Circular No. 21/2017 -Customs F. No. 609/54/2017-DBK

Circular No. 21/2017 -Customs

F. No. 609/54/2017-DBK

Government of India

Ministry of Finance, Department of Revenue

Central Board of Excise & Customs

*****

New Delhi, dated 30th June, 2017

To,

Principal Chief Commissioners / Principal Directors General,

Chief Commissioners / Directors General,s

Principal Commissioners / Commissioners,

all under CBEC

Madam/Sir,

Subject: Drawback of Integrated Tax and Compensation Cess paid on imported goods upon re-export

under Section 74 of the Customs Act, 1962

As you are aware, Section 74 of the Customs Act, 1962 provides for drawback of duties paid

at time of importation when the imported goods are re-exported. Hitherto this drawback inter alia

comprised refund of basic customs duty and additional duties under Section 3 of the Customs Tariff

Act (CTA), 1975. In this regard, Re-export of Imported Goods (Drawback of Customs Duties) Rules,

1995 refer.

2. Under the GST regime, goods upon import shall be subject to integrated tax and

compensation cess in terms of Sections 3(7) and 3(9) respectively of the CTA, 1975. Further, in terms

of Section 3(12) of the CTA, 1975, the provisions of the Customs Act, 1962 and rules and regulations

made thereunder relating inter alia to drawback shall apply to integrated tax and compensation cess

also. Accordingly, drawback under Section 74 would include refund of integrated tax and

compensation cess along with basic customs duty, etc.

3. In this regard, the definition of “drawback” under Rule 2 (a) of the Re-export Rules, 1995 has

been suitably amended to include refund of duty or tax or cess as referred in the CTA, 1975.

Notification No. 57/2017-Customs (N.T.) dated 29.6.2017 may be referred in this regard.

4. In order to prevent dual benefit while sanctioning drawback under Section 74 of the Customs

Act, 1962, it may be ensured that a certificate duly signed by the Central/State/UT GST officer,

having jurisdiction over the exporter is obtained, that no credit of integrated tax /compensation cess

paid on imported goods has been availed or no refund of such credit or integrated tax paid on re-

exported goods has been claimed. All other extant instructions in respect of drawback claims under

Section 74 remain unchanged.

5. Suitable Public Notice for information of the trade and Standing Order for guidance of the

staff may kindly be issued. Difficulties faced, if any, in implementation of this Circular may be brought

to the notice of the Board.

Yours faithfully,

(Nitish K. Sinha)

Joint Secretary to the Government of India

Circular No. 22/2017-Customs

F. No. 609/46/2017-DBK

Government of India




To

Principal Chief Commissioners/Principal Directors General,

Chief Commissioners/Directors General,

Principal Commissioners/Commissioners,

all under CBEC

Subject: Amendments effective from 1.7.2017 to the All Industry Rates of Duty Drawback and other

Drawback related changes.

Madam/Sir,

Your attention is invited to Notification numbers 58/2017-Cus (N.T.) & 59/2017-Cus (N.T.),

both dated 29.6.2017, which are effective from 1.7.2017. These notifications relate to changes in

the provisions of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 and All

Industry Rates (AIR) of drawback stipulated earlier vide Notification no. 131/2016-Cus (N.T.) dated

31.10.2016 (as amended) respectively.

2. The salient features of changes introduced vide Notification no. 59/2017 dated 29.06.2017

are briefly given as follows:

(a) Transition period:

In order to ensure smooth transition to the GST regime, Government has allowed the

extant Duty Drawback scheme to continue for a period of three months i.e. from 1.7.2017 to

30.9.2017. The exporter may, for exports made during this period, continue to claim the

composite rates i.e. rates and caps given under columns (4) and (5) respectively of the

Schedule of AIRs of duty drawback, subject to certain additional conditions. During the

transition period, exporters can also claim Brand rate of duty/tax incidence as they have

been doing earlier. The conditions imposed for claiming these composite rates aim to

ensure that the exporters do not claim composite AIRs of duty drawback and simultaneously

avail input tax credit of Central Goods and Services Tax (CGST) or Integrated Goods and

Services Tax (IGST) on the export goods or on inputs and input services used in

manufacture of export goods or claim refund of IGST paid on export goods. Further, an

exporter claiming composite rate shall also be barred to carry forward Cenvat credit on the

export goods or on inputs or input services used in manufacture of export goods in terms

of the CGST Act, 2017. The exporters have to give a declaration and certificates as

prescribed in this Notification at the time of export. Similar checks shall apply while

determining the Brand rate of drawback. While a transition period of three months has been

allowed, the exporters shall have an option to claim only Customs portion of AIRs of duty

drawback i.e. rates and caps given under column (6) and (7) respectively of the Schedule of

AIRs of duty drawback and avail input tax credit of CGST or IGST or refund of IGST paid on

exports.

(b) Changes in AIRs:

Based on prevailing prices of inputs and export goods, budgetary changes,

representations received and keeping in mind need for removing anomalies, certain changes

have been made in AIRs. These interalia include –

i. Para (17) of Notes and Conditions of Notification no. 131/2016-Cus (N.T.) dated

31.10.2016 has been amended to include the word “melange” so that melange textile

materials covered in chapters 54 and 55 are treated as dyed;

ii. Customs rates and caps have been increased for certain marine products covered

under chapters 3, 15, 16 and 23;

iii. For better product differentiation, two new tariff lines have been introduced. These

relate to leather under chapter 41 and pillows/cushions/quilts/pouffles filled with

poly-fil under chapter 94;

iv. Caps have been enhanced for several textile items covered under chapters 52, 54,

55 and 56;

v. Rates and caps have been enhanced for made up fishing and sports nets of other

man-made textile materials covered under chapters 56 and 95 respectively;

vi. “Leggings” have been classified under tariff item 611501 instead of 610304 and

610404; and

vii. Customs rates have been reduced for nickel and articles thereof covered under

chapter 75.

