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Clarification regarding Notification 36/2001-Cus (NT) dated 3rd August
2001
Circular No. 46 dated 10th August 2001
Attention is invited to Notification
36/2001-Cus(NT), dated 3rd August 2001, issued by the Central government laying
down tariff values in respect of Crude Palm Oil, RBD Palm Oil, and RBD Palmolein
falling under Chapter 15 of the First Schedule to the Customs Tariff Act, 1975.
Certain doubts appear to have been raised in trade & industry circles in
regard to date of effect of these tariff values specially w.r.t. consignments
which have already arrived and are pending clearances for home consumption -
whether from the port/ air cargo/ ICDs etc. or from warehouses. Some doubts on
other related issues are also being raised. These have been examined and I am
directed to clarify the position as follows:
(i) As the
notification has been issued by the Central Government for publication in the
Gazette of India Extraordinary, on 3rd August, the said notification becomes
effective from 3rd August 2001 itself;
(ii) The tariff values laid
down in the said notification are values to be taken for assessment purposes and
are thus inclusive of insurance, freight, and landing charges;
(iii) Section 15 of Customs Act, 1962 lays
down the crucial date for determination of Tariff Valuation (apart from rate of
duty) - except for baggage & imports by post. Thus, where Bills of entries
for home consumption have been filed under Section 46 before 3rd August, then
Tariff Values will not be applicable - unless it was a prior entry bill of entry
filed before entry inwards of the vessel. In the later category of cases, it is
the date of entry inwards which is crucial for applying Tariff Values. Thus, if
entry inwards for the related vessel is 3rd August or later the new Tariff
Values fixed for such home consumption bills of entries will apply - even if the
Bill of entry may have been filed earlier to 3rd August;
(iv) As regards goods cleared from
a warehouse under section 68 of the Customs, 1962 Section 15(1)(b) of the
Customs Act applies. Thus, if the actual clearances from a warehouse take place
on or after 3rd August, Tariff Values will be applicable for determining value
for assessment purposes - even if ex-bond bill of entry may have been presented
earlier to 3rd August 2001;
(v) For the purposes of
conversion of the Tariff Values as notified in US$ into Indian rupees, the rate
of exchange applicable shall be the rate notified by the Central Government in
the Department of Revenue from time to time (under sub-clause (i) of clause (a)
of sub-section (3) of section 14 of the Customs Act, 1962) and as in force on
the date on which the bill of entry is presented under section 46 of the Customs
Act.
2. Any difficulty
faced in the implementation of the notification may be brought to the notice of
the Board.
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