Budget 2020-21 - imposition of Custom Health Cess on imports - Customs - PUBLIC NOTICE No. 06/2020

OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOM HOUSE PORT AREA VISAKHAPATNAM - 530 035 F. No. P3/20/2019-Stats Date: 06.02.2020 PUBLIC NOTICE No. 06/2020 Subject:- Budget 2020-21 - imposition of Custom Health Cess on imports- reg. 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. ICES Advisory 05/2020 dated 02.02.2020 has also been issued in this regard. 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. Vide clause of the Finance Bi//,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 sha// 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. (iii) 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 Fling 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. 3. Since the notification has been completed and integrated late on 02-Feb-2020 in the system, it is also requested to check the correctness of duty calculation for the bills of entry which were cleared on 02-Feb-20. 4. All the trade may aware of the above changes and declarations are filed correctly and any errors in old bills filed if not rectified may be brought to the notice of the concerned Dy./Assistant Commissioner (Group). The content of this Public Notice should be considered as Standing Order for the purpose of officers and staff. 5. Considering that the above new levy brings a calculation change in the duty logic, the imposition of the Health Cess on the relevant goods and the calculation of duty by the System may also be verified manually for the first few days. Any discrepancy found may immediately be brought to the notice of the Asst. Commissioner(EDI) or by email to [email protected]. (Dr. D. K. Srinivas) Pr. Commissioner of Customs