3. Further, vide Notification no. 58/2017-Cus dated 29.6.2017, the work related to:

(a) fixation of Brand rate of drawback has been transferred from Central Excise formations to

Customs formations having jurisdiction over place of export. A separate circular is being

issued to explain various related provisions, procedures, etc.

(b) supplementary claims of drawback are now to be dealt only by Customs formations. For

this purpose, references to Central Excise formations wherever appearing have been omitted

from the said Drawback Rules, 1995.

3.1 Some of the Customs formations are at present working under the jurisdiction of

Commissioners of Central Excise. It may be noted that Central Excise officers have been designated

as officers of Customs under the Customs Act, 1962. Accordingly, till the time jurisdictional

Commissionerates of Customs, which will replace Central Excise Commissionerates hitherto

performing Customs functions are notified and become functional, the jurisdictional Central Excise

Commissionerates shall continue to discharge Customs functions as required under the Drawback

Rules 1995.

4. It is requested that the changes effected vide aforesaid notifications be gone through

carefully. Suitable public notice and standing order should be issued for guidance of the trade and

officers.

5. Any inconsistency, error or difficulty faced should be intimated to the Board.

Yours faithfully,

(Nitish K. Sinha)

Joint Secretary to Government of India


F. No. 609/46/2017-DBK

Government of India



***


To,


Chief Commissioners / Directors General,


all under CBEC

Madam/Sir,

Subject: Fixation of Brand Rate of drawback under Rule 6 and Rule 7 of the Customs, Central

Excise Duties & Service Tax Drawback Rules, 1995 in the GST scenario

As you are aware, in terms of Rule 6 and Rule 7 of the Customs, Central Excise Duties

and Service Tax Drawback Rules, 1995, the work pertaining to fixation of Brand rate of

Drawback is undertaken by the Central Excise Commissionerate having jurisdiction over the

factory where export goods are manufactured. In this context, Board’s Circular No. 14/2003-Cus

dated 6.3.2003, DO letter No. 609/110/2005-DBK dated 26.8.2005, Instruction No.

603/01/2011-DBK dated 11.10.2013, Circular No. 29/2015-Cus dated 16.11.2015 and Circular

No. 54/2016-Cus dated 22.11.2016 governing the procedure for handling of Brand rate work

may be referred. Once the Brand rate letter (provisional or final) is issued by such

Commissionerate, the respective ports of export are required to calculate and disburse the

drawback amount to the exporter. This Circular explains the changes being brought about in

Brand rate mechanism in the context of introduction of Goods and Services Tax (GST) w.e.f.

1.7.2017.

2. The input tax incidence of taxes covered in GST regime are to be neutralized through

the refund mechanism provided through the GST laws. At the same time, a transition period of

three months from date of introduction of GST has been provided i.e. from 1.7.2017 to

30.9.2017 by continuing the extant Duty Drawback scheme and amending the Drawback Rules,

1995 vide Notification No. 58/2017-Cus (N.T.) dated 29.6.2017. For exports made during this

transition period, the exporter can claim All Industry Rate (AIR) or Brand rate of drawback for

Customs, Central Excise Duties and Service Tax subject to certain additional conditions. These

conditions aim to ensure that the exporter simultaneously does not avail input tax credit of

Central Goods and Services Tax (CGST) or Integrated Goods and Services Tax (IGST) on the

export goods or on inputs and input services used in manufacture of export goods or claim

refund of IGST paid on export goods. Further, an exporter claiming drawback during transition

period as per extant duty drawback provisions shall also be barred to carry forward Cenvat

credit in terms of the CGST Act, 2017 on the export goods or on inputs or input services used

in manufacture of export goods. The exporter also has to give the prescribed declaration and

certificates (similar to declaration and certificate prescribed in Notification No. 59/2017-Cus

(N.T.) dated 29.6.2017 for claiming composite AIR during transition time) at the time of

application for fixation of Brand rate of drawback. At the same time, the exporter has the

option of claiming the Brand rate of Customs duties and remnant Central Excise duties (in

respect of goods given in Fourth Schedule to Central Excise Act, 1944) and avail input tax

credit of CGST or IGST or refund of IGST paid on exports.

3. Further, in view of implementation of GST, Board has decided to re-organise the

Customs functions hitherto handled by Central Excise formations. In this context, it has been

decided that w.e.f. 1.7.2017, the work pertaining to fixation of Brand rate will be dealt by the

Customs Commissionerate having jurisdiction over the place of export from where the export of

goods has taken place. In case the exports have taken place from more than one place,

exporter shall file Brand rate application with the Principal Commissioner/ Commissioner of

Customs having jurisdiction over any one of the places of export. Accordingly, Rule 6 and Rule

7 ibid have been suitably amended vide Notification No. 58/2017-Cus (N.T.) dated 29.6.2017.

4. All Circulars/instructions issued till date w.r.t. fixation of Brand rate shall mutatis

mutandis apply for work of fixation of Brand rate to be done by Customs formations in the

GST scenario. However, verification of data given in the application if so required shall be got

done through the Customs formation having jurisdiction over the factory where the export

goods have been manufactured.

5. From 1.7.2017, all fresh applications for Brand rate of drawback irrespective of date of

export will be dealt as per these guidelines. The applications already filed with existing Central

Excise formations prior to 1.7.2017 and pending shall be transferred along with all relevant

documents to the Principal Commissioner/ Commissioner of Customs having jurisdiction over

the place of export. In case an already filed application relates to exports from multiple places,

the application should be transferred to the Principal Commissioner/ Commissioner of Customs

having jurisdiction over any one of the places of export as per choice of the exporter. The

exporter concerned may be requested to indicate his choice in this regard before the transfer

of his application. For smooth transition of Brand rate related work to Customs formations, it is

essential that transfer of documents is undertaken carefully and in close coordination with

concerned Customs authorities without disruption, delay etc.

5.1 Some of the Customs formations are at present working under the jurisdiction of

Commissioners of Central Excise. It may be noted that Central Excise officers have been

designated as officers of Customs under the Customs Act, 1962. Accordingly, till the time

jurisdictional Commissionerates of Customs, which will replace Central Excise Commissionerates

hitherto performing Customs functions, are notified and become functional, the jurisdictional

Central Excise Commissionerates shall continue to discharge Customs functions as required

under the Drawback Rules 1995.

