Notification 36/2001- Cus(NT) dated 3rd August 2001 - Clarification Rgd - Customs - 046/01

Circular No. 46/2001-CUS.V 10th August, 2001 F.No.467/77/2001-Cus.V(Pt.) Ministry of Finance Department of Revenue Central Board of Excise Customs Custom V Sub: Notification 36/2001- Cus(NT) dated 3rd August 2001 - Clarification Rgd. Attention is invited to Notification 36/2001-Cus(NT), dated 3rd August 2001, issued by the Central government laying down tariff values in respect of Crude Palm Oil, RBD Palm Oil, and RBD Palmolein falling under Chapter 15 of the First Schedule to the Customs Tariff Act, 1975. Certain doubts appear to have been raised in trade industry circles in regard to date of effect of these tariff values specially w.r.t. consignments which have already arrived and are pending clearances for home consumption - whether from the port/ air cargo/ ICDs etc. or from warehouses. Some doubts on other related issues are also being raised. These have been examined and I am directed to clarify the position as follows:- (i) As the notification has been issued by the Central Government for publication in the Gazette of India Extraordinary, on 3rd August, the said notification becomes effective from 3rd August, 2001 itself; (ii) The tariff values laid down in the said notification are values to be taken for assessment purposes and are thus inclusive of insurance, freight, and landing charges; (iii) Section 15 of Customs Act, 1962 lays down the crucial date for determination of Tariff Valuation (apart from rate of duty) - except for baggage imports by post. Thus, where Bills of entries for home consumption have been filed under Section 46 before 3rd August, then Tariff Values will not be applicable - unless it was a prior entry bill of entry filed before entry inwards of the vessel. In the later category of cases, it is the date of entry inwards which is crucial for applying Tariff Values. Thus, if entry inwards for the related vessel is 3rd August or later the new Tariff Values fixed for such home consumption bills of entries will apply - even if the Bill of entry may have been filed earlier to 3rd August; (iv) As regards goods cleared from a warehouse under section 68 of the Customs, 1962, Section 15(1)(b) of the Customs Act applies. Thus, if the actual clearances from a warehouse take place on or after 3rd August, Tariff Values will be applicable for determining value for assessment purposes - even if ex-bond bill of entry may have been presented earlier to 3rd August, 2001; (v) For the purposes of conversion of the Tariff Values as notified in US$ into Indian rupees, the rate of exchange applicable shall be the rate notified by the Central Government in the Department of Revenue from time to time (under sub-clause (i) of clause (a) of sub-section (3) of section 14 of the Customs Act, 1962) and as in force on the date on which the bill of entry is presented under section 46 of the Customs Act. 2. Any difficulty faced in the implementation of the notification may be brought to the notice of the Board.