Clarification in relation to applicability of provisions of Customs Act to Cruise Tourism - Customs - 32/2018-19

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, WILLINGDON ISLAND, COCHIN-682009 An IS 15700 certified custom house Website: www.cochincustoms.gov.in E-mail: [email protected] Control room: 0484-2666422 Fax: 0484-2668468 Ph: 0484-2666861-64/774/776 F No. C1/03/2016 TU.CUS Date: 09.10.2018 TRADE NOTICE NO. 32/2018-19 Sub:- Clarification in relation to applicability of provisions of Customs Act to Cruise Tourism-reg. *********************** Kind attention of all stakeholders is drawn to the Instruction No. 15/2018 dated 04.10.2018 issued by Government of India, Ministry of Finance, Department of Revenue (Central Board of Indirect Taxes Customs). Vide the said Instruction, Board has clarified applicability of provisions of Customs Act to Cruise Tourism. 2. While no Customs officer will escort the Cruise Ship on the domestic legs, this will not preclude the jurisdictional Chief Commissioner to send an escort in situations where there is necessity to do so. 3. Cruise ships have the legal obligation to pay the Customs duty and Customs will go by the self-assessment and declaration of cruise vessels regarding consumption of products. 4. including alcohol and on payment of appropriate duty thereon. Domestic passengers sailing on domestic sector are not entitled to buy any duty free products on the Cruise ship and in case where such passengers make any on board purchases, they will have to pay appropriate customs duty when they disembark at the next port. 5. The international passengers and tourists will be entitled to avail baggage allowance as per Baggage Rule, 2016. 6. The definition of Indian Customs waters has been extended upto EEZ in finance Act, 2018. `Indian Customs Water' finds mention in various sections of Customs Act primarily related to enforcement Dutiability of an imported product is governed by Section 12 of the Customs Act which is unaffected by the impact of said amendment. A cruise vessel calling on an Indian port would, therefore, be liable to pay duty on liquor and other consumed stores during its transit through territorial waters or its period of stay at port in India. Mere passage through Indian customs water without calling on at any of the Indian ports would not attract Customs duties. 7. Consequent to the above mentioned changes, all the stakeholders are required to take cognisance and comply with the same. 8. Hindi version follows. -sd- (sumit kumar) Commissioner of customs