and also furnish security in the manner specified therein. Clause 124 of the Bill seeks to substitute new section for section 60 of the Customs Act. The proposed sub-section (1) of section 60 seeks to provide for permission for removal of goods from a customs station for the purpose of deposit in a warehouse. The proposed sub-section (2) of said section seeks to provide for the deposit of goods in a warehouse pursuant to an order made under sub-section (1). Clause 125 of the Bill seeks to substitute a new section for section 61 of the Customs Act so as to specify the period for which goods may remain warehoused. Clause 126 of the Bill seeks to omit sections 62 and 63 of the Customs Act. Clause 127 of the Bill seeks to substitute a new section for section 64 of the Customs Act so as to make provisions for owner s right to deal with warehoused goods. Clause 128 of the Bill seeks to amend section 65 of the Customs Act so as to substitute certain words therein. Clause 129 of the Bill seeks to amend section 68 of the Customs Act so as to (i) substitute certain words therein; (ii) substitute a new clause for clause (b) to provide that any warehoused goods may be cleared from the warehouse for home consumption if the import duty, interest, fine and penalties payable in respect of such goods have been paid; (iii) omit the words rent, interest, other charges and occurring in the first proviso to that section. Clause 130 of the Bill seeks to amend section 69 of the Customs Act so as to, (i) substitute the word exportation with the word export ; (ii) substitute a new clause for clause (b) of sub-section (1) to provide that warehoused goods may be exported to a place outside India without payment of import duty if the export duty, fine and penalties payable in respect of such goods have been paid. Clause 131 of the Bill seeks to amend section 71 of the Customs Act so as to substitute the word re-exportation with the word export . Clause 132 of the Bill seeks to amend sub-section (1) of section 72 of the Customs Act so as to (i) omit clause (c); (ii) substitute the word exportation with the word export ; (iii) substitute certain words in the long line. It also seeks to amend sub-section (2) thereof to substitute the word select with the words deem fit . Clause 133 of the Bill seeks to amend section 73 of the Customs Act so as to insert the word transferred or after the words exported or . Clause 134 of the Bill seeks to insert a new section 73A of the Customs Act so as to provide for the custody and removal of warehoused goods. Clause 135 of the Bill seeks to insert sub-clause (c) in subsection (2) of section 156 of the Customs Act so as to empower the Central Government to make rules to provide for the due date and the manner of making deferred payment of customs duties, taxes, cess or any other charges. Clause 136 of the Bill seeks to amend the notifications issued under sub-section (1) of section 25 of the Customs Act vide numbers G.S.R. 367 (E) , dated the 27th April, 2000; 292(E), dated the 19th April, 2002; 281 (E), dated the 1st April, 2003; 604 (E), dated the 10th September, 2004; 606(E), dated the 10th September, 2004; 260 (E), dated the 1st May, 2006 in the manner specified in the Second Schedule retrospectively from the date respectively specified against them in column (4) of that Schedule, so as to correct the reference to section 8 in those notifications as section 8B .