6. Suitable Public Notices for information of the Trade and Standing Orders for guidance of

the staff may be issued.

7. Problems or difficulty which may be encountered in implementing the Brand Rate fixation

work may please be brought to the notice of Board.

Yours faithfully,

(Nitish K. Sinha)



F. No. 609/46/2017-DBK

Government of India



*****


To,


Chief Commissioners / Directors General,


all under CBEC

Madam/Sir,

Subject: Duty Drawback for supplies made by DTA units to Special Economic Zones in the GST

scenario

Attention is invited to Board’s Circular No. 43/2007-Customs dated 5.12.2007 and Circular

No. 39/2010-Customs dated 15.10.2010 which inter alia prescribe that in respect of drawback

claims by a DTA supplier for supplies made to SEZ Unit or developer, when accompanied by a

disclaimer, the drawback shall be disbursed by the Central Excise Commissionerate having

jurisdiction over the manufacturing unit of the DTA supplier.

2. In view of implementation of GST, Board has decided to re-organise the Customs functions

hitherto handled by Central Excise formations. In this context, it has been decided that in respect of

supplies made by DTA unit to SEZ Unit or developer and where the SEZ Unit or developer issues a

disclaimer to the DTA supplier and drawback is claimed by the DTA supplier, the drawback shall be

processed and paid by the office of Principal Commissioner or Commissioner of Customs/ Customs

(Preventive) in whose jurisdiction the DTA Unit falls. Further, the fixation of Brand rate in case of

supplies from DTA to SEZ Unit or developer, if required, shall also be done by the office of said

Principal Commissioner/ Commissioner. This shall apply to all fresh applications/ claims filed from

1.7.2017 onwards.

3. The applications/ claims which have already been filed up to 30.6.2017 and are pending

with jurisdictional Central Excise formations shall be transferred to the Principal Commissioner/

Commissioner of Customs/ Customs (Preventive) having jurisdiction over the DTA supplier. For

smooth transition of above cited work to Customs formations, it is essential that transfer of

documents is undertaken carefully and in close coordination with Customs authorities concerned

without disruption, delay etc.

4. The extant instructions regarding processing etc. of drawback claims of DTA suppliers for

supplies made to SEZ Unit or developer remain unchanged except to the extent stated above. It

may be noted that Central Excise officers have been designated as officers of Customs under the

Customs Act, 1962. Accordingly, till the time jurisdictional Commissionerates of Customs, which will

replace Central Excise Commissionerates hitherto performing Customs functions, are notified and

become functional, the jurisdictional Central Excise Commissionerates shall continue to discharge

Customs functions as required under the Drawback Rules, 1995.

5. Suitable Public Notice for information of the trade and Standing Order for guidance of the

staff may kindly be issued. Difficulties faced, if any, in implementation of this Circular may be

brought to the notice of the Board.

Yours faithfully,

(Nitish K. Sinha)



F. No. 450/28/2016-Cus.IVGovernment of IndiaMinistry of Finance

Department of Revenue(Central Board of Excise and Customs)

New Delhi, dated the 30th June, 2017To

AJJ Principal Chief Commissioner/Chief Commissioner of Customs & Central ExciseAll Principal Commissioner/Commissioner of Customs & Central ExciseAll Principal Chief Commissioner/Chief Commissioner of Customs/Customs (Preventive)All Principal Commissioner/Commissioner of Customs / Customs (Preventive)

Subject: Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017-Implementation thereof-reg.

Sir/ Madam,

In budget 2016-17, government had notified Customs (Import of goods at

concessional rate of duty for manufacture of excisable goods) Rules, 2016. These rules

applied to an importer, being a manufacturer, who intended to avail the benefit of an

exemption notification issued under sub-section (1) of section 25 of the Customs Act, 1962

(52 of 1962) and where the benefit of such exemption was dependent upon the use of

imported goods covered by that notification for the manufacture of any excisable commodity.

These rules were also applied mutatis mutandis in respect of imported goods which were to

be used to provide a service instead of being used in the further manufacturing process.

2. With the advent of Goods and Services Tax, Central Excise duty would not be

applicable except on a few commodities like Petroleum products, Tobacco products etc. In

view of this Customs (Import of goods at concessional rate of duty for manufacture of

excisable goods) Rules, 2016 are being superseded with Customs (Import of Goods at

Concessional Rate of Duty) Rules, 2017. The rules would come in to force from 01.7.17

[Notification No. 68/2017-Cus (N.T.) dated 30.06.17 refers].

3. As far as the implementation of the new rules is concerned, it has been provided that

the tasks performed by the Central Excise officers under earlier rules would be performed by

Customs officers under the new rules. In this connection various proposals have been

received from the field formations regarding transferring Customs functions discharged by

Excise officers to Customs officers. These proposals are under the consideration of the

Board. Till such time Board issues notifications modifying the jurisdiction of

Commissionerates of Customs which will take over the Customs work performed in Central

Excise Commissionerates, the functions bestowed upon the Deputy Commissioner of

Customs or Assistant Commissioner of Customs having jurisdiction over the premises in the

new rules, shall be continued to be performed by the officers of the jurisdictional Central

Excise Commissionerates like before. Since the necessary legal empowerment of Central

Excise officials as officers of Customs under the Customs Act, 1962 is already in place,

therefore, there should not be any difficulty in complying with the new rules.

4. Difficulties, if any, in this regard may be brought to the knowledge of the Board.

5. Hindi version will follow.

Yours faithfully

(Zubair Riaz)Director (Customs)Tel: 011-23093908


F. No. 450/08/2015-Cus.IVGovernment of IndiaMinistry of Finance

Department of Revenue(Central Board of Excise and Customs)

To

New Delhi dated the 1st July, 2017

All Principal Chief Commissioner/Chief Commissioner of Customs & Central ExciseAll Principal Commissioner/Commissioner of Customs & Central ExciseAll Principal Chief Commissioner/Chief Commissioner of Customs/Customs (Preventive)All Principal Commissioner/Commissioner of Customs / Customs (Preventive)

Sir/ Madam,

Subject: Export procedure and sealing of containerized cargo-regarding.

