THE FINANCE BILL, 2000

Notes on Clauses : Customs

Clause 74 seeks to amend section 27A of the Customs Act so as to vest the power to fix the rate of interest with the Central Government instead of the Board.

Clause 75 seeks to amend section 28 of the Customs Act so as to provide for prior approval of the Commissioner where the amount is one crore rupees or less or the Chief Commissioner of Customs before service of a notice demanding duty or interest in cases where there is non-levy, short levy or erroneous refund of duty and non-payment or part payment of interest.

Clause 76 seeks to amend section 28AA of the Customs Act so as to increase the minimum rate of interest payable on delayed payment of customs duty from ten per cent. to eighteen per cent. per annum and the maximum rate of interest from thirty per cent. to thirty-six per cent. per annum and also to vest the power to fix the rate of interest with the Central Government instead of the Board;

Clause 77 seeks to amend section 28AB of the Customs Act so as to increase the minimum rate of interest payable on delayed payment of customs duty in special cases such as on account of wilful mis-statement, suppression of facts, etc., from ten per cent. to eighteen per cent. per annum and the maximum rate of interest from thirty per cent. to thirty-six per cent. per annum and also to vest the power to fix the rate of interest with the Central Government instead of the Board.

Clause 78 seeks to amend section 28B of the Customs Act retrospectively with effect from 20th September 1991 so as to provide for machinery for recovery of sums required to be paid to the Central Government under the said section 28B and which are not so paid.

Clause 79 seeks to amend section 47 of the Customs Act so as to increase the minimum rate of interest payable when the customs duty is paid after two days, excluding holidays, of return of the bill of entry to the importer with an order permitting clearance of the imported goods for home consumption, from ten per cent. to eighteen per cent. per annum and the maximum rate of interest from thirty per cent. to thirty-six per cent. per annum and also to vest the power to fix the rate of interest with the Central Government instead of the Board.

Clause 80 seeks to amend section 59 of the Customs Act so.78 as to increase the rate of interest payable in respect of imported goods entered for warehousing, from six per cent. to a minimum of eighteen per cent. and a maximum of thirty-six per cent. per annum and also to vest the power to fix the rate of interest with the Central Government instead of the Board.

Clause 81 seeks to amend section 114A of the Customs Act so as to, -

    (i) prescribe a reduced penalty of twenty-five per cent. of the duty evaded or interest thereon, when the duty and interest determined under section 28, and such reduced penalty, is paid within thirty days of the communication of the order made by the proper officer of customs;

    (ii) provide that where any penalty has been levied under the said section, no penalty shall be leviable under section 112 or section 114.

Clause 82 seeks to amend clause (a) of first proviso to sub-section (1) of section 127B of the Customs Act to provide that issue of a show cause notice in relation to the bill of entry or the shipping bill would be mandatory for the purpose of making an application in relation to such bill of entry or shipping bill, as the case may be, for the purpose of settlement before the Customs and Central Excise Settlement Commission.

Clause 83 seeks to insert new section 127MA in the Customs Act to extend the benefit of settlement of cases to those persons who had filed an appeal before the Appellate Tribunal on or before the 29th day of February, 2000 and which is pending on the day of making an application for withdrawal of such appeal and apply for settlement of the case to the Customs and Central Excise Settlement Commission.
Clause 84 seeks to amend section 142 of the Customs Act so as to provide for recovery of any amount required to be paid to the credit of the Central Government under section 28B of the said Act and which is not so credited.

Clause 85 seeks to amend the Customs Tariff Act. 

Sub-clause (a) seeks to amend section 9A of the Customs Tariff Act so as to extend the machinery provided under the Customs Act in respect of demands, refunds and appeals, to anti-dumping duties. Sub-clause (b) seeks to insert section 9AA in the Customs Tariff Act so as to provide for refund of anti-dumping paid by an importer in excess of the actual margin of dumping ;
Sub-clause (c) seeks to amend the First Schedule to the Customs Tariff Act in the manner as specified in the Second Schedule:

Part I of the said Second Schedule seeks to–

reduce the customs duty in respect of articles falling under the following Chapters, heading and sub-heading Nos., namely:–

