Budgetary changes in respect of notification Nos. 18/2014-Customs and 19/2014-Customs were issued - Customs - 33/2014

OFFICE OF THE COMMISSIONER OF CUSTOMS (I G) NEW CUSTOM HOUSE, NEAR IGI AIRPORT NEW DELHI-110037 C. No. VIII (12) I G/Tech/ 121/2012-21059 to 21083 Dated 22/07/14 PUBLIC NOTICE NO. 33/2014 All concerned are hereby informed that the budgetary changes in respect of Notification Nos. 18/2014-Customs and 19/2014-Customs were issued withdrawing the exemptions given vide Notification Nos. 13/2012-Customs and 14/2012-Customs for certain electronic goods, have been effected as under: A. For Bills of Entry filed on after 13.07.2014: It is informed that Education Cess and Secondary Higher Education Cess on CVD was exempted for all goods vide Notification Nos. 13/2012 -Customs 14/2012-Customs , respectively. Hence, no additional field was provided in the Bills of Entry format to claim exemption from Education Cess and Secondary Higher Education Cess on CVD. In this Union Budget, Notification Nos. 18/2014-Customs and 19/2014-Customs were issued withdrawing the exemption given vide Notification Nos. 13/2012 -Customs and 14/2012 -Customs for certain electronics goods. Hence, to incorporate such changes, new Column has been introduced in the Bills of Entry Format/ Assessment to enable importers to claim exemption from this levy based on Notification Nos. 13/2012-Customs and 14/2012-Customs , read with Notification Nos. 18/2014 and 19/2014-Customs . In the revised procedure, Education Cess and Secondary Higher Education Cess on CVD will be levied on all goods by default. Importers who are eligible may claim exemption in the new column by quoting 013/2012 SI. No. 1. It is to be noted that by quoting 013/2012 SI. No. 1, both Education Cess and Secondary Higher Education Cess with be exempted. So there is no necessity of claiming Notification No. 14/2012 for exemption of Secondary Higher Education Cess separately. B. Bills of Entry filed on 11.07.2014 and 12.07.2014. The above said changes in the ICES 1.5 system are incorporated since 13.07.2014. in case of the Bills of Entry filed before 13.07.2014, Education Cess and Secondary Higher Education Cess on CVD imposed by Notification Nos. 18/2014-Customs and 19/2014-Customs withdrawing the exemptions given vide Notification Nos. 13/2012 -Customs and 14/2012-Customs for certain electronic goods is required to be paid manually. Further, Education Cess and Secondary Higher Education Cess on CVD will also increase the amount of 4% SAD payable on the goods. It is advised that importers importing the goods under these Notifications shall ensure payment of correct Education Cess and Secondary Higher Education Cess and 4% SAD through manual challans, in addition to the duties calculated by the system. It may be noted that 4% SAD is being calculated by the system without the Education Cess and Secondary Higher Education Cess component of Central Excise. But the differential portion of 4% SAD on the manually calculated Central Excise Cesses, are also to be collected manually. Otherwise it is advisable to recall the Bills of Entry filed on 12.07.2014 and reassess them for correct payment of the Education Cess and Secondary Higher Education Cess on CVD imposed by Notification Nos. 18/2014-Customs and 19/2014-Customs withdrawing the exemptions given vide Notification Nos. 13/2012 -Customs and 14/2012-Customs for certain electronic goods and consequent changes in the 4% SAD payable on these goods. These changes have resulted in modification of BE message format. Updated BE message format is placed at ICGATE website for information. The importers may need to revise private RES packages being used by them to file Bills of entry remotely. (NEETA LALL BUTALIA) COMMISSIONER OF CUSTOMS (IMPORT GENERAL)