Goods and Service Tax has become operational from 01-07-2017. In the GST regime, thegoverning provisions related to exports are contained in section 16 of the Integrated Goods andService Tax Act, 2017 (IGST Act). Supplies of goods and services for exports have been categorizedas 'Zero Rated Supply' implying that goods could be exported under bond or Letter of Undertakingwithout payment of integrated tax followed by claim of refund of unutilized input tax credit or onpayment of integrated tax with provision for refund of the tax paid.

2. With the onset of GST, extant procedures relating to export of goods viz. claim ofrebate/refund, stuffing of containers at the factory, warehouse or any other place from where thegoods are intended to be exported etc. would require review of the existing procedures. In thisregard, attention is drawn to notification No's 42/2001-CE (N.T.) to 45/2001-CE (N.T.) both dated26.6.2001 detailing the procedure to be followed for the export of goods on payment of terminalexcise duty and 19/2004-CE (N.T.) and 20/2004-CE (N.T.), both dated 06.09.04, without paymentthereof.

A. Procedure of Export

3. Any person making zero rated supply (i.e. any exporter) shall be eligible to claim refundunder either of the following options, namely: -

(a) he may supply goods or services or both under bond or Letter of Undertaking, subject tosuch conditions, safeguards and procedure as may be prescribed, without payment ofintegrated tax and claim refund of unutilized input tax credit; or

(b) he may supply goods or services or both, subject to such conditions, safeguards andprocedure as may be prescribed, on payment of integrated tax and claim refund of such taxpaid on goods or services or both supplied, in accordance with the provisions of section 54(Refunds) of the Central Goods and Services Tax Act or the rules made there under (i.e. theCentral Goods and Service Tax Rules, 2017).

4. For the option (a) above, procedure to file refund has been outlined in the Central Goodsand Service Tax Rules, 2017. The exporter claiming refund of unutilized input tax credit will filean application electronically through the Common Portal, either directly or through a FacilitationCentre notified by the GST Commissioner. The application shall be accompanied by documents asprescribed in the said rules. Application for refund shall be filed only after the export manifest oran export report, as the case may be, is delivered under section 41 of the Customs Act, 1962 inrespect of such goods. The formats for furnishing bond or LUT for export of goods have beenseparately notified under COST Rules, 2017. The said formats are attached herewith for easyreference.

5. For the option (b), broadly the procedure is that a registered person shall not be required tofile any application for refund of integrated goods and services tax paid on supply of goods forexports. The shipping bill, having inter-alia GST invoice details, filed by an exporter shall bedeemed to be an application for refund of integrated tax paid on the goods exported out of India andsuch application shall be deemed to have been filed only when the person in charge of theconveyance carrying the export goods duly files an export manifest or an export report covering thenumber and the date of shipping bills or bills of export and the applicant has furnished a valid returnin FORM GSTR-3. The details of the relevant export invoices contained in FORM GSTR-1 shallbe transmitted electronically by the common portal to the Customs system and the said system shallin turn electronically transmit back to the common portal a confirmation that the goods covered bythe said invoices have been exported out of India. Upon receipt of information regarding furnishingof valid return in FORM GSTR-3 from the common portal, the Customs system shall process theclaim for refund and an amount equal to the integrated tax paid in respect of each shipping bill orbill of export shall be electronically credited to the bank account of the applicant mentioned in hisregistration particulars. Government has allowed a grace period to the registrants to file returnsunder the new GST Law. Therefore, this refund procedure shall as a consequence come intooperation only when the registrants file the above mentioned returns. Further, the exporters are freeto avail option (a) or option (b). The refund shall be governed by the provisions of the section 16 ofthe IGST Act.

~ 2-

6. In order to ensure smooth transition from the earlier export procedure to the procedure beinglaid down for export of goods under the GST regime, the existing Shipping Bill formats (bothmanual/ electronic) have been modified to make them compliant with the IGST law. New formatsof the Shipping Bill have been made applicable already. ARE-1 procedure which was beingfollowed is dispensed with except in respect of commodities to which provisions of Central ExciseAct would continue to be applicable.

B. Sealing of Containers

7. Board has in the past issued various circulars both on the Excise and Customs side on theissue of sealing of containers. A gist of these Circulars and the subject matter dealt in them is givenin the annexure to this circular. At present, there are three categories of containers which arrive atthe port/ICD:

a. Containers stuffed at factory premises or warehouse under self-sealing procedure.

b. Containers stuffed / sealed at factory premises or warehouse under supervision ofcentral excise officer.

c. Containers stuffed and sealed at Container Freight Stations/ Inland Container Depot.

8. For the sake of uniformity and ease of doing business, Board has decided to simplify theprocedure relating to factory stuffing hitherto carried out under the supervision of the Central Exciseofficers. It is the endeavor of the Board to create a trust based environment where compliance inaccordance with the extant laws is ensured by strengthening Risk Management System andIntelligence setup of the department. Accordingly, Board has decided to lay down a simplifiedprocedure for stuffing and sealing of export goods in containers.

9. It has been decided to do away with the sealing of containers with export goods by CBECofficials. Instead, self-sealing procedure shall be followed subject to the following:

The exporter shall be under an obligation to inform the details of the premises whether afactory or warehouse or any other place where container stuffing is to be carried out, to thejurisdictional customs officer.

The exporter should be registered under the GST and should be filing GSTRI and GSTR2.Where exporter is not a GST registrant, he shall bring the export goods to a Container FreightStation/Inland Container Depot for stuffing and sealing of container. However, in certainsituations, an exporter may follow the self-sealing procedure even if he is not required to be

111.

IV.

registered under GST Laws. Such an exception is available to the Status Holders recognizedby DGFT under a valid status holder certificate issued in this regard.