Chapters 1, 8 (except sub-heading Nos. 0801.31, 0802.12, 0804.10, 0805.10, 0805.30, 0806.10, 0808.10, 0809.40 and 0810.90), 12 (heading Nos. 12.01, 12.02, 12.03, 12.04, 12.05, 12.06, 12.07, 12.08, 12.10, 12.12, 12.13 and 12.14 and sub-heading Nos. 1211.10 and 1211.20), 13 (except sub-heading Nos. 1302.19 and 1302.20), 16, 17 (sub-heading Nos. 1702.20, 1702.30, 1702.40,1702.50, 1702.60, 1702.90 and 1704.90), 18 (except heading No. 18.01), 19 (except sub-heading Nos. 1901.10 and 1905.30), 20, 21, 22 (heading Nos. 22.01, 22.02, 22.08 and 22.09 and sub-heading No. 2207.10), 23 (except sub-heading No. 2301.20), 24, 25 (heading Nos. 25.15, 25.16, 25.19 and 25.23), 27 (heading Nos. 27.09, 27.12 and 27.15 and sub-heading Nos. 2713.12, 2713.20 and 2713.90), 28 (heading No. 28.23), 29 (sub-heading No. 2918.14), 32 (sub-heading Nos. 3206.11 and 3206.19), 33, 34, 38 (heading No. 38.18), 40 (except sub-heading Nos. 4001.10, 4001.21, 4001.22, 4001.29 and 4011.30), 42, 43 (heading Nos. 43.03 and 43.04), 44 (heading Nos. 44.10 and 44.11), 46, 48 (heading Nos. 48.12, 48.13, 48.14, 48.15, 48.16, 48.17, 48.18, 48.19, 48.20, 48.21 and 48.22 and sub-heading Nos. 4823.11, 4823.19, 4823.40, 4823.51, 4823.59, 4823.60, 4823.70 and 4823.90), 51 (heading Nos. 51.05, 51.06, 51.07, 51.08, 51.09 and 51.10), 52 (except heading Nos. 52.01 and 52.02 and sub-heading Nos. 5207.10, 5208.41, 5208.42, 5208.49, 5208.51, 5208.52, 5208.53, 5208.59, 5209.41, 5209.42, 5209.43, 5209.51, 5209.52, 5209.59, 5210.41, 5210.42, 5210.49, 5210.51, 5210.52, 5210.59, 5211.41, 5211.42, 5211.43, 5211.51, 5211.52, 5211.59, 5212.15, 5212.24 and 5212.25), 53 (heading Nos. 53.06, 53.07, 53.08, 53.09, 53.10 and 53.11), 54 (except sub-heading Nos. 5407.10, 5407.41, 5407.42, 5407.43, 5407.44, 5407.51, 5407.52, 5407.53, 5407.54, 5407.71, 5407.72, 5407.73, 5407.74, 5407.81, 5407.82, 5407.83, 5407.84, 5407.91, 5407.92, 5407.93, 5407.94, 5408.22, 5408.23, 5408.24, 5408.31, 5408.32, 5408.33 and 5408.34), 55 (except heading Nos. 55.05, 55.11 and 55.15 and sub-heading Nos. 5512.19, 5512.29, 5512.99, 5513.21, 5513.22, 5513.23, 5513.29, 5513.31, 5513.32, 5513.33, 5513.39, 5513.41, 5513.42, 5513.43, 5513.49, 5514.21, 5514.22, 5514.23, 5514.29, 5514.31, 5514.32, 5514.33, 5514.39, 5514.41, 5514.42, 5514.43, 5514.49, 5516.12, 5516.13, 5516.14, 5516.24, 5516.43, 5516.44, 5516.93 and 5516.94), 56, 57 (except sub-heading Nos. 5702.32, 5702.42, 5702.52, 5702.92, 5703.20, 5703.30 and 5704.90), 58 (except heading Nos. 58.01 and 58.04 and sub-heading Nos. 5802.11, 5802.19 and 5810.10), 59, 60 (except sub-heading No. 6001.92), 61 (except heading Nos. 61.05, 61.06, 61.09 and 61.10 and sub-heading Nos. 6101.10, 6101.20, 6101.30, 6102.10, 6102.20, 6102.30, 6104.19, 6104.41, 6104.43, 6104.44, 6104.49, 6104.51, 6104.52, 6104.53, 6104.59, 6104.62, 6104.63, 6107.11, 6107.12, 6108.21, 6108.22, 6108.91 and 6108.92), 62 (except heading Nos. 62.03, 62.05, 62.12 and 62.15 and sub-heading Nos. 6201.11, 6201.12, 6201.13, 6201.91, 6201.92, 6201.93, 6202.11, 6202.12, 6202.13, 6202.91, 6202.92, 6202.93, 6204.11, 6204.13, 6204.19, 6204.31, 6204.32, 6204.33, 6204.39, 6204.41, 6204.42, 6204.43, 6204.44, 6204.49, 6204.51, 6204.61, 6204.62, 6204.69, 6206.20, 6206.30, 6206.40, 6207.11, 6207.19, 6207.99, 6208.11, 6208.19, 6208.91, 6208.92, 6210.20, 6210.30, 6210.40, 6210.50, 6211.32, 6211.33, 6211.42, 6211.43, 6214.10, 6214.20 and 6214.90), 63 (except heading No. 63.10 and sub-heading Nos. 6301.20, 6302.21 and 6302.31), 64, 65, 66, 67, 68 (except heading No. 68.06), 69 (except heading Nos. 69.02 and 69.03), 70, 71, 72 (heading No. 72.01), 82 (heading Nos. 82.12, 82.13, 82.14 and 82.15), 83, 84 (heading Nos. 84.15, 84.69, 84.70, 84.71, 84.72 and 84.73 and sub-heading Nos. 8418.21, 8418.22, 8418.29, 8418.91, 8418.99, 8422.11, 8422.19, 8422.90, 8423.10, 8448.19, 8450.11, 8450.12, 8450.19, 8450.90, 8452.10, 8452.30, 8452.40 and 8452.90), 85 (heading Nos. 85.06, 85.07, 85.09, 85.10, 85.11, 85.12, 85.13, 85.19, 85.20, 85.21, 85.26, 85.28, 85.31, 85.32, 85.35, 85.39 and 85.42 and sub-heading Nos.8516.10, 8516.21, 8516.29, 8516.31, 8516.32, 8516.33, 8516.40, 8516.50, 8516.60, 8516.71, 8516.72, 8516.79, 8516.80, 8517.11, 8517.19, 8517.21, 8517.22, 8517.90, 8518.10, 8518.21, 8518.22, 8518.29, 8518.30, 8518.40, 8518.50, 8522.90, 8523.11, 8523.12, 8523.13, 8523.20, 8523.30, 8524.10, 8524.32, 8524.39, 8524.51, 8524.52, 8524.53, 8524.60, 8524.99, 8525.30, 8525.40, 8527.12, 8527.13, 8527.19, 8527.21, 8527.29, 8527.31, 8527.32, 8527.39, 8533.90, 8540.40, 8541.90, 8543.81, 8544.11, 8544.19, 8544.20, 8544.30, 8544.41, 8544.49, 8544.51, 8544.59 and 8544.60), 86 (except heading Nos. 86.07 and 86.08), 87 (except heading No. 87.10), 88 (heading Nos. 88.01, 88.04 and 88.05 and sub-heading Nos. 8802.11, 8802.12, 8802.60 and 8803.90), 89 (except heading No. 89.08), 90 (heading Nos. 90.01, 90.02, 90.03, 90.04 and 90.05 and sub-heading Nos. 9006.10, 9006.20, 9006.30, 9006.40, 9006.51, 9006.52, 9006.53, 9006.59, 9006.61, 9006.62, 9006.69, 9007.11, 9007.19, 9007.20, 9008.10, 9008.20, 9008.30, 9008.40, 9009.11, 9009.12, 9009.21, 9009.22, 9009.30, 9010.10, 9010.41, 9010.42, 9010.49, 9010.50, 9010.60,.799022.19, 9022.29, 9022.30, 9022.90, 9026.20, 9026.80, 9026.90, 9027.20, 9027.30, 9027.50, 9027.80, 9030.40 and 9030.82), 91 (heading Nos. 91.01, 91.02, 91.03, 91.04, 91.05, 91.06 and 91.07 and sub-heading Nos. 9111.10, 9111.90 and 9113.10), 93, 94, 96, 97 (except heading No. 97.04), 98 (heading No. 98.05 and sub-heading No. 9804.90); 

