BUDGET RELATED CHANGES IN ICES- ICES ADVISORY - Customs - PUBLIC NOTICE NO. 04/2020

GOVERNMENT OF INDIA MINISTRY OF FINANCE, DEPARTMENT OF REVENUE OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS (AIR CARGO), NEW CUSTOM HOUSE, MEENAMBAKKAM, CHENNAI - 600 016. F. No. S. Misc. 01/2019-20-EDI-ACC Dated 04.02.2020 PUBLIC NOTICE NO. 04/2020 Sub: BUDGET RELATED CHANGES IN ICES- ICES ADVISORY- reg. It is brought to the notice of all the Importers, Exporters, Customs Brokers and all Trade Formations that Union Budget 2020-21 announced on 1st Feb 2020 has introduced some key changes on the customs front. Changes in the duty structure and introduction of new levies has come into effect from 02.02.2020. All the notifications on rate changes have been updated in ICES and is made live from 21 hours on 02-Feb-2020. 2. Customs Health Cess: (i) One of the major changes in the duty structure is introduction of Customs Health Cess on imports vide clause 139 of the Finance Bill,2020. The relevant portion of letter from J.S(TRU) is reproduced for reference: Vide clause of the Finance Bill,2020, Health Cess is being imposed on the import of medical devices falling under heading 9018 to 9022, at the rate of 5% ad valorem on the import value of such goods as determined under section 14 of the Customs Act, 1962. This Health Cess shall be a duty of Customs. (ii) Further, Vide Notification No 08/2020 dt 02.02.2020, exemption on Health Cess has been given on import of certain goods. (Ill) On declaration of the relevant tariff item, health cess will be automatically calculated in the system. (IV) For BE Submissions, Relevant Changes have been made in the Service centre module. While Filing using RES software, following declarations will have to be made in the SBE Duty Tag of the Bill of Entry to claim the above exemption notifications: Notification Type as C and AD Flag as + (V) Necessary changes have also been made in other relevant modules of ICES for facilitating changes in the assessment and duty calculation. The Importers, Customs Brokers and all trade formations are advised to note the above changes and file the declarations correctly. (N. PADMASRI) COMMISSIONER OF CUSTOMS CHENNAI-VIII