Any exporter desirous of availing this procedure shall inform the jurisdictional CustomOfficer of the rank of Superintendent or Appraiser of Customs, at least 15 days before thefirst planned movement of a consignment from his/her factory/ premises, about the intentionto follow self- sealing procedure to export goods from the factory premises or warehouse.The jurisdictional Superintendent or an Appraiser or an Inspector of Customs shall visit thepremises from where the export goods will be stuffed & sealed for export. The jurisdictionalSuperintendent or Inspector of Customs shall inspect the premises with regard to viabilityof stuffing of container in the premises and submit a report to the jurisdictional DeputyCommissioner of Customs or as the case may be the Assistant Commissioner of Customswithin 48 hours. The jurisdictional Deputy Commissioner of Customs or as the case may bethe Assistant Commissioner of Customs shall forward the proposal, in this regard to thePrincipal Commissioner/Commissioner of Customs who would grant permission for self-sealing at the approved premises. Once the permission is granted, the exporter shall furnishonly intimation to the jurisdictional Superintendent or Customs each time self-sealing iscarried out at approved premises. The intimation, in this regard shall clearly mention theplace and address of the approved premises, description of export goods and whether or notany incentive is being claimed.

Where the visit report of the Superintendent or an Appraiser or an Inspector of Customsregarding viability of the stuffing at the factory/ premises is not favorable, the exporter shallbring the goods to the Container Freight Station /Inland Container Depot/Port for sealingpurposes.

Self-Sealing permission once given by a Principal Commissioner/Commissioner of Customsshall be valid for export at all the customs stations. The customs formation granting the self-sealing permission shall circulate the permission along with GSTIN of the exporter to allCustom Houses/Station concerned.

VI.

VII.

Transport document for movement of self-sealed container by an exporter from factory orwarehouse shall be same as the transport document prescribed under the GST Laws. In thecase of an exporter who is not a GST registrant, way bill or transport challan or lorry receiptshall be the transport document.

The exporter shall seal the container with the tamper proof electronic-seal of standardspecification. The electronic seal should have a unique number which should be declared inthe Shipping Bill. Before sealing the container, the exporter shall feed the data such as nameof the exporter, IEC code, GSTIN number, description of the goods, tax invoice number,

-q-

name of the authorized signatory (for affixing the e-seal) and Shipping Bill number in theelectronic seal. Thereafter, container shall be sealed with the same electronic seal beforeleaving the premises.

viii. The exporter intending to clear export goods on self-clearance (without employing aCustoms Broker) shall file the Shipping Bill under digital signature.

ix. All consignments in self-sealed containers shall be subject to risk based criteria andintelligence, if any, for examination / inspection at the port of export. At the port/ICD as thecase may be, the customs officer would verify the integrity of the electronic seals to checkfor tampering if any enroute. The Risk Management System (RMS) is being suitablyrevamped to improvise the interdiction/ examination norms. However, random orintelligence based selection of such containers for examination/scanning would continue.

10. Board has decided that the above revised procedure regarding sealing of containers shall beeffective from 01.09.2017. A future date has been prescribed since the returns under GST have beenpermitted to be filed by 10.09.17 and also with the purpose to give enough time to the stakeholdersto adapt to the new procedures. Therefore, as a measure of facilitation, the existing practice ofsealing the container with a bottle seal under Central Excise supervision or otherwise wouldcontinue. The extant circulars shall stand modified on 01.09.2017 to the extent the earlier procedureis contrary to the revised instructions given in this circular.

11. Suitable public Notices may be issued in this regard. Difficulty faced, if any, may be broughtto the notice of the Board.

12. Hindi version will follow.

Yours faithfully,

/t Kje,(Zubair Riaz)

Director (Customs)

Annexure

sr.No

ReferenceNumber

Date Subject

1 952/1 3/2011-CX. 08-09-11 Stuffing of export containers - Procedure

892/1 2/2009-CX 23-07-09 Exports - Self-sealing/certification facility extended for export ofnon-xcisable agricultural products

860/1 8/20,07-CX 22-11-07 Exports under Free Shipping Bills - Mandatory self-sealing of containers

741/57/2003-CX. 02-09-03 Exports to Nepal and Bhutan - Self-sealing and self-certificationfacility not applicable

736/52/2003-CX. 11-08-03 Exports - Self-certification and self-sealing facility extended to allcategories of Manufacturer-Exporters-Extension of facility of self-sealing to all categories of manufacturer exporters.

481/47/99-CX 23-08-99 Containers Sealing of packages/Containers procedure Relaxed-modifies426/59/98-CX in so far as furnishing tentative date and time of exportplan by manufacturer exporter is concerned.

445/11/99-CX 17-03-99 Exports Special facility of self-certification and self-sealing to largemanufacturer Exporter Further instructions. Para 7 (duty of customsofficers at the place of export) of 426/59/98-CX is deleted in view ofCircular 6/2002-Cus. [90/98-cus. was rescinded vide 31/2002-cus].

426/59/98-CX 12-10-98 Introduction of facility of self-sealing to manufacturers who have paidCentral Excise duty exceeding Rs. 10 crores in the preceding financialyear in cash or by debit in current account or manufacturer-exporterswho have been accorded the status of Super Star Trading House, StarTrading House, Trading House or Export House under the provisions ofthe Export - Import Policy announced by the Government from time totime.

6/2002-Cus 23.1.2002 Export- procedure, as also norms for examination of self-sealedcontainers at the port of export.

10 83/99-Cus 14-12-99 Export Simplification in procedure for movement of export goods on thebasis of. Self-certification and reduced percentage of physicalexamination-Dispensing off with routine examination at gateway ports.

FORM GST RFD-11

Furnishing of bond or Letter of Undertaking for export of goods or services

l.GSTIN

2. Name

3. Indicate the type of document furnished Bond: [~ Letter of Undertaking [~1

4. Details of bond furnished

Sr. No.

1

.

Reference no. of the bankguarantee

2

Date

3

Amount

4

Name of bankand branch

5

Note - Hard copy of the bank guarantee and bond shall be furnished to the jurisdictionalofficer.