increase the customs duty in respect of articles falling under the following Chapters, heading and sub-heading Nos., namely:–

Chapters 2, 3, 4 (sub-heading Nos. 0402.10, 0402.21, 0405.10 and 0406.90), 5, 6, 7, 8 (sub-heading Nos. 0801.31, 0806.10, 0808.10 and 0810.90), 10 (heading No. 10.01, 10.07 and sub-heading Nos. 1005.10, 1005.90, 1006.10, 1006.20, 1006.30, 1006.40 and 1008.20), 11 (sub-heading No. 1107.10), 12 (heading No. 12.09 and sub-heading No. 1211.90), 13 (sub-heading Nos. 1302.19 and 1302.20), 14, 15 (heading Nos. 15.05, 15.07, 15.08, 15.09, 15.10, 15.11, 15.12, 15.13, 15.14 and 15.15), 17 (heading Nos. 17.01 and 17.03 and sub-heading Nos. 1702.11, 1702.19 and 1704.10), 19 (sub-heading Nos. 1901.10 and 1905.30), 22 (sub-heading No. 2207.20), 23 (sub-heading No. 2301.20), 27 (heading No. 27.10 and sub-heading No. 2701.12), 37 (sub-heading Nos. 3702.32, 3702.39, 3702.42, 3702.43 and 3702.44), 38 (sub-heading No. 3823.70), 40 (sub-heading No. 4001.10), 47 (heading No. 47.07), 51 (sub-heading Nos. 5101.21 and 5101.30), 75 (heading No. 75.08), 76 (heading No. 76.15), 80 (heading No. 80.07), 82 (except heading Nos. 82.12, 82.13, 82.14 and 82.15), 84 (sub-heading Nos. 8414.51 and 8414.59), 85 (sub-heading No. 8504.10), 95 (except heading Nos. 95.06 and 95.07); 

