Wait...

Online India Export Import Data Search

Complete Training Video : Click Here

Regarding refund of 4% Additional Duty of Customs (4% CVD) in pursuance of Notification No.102/2007-Customs dated 14.9.2007 – Special Drive for clearance of pending 4% SAD refund claims, Customs Circular No 18/2010, 08-07-2010



Date: 08-07-2010
Notification No: Customs Circular No 18/2010
Issuing Authority: Indian Customs  
Type: Circular
File No: F. No. 401/46/2008-Cus.III
Subject: Regarding refund of 4% Additional Duty of Customs (4% CVD) in pursuance of Notification No.102/2007-Customs dated 14.9.2007 – Special Drive for clearance of pending 4% SAD refund claims

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs

Circular No.18 / 2010-Customs

159A, North Block,
New Delhi -110001
8th July, 2010.

To

All Chief Commissioners of Customs / Customs (Prev.).
All Chief Commissioners of Customs & Central Excise.
All Commissioners of Customs / Customs (Prev.).
All Commissioners of Customs & Central Excise.

Subject: Refund of 4% Additional Duty of Customs (4% CVD) in pursuance of Notification No.102/2007-Customs dated 14.9.2007 – Special Drive for clearance of pending 4% SAD refund claims - reg.

Sir / Madam,

Your kind attention is invited to the Notification No.102/2007-Customs dated 14.9.2007 and Board’s Circulars No.6/2008-Customs dated 28.4.2008 and No.16/2008-Customs dated 13.10.2008 regarding refund of 4% Additional Duty of Customs (4% CVD). Attention is also invited to the Board’s Circulars No.24/2007-Customs dated 2.7.2007, No.22/2008-Customs dated 19.12.2008 and No.7/2008-Customs dated 28.5.2008 which relate to general refund cases.

  1. In this regard, several representations from the trade and industry, associations continue to be received in the Board complaining about the delay in refund of 4% CVD or denial of the refund on one pretext or the other, causing them great hardship.

  2. In view of the fact that all the doubts of the field formations had been clarified by the Board vide above mentioned Circulars, it is viewed that there may not be any difficulty in timely disposal of refund claims. However, on review of the pending refund claims as on 31.3.2010 at major Custom Houses, it has been noticed that more than 80% of pending claims relate to 4% CVD cases. Hence, the Board has decided to further simplify the procedure for claiming 4% CVD refund in the following manner.

  3. In respect of Accredited Clients registered with Customs in terms of Circular No.42/2005-Customs dated 24.11.2005 (ACP clients), the amount of 4% CVD refund shall be sanctioned in full, on preliminary scrutiny of the following documents: (a) TR-6 Challans (in original) for CVD payment; (b) VAT/ST payment Challans (in original); (c) summary of sale invoices; and (d) certificate of statutory Auditor / Chartered Accountant, for correlating the payment of ST/VAT on the imported goods with the invoices of sale and also to the effect that the burden of 4% CVD has not been passed on by the importer to the buyer. The procedure for pre-audit for ACP clients shall be done away with and detailed scrutiny should be done only at the stage of post-audit. The refund claims shall be sanctioned within the maximum time period of 30 days in all such cases.

    4.2. Submission of sale invoices shall be required only in electronic form (CD or other media) in respect of 4% CVD refund cases and submission of paper documents is accordingly dispensed with.

  4. In order to enable timely payment of refund in case of 4% CVD, a system of optional facility of directly crediting the applicant’s bank account, through RTGS (Real Time Gross Settlement) or NEFT (National Electronics Funds Transfer) System is being prescribed. This facility is already functioning in Mumbai Customs Zone-II and has been found useful for the trade. Hence, Board has decided to extend this facility on optional basis to all other Customs formations also. Necessary authorisation for payment of refund amount directly to Bank Account may be taken in such cases from the importer/ authorised signatory of the importer in the form annexed. (Annexure-I)

  5. Some field formations have also raised certain doubts whether the audited Balance Sheet and Profit and Loss Account have to be examined in respect of the current financial year for scrutiny of unjust enrichment aspect. It is stated that a large number of refund claims relating to the current year were held up for want of such verification. In this regard, the issue has been examined by the Board and it has been decided that the field formations shall accept a certificate from Chartered Accountant for the purpose of satisfying the condition that the burden of 4% CVD has not been passed on by the importer to any other person. Further, the importer shall also make a self-declaration along with the refund claim to the effect that he has not passed on the incidence of 4% CVD to any other person. Hence, there is no need for insisting on production of audited Balance Sheet and Profit and Loss Account in these cases. It may also be noted that recently the Board has also notified the list of documents required to be filed by the applicant along with the refund claim (Annexure-II) which is also displayed in the departmental website. Hence, other than these aforesaid documents, no other document would be required in the normal course of granting 4% CVD refund.

  6. Board also desires that the Commissioner of Customs shall personally monitor all cases of 4% CVD refund claims pending for more than 30 days so as to ensure that these are disposed of within the overall time limit of three months.