5. Declaration -

(i) The above-mentioned bank guarantee is submitted to secure the integrated taxpayable on export of goods or services,

(ii) I undertake to renew the bank guarantee well before its expiry. In case I/We failto do so the department will be at liberty to get the payment from the bank againstthe bank guarantee,

(iii) The department will be at liberty to invoke the bank guarantee provided by us tocover the amount of integrated tax payable in respect of export of goods orservices.

Signature of Authorized Signatory

NameDesignation / StatusDate

Bond for export of goods or services without payment of integrated tax(See rule 96)

I/We of. hereinafter called "obligor(s)", am/are held and firmly bound to thePresident of India (hereinafter called "the President") in the sum of. rupees to be paid tothe President for which payment will and truly to be made.

I/We jointly and severally bind myself/ourselves and my/our respective heirs/ executors/administrators/ legal representatives/successors and assigns by these presents; Datedthis day of. ;

WHEREAS the above bounden obligor has been permitted from time to time to supply goods orservices for export out of India without payment of integrated tax;and whereas the obligor desires to export goods or services in accordance with the provisions ofclause (a) of sub-section (3) of section 16;

AND WHEREAS the Commissioner has required the obligor to furnish bank guarantee for anamount of. rupees endorsed in favour of the President and whereas theobligor has furnished such guarantee by depositing with the Commissioner the bank guarantee asafore mentioned;The condition of this bond is that the obligor and his representative observe all the provisions of theAct in respect of export of goods or services, and rules made thereunder;

AND if the relevant and specific goods or services are duly exported;AND if all dues of Integrated tax and all other lawful charges, are duly paid to the Government alongwith interest, if any, within fifteen days of the date of demand thereof being made in writing by thesaid officer, this obligation shall be void;

OTHERWISE and on breach or failure in the performance of any part of this condition, the sameshall be in full force and virtue:

AND the President shall, at his option, be competent to make good all the loss and damages, fromthe amount of bank guarantee or by endorsing his rights under the above-written bond or both;

I/We further declare that this bond is given under the orders of the Government for the performanceof an act in which the public are interested;

IN THE WITNESS THEREOF these presents have been signed the day hereinbefore written by theobligor(s).

Signature(s) of obligor(s).Date:Place :

Witnesses(1) Name and Address(2) Name and Address

(year)Accepted by me this.

OccupationOccupation

.day of (month).

of(Designation)for and on behalf of the President of India.".

Letter of Undertaking for export of goods or services without payment of integrated tax

(See rule 96)To

The President of India (hereinafter called the "President"), acting through the proper officer

I/We of. (address of the registered person)having Goods & Services Tax Identification NumberNo , hereinafter called "the undertaker(s) includingmy/our respective heirs, executors/ administrators, legal representatives/successors and assignsby these presents, hereby jointly and severally undertake on this day of

to the President

(a) to export the goods or services supplied without payment of integrated tax within timespecified in sub-rule (9) of rule 96 ;

(b) to observes all the provisions of the Goods and Services Tax Act and rules made thereunder,in respect of export of goods or services;

(c) pay the integrated tax, thereon in the event of failure to export the goods or services, alongwith an amount equal to eighteen percent interest per annum on the amount of tax not paid, fromthe date of invoice till the date of payment.

I/We declare that this undertaking is given under the orders of the proper officer for theperformance of enacts in which the public are interested.

IN THE WITNESS THEREOF these presents have been signed the day hereinbefore writtenby the undertaker(s)

Signature(s) of undertaker(s).

Date :Place :

Witnesses(1) Name and Address(2) Name and AddressDatePlace

(year)Accepted by me this.

OccupationOccupation

.day of (month).

of(Designation)

for and on behalf of the President of India

Indian Customs gears up for GST roll-out

Guidance Note for Importers and Exporters

I. Introduction:

The purpose of this guidance note is to bring clarity about the impact of GST,which would come into force

with effect from 01.07.2017, for importers and exporters.

On the imports side there would be no impact on levy of Basic Customs duty, Education Cess, Anti-dumping

duty, Safeguard duty and the like. However, the Additional duties of Customs, which are in common

parlance referred to as Countervailing Duty (CVD) and Special Additional duty of Customs (SAD), would

be replaced with the levy of Integrated Goods and Services Tax(IGST), barring a few exceptions.On the

exports side, export would be treated as zero-rated supply. Under zero-rated supply IGST paid on export

goods or the input tax credit proportionate to the goods and services consumed in goods exported under bond

/LUT would be refunded.

A brief summary of the changes that would impact importers and exporters upon roll out of GST are

encapsulated below:

Imports under GST

II. Duties at the time of import:

In the GST regime, IGST and GST Compensation cess will be levied on imports by virtue of sub-

sections (7) &(9) of Section 3 of the Customs Tariff Act, 1975. Barring a few commodities such

as pan masala, certain petroleum products which attractlevy of CVD, majority of importswould

attract levy of IGST. Further, a few products such as aerated waters, tobacco products, motor

vehicles etc, would also attract levy of GST Compensation Cess, over and above IGST. IGST

andGST Compensation cess, wherever applicable, would be levied on cargo that would arrive on

or after 1st July, 2017. It may also be noted that IGST would also be levied on cargo which has

arrived prior to 1st July but a bill of entry is filed on or after 1st July 2017.Similarly ex-bond bill

of entry filed on or after 1st July 2017 would attract IGSTand GST Compensation cess, as

applicable.In the case where cargo arrival is after 1st July and an advance bill of entry was filed

before 1st July along with the payment of duty, the bill of entry may be recalled and reassessed by

the proper officer for levy of IGST and GST compensation Cess, as applicable.

