Budget Related Changes In ICES - Customs - Public Notice No. 52/2017

OFFICE OF THE COMMISSIONER OF CUSTOMS (IMPORT) EDI SECTION, AIR CARGO COMPLEX, SAHAR, ANDHERI (EAST), MUMBAI 400 099 F. No. S/3-Misc-PRO-89/2017-18 ACC(I) Date:-05.02.2018 Public Notice No. 52/2017 Sub: Budget Related Changes In ICES-reg. Attention of all. Importers, Customs Brokers, Members of the Trade industry Associations, Customs Officers and others is invited towards the Union Budget 2018-19. Union Budget 2018-19 announced on IA Feb, 2018 has introduced some key change on the customs front. While some legislative changes like duty ledger, system release of goods etc. shall come into effect from a date to be notified, changes in the duty structure and introduction of new levies has come into effect from the midnight of 01.02.2018. All the notification on rate changes have been updated in ICES. 2. The two major changes in the duty structure are as follows: I. Introduction of Social Welfare Surcharge on imports vide 108 of the Finance Bill 2018 in place of Education/SH Education Cess. II. Introduction of Road and Infrastructure Cess vide clause 109 of the Finance Bill 2018 on goods specified in the Sixth Schedule of the Bill. a. Social Welfare Surcharge (SWS) Social Welfare Surcharge has been levied on the aggregate of all duties of customs except those listed in sub-clause 3 of clause 108. The value for Social Welfare Surcharge shall therefore be the same as that of the Education cess/SH Education the rate of Social Welfare Surcharge been fixed at 10% by the Finance Bill. 11/2018- Cus and 12/2018-Cus, both dated 02.02.2018 exempt Social Welfare Surcharge on the listed items partially or fully. ICES 1.5 has been updated with all the rates notifications. The system shall levy the default surcharge rate of 10% automatically on all goods. To claim exemption, the notification details can be entered in item table at 37 and 38 positions (of the BE message format), i.e. in lieu of erstwhile Education cess on CVD. b. Road and Infrastructure Cess The Road and Infrastructure Cess is levied at a specific rate of ₹ 8 per litre of Motor Spirit and High Speed Diesel. Under clause 109 of the Finance Bill the Cess has been levied as an additional duty of Customs. The Cess levied under Clause 110 as an additional duty of excise has been exempted from CVD vide Notification 21/2018 - cus. The new Rod and Infrastructure Cess has come in lieu of the erstwhile Rood Cess applicable on the scheduled goods. Correspondingly, the basic excise duty on MS and HSD has been so as to keep The overall duty on these products (both excise as well as customs) unchanged. A sample Comparative calculation has been given in Annexure II of the D.O. from JS (TRU-I). ICES 1.5 has been updated to automatically apply the Cess of ₹ 8 per Litre on the scheduled goods. The above changes may be made note of and BES may be filed accordingly. 3. Difficulties, if any, feed in the implementation of this Public Notice may be brought to the notice of the undersigned. 4. This issues with approval of the Commissioner of Customs (Import), ACC, Mumbai. (Sukhjit Kumar) Addl. Commissioner of Customs (PRO Cell)(Import) Mumbai