  7. A suitable Public Notice and Standing Order may be issued for the guidance of the trade and staff. Difficulties faced, if any, in implementation of this Circular may be brought to the notice of the Board at an early date.

Yours faithfully,
Sd./-
(R. P. Singh)
Director (Customs)

F. No. 401/46/2008-Cus.III

Encl: As stated above.
Copy for internal circulation – As usual.

Annexure - I

Authorization for payment of refund amount directly to Bank Account

I.E.C. No. _______________                                             PAN No. _________________.



M/s ______________________________



Address: __________________________



__________________________________



__________________________________


E-mail address:



Bank Account No.: __________________



Bank Name: ______________________



Bank Address: ______________________



11 digit alphanumeric IFS Code : ________________

I declare that the above particulars are correct. I authorize payment of refund amount for my refund claims filed at ______________________ Custom House to my above mentioned Bank Account through NEFT / RTGS after deduction of Bank’s service charges at the rate of 0.09% and applicable NEFT / RTGS charges as per RBI guidelines.

Name of the Authorised signatory /
Representative of the Importer

Signature :

Date:

Place:

Certified that the above details are correct.

Signature of Bank Branch Manager along with the official Seal

Annexure - II

Sl.No.   Type of refund claim   Section / notification under which filed   Illustrative list of documents to be filed by applicant along with Application for refund claim in prescribed form (Customs Series Form No.102 as given in Part 5 of Customs Manual)
3   Refund of 4% SAD   Notification No. 102/2007-Customs dated 14.9.2007  
1. Document evidencing payment of the Special Additional Duty (SAD). 

2. Invoices of sale of the imported goods in respect of which refund of the said SAD is claimed.

3. Documents evidencing payment of appropriate sales tax or value added tax, as the case may be, by the importer, on sale of such imported goods.

4. Certificate from a statutory auditor / CA who certifies the final accounts in respect of correlation of VAT payment, payment of 4% SAD amount and unjust enrichment as prescribed in Board’s circular No.6/2008-Customs dated 28.4.2008 and 16/2008-Customs dated 13.10.2008.

5. Copy of the Consignment Sale Agreement. (in case of sale through consignment agents / stockists).

6. Self-declaration / Affidavit (for e.g. in case of submission of invoice in soft form in lieu of paper documents, in case of fulfillment of the doctrine of unjust enrichment to the effect that the applicant has not passed on the incidence of 4% SAD to any other person).

7. Any other document considered necessary in support of the claim.
       

DO YOU NEED HELP?

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 18-05-2017
Notification No.49/2017 - Customs (N.T.)
Rate of exchange of conversion of the foreign currency with effect from 19th May, 2017

Date: 16-05-2017
Notification No.48/2017 - Customs (N.T.)
Seeks to amend the Customs notification No. 84/2007-Customs (N.T.) dated 17th August, 2007 to give effect to the amendments to Rules of Origin of India-Chile PTA

Date: 16-05-2017
Notification No. 20/2017-Customs
Seeks to amend notification no. 12/2012-customs dated 17.03.2012 extending the time period for furnishing the final Mega power project certificate from 60 months to 120 months and extending the period of validity of security in the form of Fixed Deposit Receipt or Bank Guarantee from 66 months to 126 months, in case of provisional mega power projects

Date: 16-05-2017
Notification No. 19/2017-Customs
seeks to amend notification No. 101/2007 – Customs dated 11th September 2007 so as to notify the expanded schedule of tariff preferences under the India-Chile Preferential Trade Agreement (PTA).

Date: 16-05-2017
Notification No. 23/2017-Customs (ADD)
Seeks to levy definitive anti-dumping duty, on imports of Aluminium Foil originating in or exported from China PR

Date: 16-05-2017
Notification No. 22/2017-Customs (ADD)
Seeks to amend notification No. 23/2016-Customs (ADD) dated 06.06.2016 vide which anti-dumping duty was imposed on imports of Polytetraflouroethylene (PTFE) originating in or exported from Russia so as to revise of the amount of anti-dumping duty applicable from US$ 739.77/MT to US$ 874.56/MT

Date: 16-05-2017
Notification No. 21/2017-Customs (ADD)
Seeks to levy definitive anti-dumping duty on import of Amoxycillin originating in or exported from China PR for a period of five years (unless revoked, superseded or amended earlier) in pursuance of final findings of the Directorate General of Anti-Dumping and Allied Duties.

Date: 16-05-2017
Central Excise Notification No. 08/2017
seeks to amend notification no. 12/2012-Central Excise dated 17.03.2012 extending the time period for furnishing the final Mega power project certificate from 60 months to 120 months and extending the period of validity of security in the form of Fixed Deposit Receipt or Bank Guarantee from 66 months to 126 months, in case of provisional mega power projects.

Date: 15-05-2017
Notification No.47/2017 - Customs (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver

Date: 12-05-2017
Notification No. 20/2017-Customs (ADD)
Seeks to impose definitive anti-dumping duty on imports of Aluminium Radiators, Aluminium Radiator Sub-Assemblies and Aluminium Radiator Core, originating in, or exported from, China PR