III. Duty Calculation:

IGST rate: IGST rates have been notified through notification 01/2017-Integrated Tax (Rate),

dated 28-06-2017. IGST rate on any product can be ascertained by selecting the correct Sl. No. as

per description of goods andtariff headings in the relevant schedules of the notification. Importers

are advised to familiarize themselves with IGST and GST compensation cess rates, schedule and

exemptions which are available on CBEC website. The Customs duty calculator would be made

available on CBEC and ICEGATE website.There are seven rates prescribed for IGST- Nil,

0.25%, 3% 5%, 12%, 18% and 28%. The actual rate applicable to an item would depend on its

classification and would be specified in Schedules notified under section 5 of the IGST Act,

2017. The rates applicable to goods of Chapter 98 are as under:

• 9801- Project Imports- 18%

• 9802- Laboratory Chemicals- 18%

• 9803- Passenger baggage – Nil Rate

• 9804- Specified Drugs and medicines for personal use- 5%

• 9804- Other drugs and medicines for personal use- 12%

• 9804- All other dutiable goods for personal use- 28%

Likewise, different rates of tax have been notified for goods attracting Compensation Cess which

is leviable on 55 item descriptions (of supply). These rates are mostly ad valorem. But some also

attract either specific rates (e.g. coal) or mixed rates (ad valorem + specific) as for cigarettes. The

coverage of the goods under GST compensation cess isavailable on CBEC website along with

their HSN codes and applicable cess rates.The IGST Rates of Goods, Chapter wise IGST rate,

GST Compensation Cess rates, IGST Exemption/Concession are available on CBEC website for

trade and departmental officers as well.

Valuation and method of calculation: IGST is leviable on the value of imported goods and

for calculating integrated tax on any imported article, the value of such imported goods

would be the aggregate of -

(i) the value of imported article determined under sub-section (1) of section 14 of the

Customs Act, 1962 or the tariff value fixed under sub-section (2) of the that

section and

(ii) any duty of Customs chargeable on that article under section 12 of the Customs

Act, 1962 and any sum chargeable on that article under any law for the time being

in force as an addition to, or as duty of Customs but does not include to the tax

referred in the sub-section 7 (IGST) and sub-section 9 (Compensation Cess).

The value of the imported article for the purpose of levying GST Compensation cess shall be,

assessable value plus Basic Customs Duty levied under the Act, and any sum chargeable on

the goods under any law for the time being in force, as an addition to, and in the same manner

as, a duty of customs. These would include education cess or higher education cess as well as

anti-dumping and safeguard duties.The inclusion of anti-dumping duties and safeguard duty

in the value for levy of IGST and Compensation Cess is an important change. These were not

hitherto included in the value for the levy of additional duty of customs (CVD) or Special

Additional Duty (SAD).The IGST paid shall not be added to the value for the purpose of

calculating Compensation Cess.

Although BCD, Education Cesses and IGST would be applicable in majority of cases, however,

for some products CVD, SAD or GST Compensation cess may also be applicable. For different

scenarios the duty calculation process has been illustrated in Annexure - I of this document.

IV. Changes in import procedures:

Importer Exporter Code (IEC): In GST regime, GSTIN would be used for credit flow of IGST

paid on import of goods. Therefore, GSTIN would be the key identifier. DGFT in its Trade

Notice No. 09 dated 12.06.2017 has statedthat PANwould be theImport Export code (IEC).

However, while PAN is identifier at the entity level, GSTIN would be used as identifier at the

transaction level for every import and export. Further, in scenarios where GSTIN is not

applicable, UIN or PAN would be accepted as IEC. It is advised that all importers need to quote

GSTIN in their Bills of Entry in addition to IEC. In due course of time IEC would be replaced by

PAN / GSTIN.

Bill of EntryRegulations andFormat: To capture additional details in the Bill of entry such as

GSTIN, IGST rate and amount, GST Compensation Cess and amount, the electronic as well as

manual formats of Bill of entry including Courier Bill of entry are being amended. For the benefit

of the trade, modified Forms have been hosted on the departmental website, www.cbec.gov.in.

Further, suitable notifications shall be issued to amend the relevant regulations and introduce

modified Forms.

V. Import under Export Promotion Schemesand duty payment throughEXIM scrips:

Under the GST regime, Customs duties will be exempted on imports made under export

promotion schemes namely EPCG, DEEC (Advance License) and DFIA. IGST and

Compensation Cess will have to be paid on such imports.

The EXIMscrips under the export incentive schemes of chapter 3 of FTP (for example MEIS and

SEIS) can be utilised only for payment of Customs dutiesor additional duties of Customs, on

items not covered by GST,at the time of import. The scrips cannot be utilized for payment

http://www.cbec.gov.in/

ofIntegrated Tax and Compensation Cess. Similarly, scripscannot be used for payment of CGST,

SGST or IGST for domestic procurements.

VI. EOUs and SEZ:

EOUs/EHTPs/STPs will be allowed to import goods without payment of basic customs duty

(BCD) as well additional duties leviable under Section 3 (1) and 3(5) of the Customs Tariff Act.

GST would be leviable on the import of input goods or services or both used in the manufacture

by EOUs which can be taken as input tax credit (ITC). This ITC can be utilized for payment of

GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed

under Section 54(3) of CGST Act. In the GST regime, clearance of goods in DTA will attract

GST besides payment of amount equal to BCD exemption availed on inputs used in such finished

goods. DTA clearances of goods, which are not under GST,would attract Central Excise duties as

before.

VII. Imports / Procurement by SEZs

Authorised operations in connection with SEZs shall be exempted from payment of IGST.

Hence, there is no change in operation of the SEZ scheme.

VIII. Project Import:

Currently for items imported under project import scheme (i.e. CTH 9801), unique heading under

the Central Excise Tariff, for the purposes of levy of CVD does not exist. Therefore, under the

Central Excise Tariff, each item is getting classified in a heading as per its description and duty is

paid on merit. In the GST regime, for the purpose of levying IGST all the imports under the

project import scheme will be classified under heading 9801 and duty shall be levied @ 18%.

IX. Baggage:

Full exemption from IGST has been provided on passenger baggage. However, basic customs

duty shall be leviable at the rate of 35% and education cess as applicable on the value which is in

excess of the duty free allowancesprovided under the Baggage Rules, 2016.

