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Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise & Custom)
(Tariff Unit)
INSTRUCTION No. –
09/2017-Customs
North Block, New Delhi
Dated: 5th July, 2017
To
All Pr. Chief Commissioners/Chief Commissioners of Customs/Customs
(Preventive)
All Pr. Chief Commissioners /Chief Commissioners of Customs and
Central Excise
All Pr. Commissioners/Commissioners of Customs/Customs
(Preventive)
Madam/Sir,
Subject: Import of gifts and other goods for personal use through Courier
-regarding.
Kind attention is drawn to Notification No. 50/2017-Customs dated 30th June, 2017
wherein under SI. No. 608, a concessional rate of 10% BCD has been provided on
all goods classified under heading 9804 subject to the conditions prescribed in
the notification. Attention is also invited to ITC (HS) Classification of Export
& Import Items, of DGFT, wherein, under sub-heading 98049000, it is prescribed
that all dutiable articles intended for personal use are restricted with
condition that their import is subject to value limit of Rs. 2000/- (CIF) and
other conditions as specified in clause 3(1) (i) of Foreign Trade (Exemption
from Application of Rules in Certain Cases) Order, 1993.
2. Reference has been received in the Board that seeking clarification as to
whether the above concessional duty @ 10% is applicable to goods imported
through courier (heading 9804) where the value of the said goods is above Rs.
2000/-. It has been further mentioned that there is no uniformity of practice in
the field formations on this issue as different airports are following different
practices.
3. Board has examined the issue in detail. It is observed that:
a) ITC(HS) and First Schedule of the Customs Tariff Act are generally
harmonized.However, due to recent changes in the First Schedule of the Customs
Tariff Act vide Finance Act, 2017. the scope of the heading 9804 in the Tariff
has been changed. As a result, heading 9804 of ITC (HS) and Customs Tariff are
not fully aligned.
b) Note 4 of Chapter 98 of the ITC (HS) provides that heading 9804 is taken
not to apply to goods imported through courier, however such Note does not exist
in Customs Tariff Act for the Chapter 98.
c) In such situations in the light of Hon’ble Apex Court Judgment in the case
of Commissioner v. M.K. Shipping & Allied Industries Pvt. Ltd. – 2015 (322)
E.L.T. A326 (S.C.), for the policy condition classification under ITC (HS)
should prevail and for the duty purpose classification under Customs Tariff Act
should be taken into account.
c) In such situations in the light of Hon’ble Apex Court Judgment in the case
of Commissioner v. M.K. Shipping & Allied Industries Pvt. Ltd. – 2015 (322)
E.L.T. A326 (S.C.), for the policy condition classification under ITC (HS)
should prevail and for the duty purpose classification under Customs Tariff Act
should be taken into account.
c) In such situations in the light of Hon’ble Apex Court Judgment in the case
of Commissioner v. M.K. Shipping & Allied Industries Pvt. Ltd. – 2015 (322)
E.L.T. A326 (S.C.), for the policy condition classification under ITC (HS)
should prevail and for the duty purpose classification under Customs Tariff Act
should be taken into account.
a) Policy conditions in heading 9804 ITC (HS) will not be applicable to
imports through courier: and
b) imports through courier will be eligible to concessional rate of 10% Basic
Customs Duty [Sl. No. 608 notification No. 50/2017-Customs] provided that the
goods are intended for personal use, and are exempted from any prohibition in
respect of the imports thereof under the Foreign Trade (Development and
Regulation) Act, 1992 (22 of 1992).
Yours faithfully,
(Piyush Bhardwaj)
STO (TU)
[F. No. 528/41/2017-STO
(TU)]
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