change the mode of levy from specific cum ad valorem to advalorem in respect of goods falling under heading No. 84.82 and sub-heading No. 8483.20; 

and change the mode of levy from ad valorem to ad valorem or specific, whichever is higher, in respect of goods falling under the following Chapters, heading and sub-heading Nos., namely:–

Chapters 51 (heading Nos. 51.11, 51.12 and 51.13), 52 (sub-heading Nos. 5208.41, 5208.42, 5208.49, 5208.51, 5208.52, 5208.53, 5208.59, 5209.41, 5209.42, 5209.43, 5209.51, 5209.52, 5209.59, 5210.41, 5210.42, 5210.49, 5210.51, 5210.52, 5210.59, 5211.41, 5211.42, 5211.43, 5211.51, 5211.52, 5211.59, 5212.15, 5212.24 and 5212.25), 54 (sub-heading Nos. 5407.10, 5407.41, 5407.42, 5407.43, 5407.44, 5407.51, 5407.52, 5407.53, 5407.54, 5407.71, 5407.72, 5407.73, 5407.74, 5407.81, 5407.82, 5407.83,
5407.84, 5407.91, 5407.92, 5407.93, 5407.94, 5408.22, 5408.23, 5408.24, 5408.31, 5408.32, 5408.33 and 5408.34), 55 (heading Nos. 55.11 and 55.15 and sub-heading Nos. 5512.19, 5512.29, 5512.99, 5513.21, 5513.22, 5513.23, 5513.29, 5513.31, 5513.32, 5513.33, 5513.39, 5513.41, 5513.42, 5513.43, 5513.49, 5514.21, 5514.22, 5514.23, 5514.29, 5514.31, 5514.32, 5514.33, 5514.39, 5514.41, 5514.42, 5514.43, 5514.49, 5516.12, 5516.13, 5516.14, 5516.24, 5516.43, 5516.44, 5516.93 and 5516.94), 57 (sub-heading Nos. 5702.32, 5702.42, 5702.52, 5702.92, 5703.20, 5703.30 and 5704.90), 58 (heading Nos. 58.01 and 58.04 and sub-heading Nos. 5802.19 and 5810.10), 60 (sub-heading No. 6001.92), 61 (heading Nos. 61.05, 61.06, 61.09 and 61.10 and sub-heading Nos. 6101.10, 6101.20, 6101.30, 6102.10, 6102.20, 6102.30, 6104.19, 6104.41, 6104.43, 6104.44, 6104.49, 6104.51, 6104.52, 6104.53, 6104.59, 6104.62, 6104.63, 6107.11, 6107.12, 6108.21, 6108.22, 6108.91 and 6108.92), 62 (heading Nos. 62.03, 62.05, 62.12 and 62.15 and sub-heading Nos. 6201.11, 6201.12, 6201.13, 6201.91, 6201.92, 6201.93, 6202.11, 6202.12, 6202.13, 6202.91, 6202.92, 6202.93, 6204.11, 6204.13, 6204.19, 6204.31, 6204.32, 6204.33, 6204.39, 6204.41, 6204.42, 6204.43, 6204.44, 6204.49, 6204.51, 6204.61, 6204.62, 6204.69, 6206.20, 6206.30, 6206.40, 6207.11, 6207.19, 6207.99, 6208.11, 6208.19, 6208.91,
6208.92, 6210.20, 6210.30, 6210.40, 6210.50, 6211.32, 6211.33, 6211.42, 6211.43, 6214.10, 6214.20 and 6214.90), 63 (sub-heading Nos. 6301.20, 6302.21 and 6302.31);

Clause 86 seeks to provide for a surcharge of customs on goods specified under the First Schedule to the Customs Tariff Act of an amount equal to ten per cent. of the duty chargeable on such goods at the rates specified under the First Schedule to that Act.