X. Refunds of SAD paid on imports:

The need for SAD refunds arose mainly on account of the fact that traders or dealers of imported

goods were unable to take credit of this duty (which was a Central tax) while discharging their

VAT or Sales tax liability (which was State levy) on subsequent sale of the goods. Unless

corrected through a mechanism such as refund (of one of the taxes) this would have resulted in

“double” payment of tax.

With the introduction of GST on 01.07.2017, credit of “eligible duties” in respect of inputs held

in stock and inputs contained in semi-finished or finished goods held in stock, is permissible to

registered persons not liable to be registered under the existing law (for instance, VAT dealers)

under transitional provisions (Section 140(3) of the CGST Act). Further, eligible duties as defined

in sub-section (10) include SAD. In other words, dealers/ traders can take ITC of SAD paid on

goods imported prior to 1st July 2017. Sub-section (5) of section 140 also allows a registered

person to take credit of eligible duties in respect of inputs received on or after 1 July 2017 but the

duty on which has been paid under the existing law. These provisions taken together ensure that

SAD paid by dealers/ traders can be set-off against their GST liability as and when imported

goods are supplied by them in the domestic market.However, certain items which are out of the

GST net would be eligible for SAD refunds as earlier.

XI. Imports and Input Tax Credit (ITC):

In GST regime, input tax credit of the integrated tax (IGST) and GST Compensation Cess shall

be available to the importer and later to the recipients in the supply chain, however the credit of

basic customs duty (BCD) would not be available. In order to avail ITC of IGST and GST

Compensation Cess, an importer has to mandatorily declare GST Registration number (GSTIN)

in the Bill of Entry. Provisional IDs issued by GSTN can be declared during the transition period.

However, importers are advised to complete their registration process for GSTIN as ITC of IGST

would be available based on GSTIN declared in the Bill of Entry. Input tax credit shall be availed

by a registered person only if all the applicable particulars as prescribed in the Invoice Rules are

contained in the said document, and the relevant information, as contained in the said document,

is furnished in FORM GSTR-2 by such person.

Customs EDI system would be interconnected with GSTN for validation of ITC. Further, Bill of

Entry data in non-EDI locations would be digitized and used for validation of input tax credit

provided by GSTN.

Exports under GST

XII. Drawback:

No amendments have been made to the drawback provisions (Section 74 or Section 75) under

Customs Act 1962 in the GST regime. Hence, the drawback scheme will continue in terms of

both section 74 and section 75. Option of All Industry Rate (AIR) as well as Brand Rate under

Section 75 shall also continue.

Drawback under Section 74 will refund Customs duties as well as Integrated Tax and

Compensation Cess paid on imported goods which are re-exported.

At present Duty Drawback Scheme under Section 75 neutralises Customs duty, Central excise

duty and Service Tax chargeable on any imported materials or excisable materials used or taxable

services used as input services in the manufacture of export goods. Under GST regime, Drawback

under Section 75 shall be limited to Customs duties on imported inputs and Central Excise duty

on items specified in Fourth Schedule to Central Excise Act 1944 (specified petroleum products,

tobacco etc.) used as inputs or fuel for captive power generation.

A transition period of three months is also being provided from date of implementation of GST

i.e. 1.7.2017. During this period, existing duty drawback scheme under Section 75 shall continue.

For exports during this period, exporters can claim higher rate of duty drawback (composite AIR)

subject to conditions that no input tax credit of CGST/IGST is claimed, no refund of IGST paid

on export goods is claimed and no CENVAT credit is carried forward. A declaration from

exporter and certificate from jurisdictional GST officer in this regard has been prescribed in the

notification related to AIRs. This will prevent double availement of neutralisation of input taxes.

Similarly, the exporter can claim brand rate for Customs, Central Excise duties and Service Tax

during this period.

Exporters also have the option of claiming only the Customs portion of AIR and claim

refund/ITC under GST laws.

All Industry Rates for the transition period shall be notified before 1.7.2017. The AIR for post

transition period shall be notified in due course of time.

The certificates from jurisdictional GST officer as referred above may not be available during

initial days. As per Systems design, whenever higher rate (composite rate) of drawback is

claimed, the non-availment of credit certificate is a mandatory document and unless it is recorded

as available, shipping bill will not move to LEO stage. In such a situation, all field formations

shall ensure that exports are not delayed for requirement of the said certificate. The way out in

such situation for the exporter is to amend the shipping bill to claim lower rate. The exporter will

have an option to file supplementary claim as per Drawback Rules at a later date once the

certificate is obtained. A similar issue in respect of Cenvat credit has been examined and clarified

in the past vide Instruction no. 609/159/2016-DBK dated 13.03.2014.

Secondly, it could be possible that export goods may be manufactured by using both Central

Excise/Service Tax paid and CGST/IGST paid inputs and inputs services or only CGST/IGST

paid inputs and inputs services. In such situation, an exporter opting to claim composite rate of

duty drawback during transition period has to give specified declaration and produce certificates

as stated above so that he does not claim double benefit. Exporter will have to reverse the ITC if

any availed and also ensure that he does not claim refund of ITC/IGST. Requisite certificate from

GST officer shall also be required to this effect. As mentioned earlier, exporters will also have

option of claiming credit/refund of CGST/IGST and claim Customs rate drawback.

XIII. Refund of IGST paid on exports and Export under Bond scheme:

Under GST regime exports would be considered as zero-rated supply. Any person making zero

rated supply (i.e. any exporter) shall be eligible to claim refund under either of the following

options, namely: ––

(a) he may supply goods or services or both under bond or Letter of Undertaking, subject to

such conditions, safeguards and procedure as may be prescribed, without payment of

integrated tax and claim refund of unutilised input tax credit; or

(b) he may supply goods or services or both, subject to such conditions, safeguards and

procedure as may be prescribed, on payment of integrated tax and claim refund of such

tax paid on goods or services or both supplied, in accordance with the provisions of

section 54 (Refunds) of the Central Goods and Services Tax Act or the rules made there

under (i.e Refund Rules 2017).

For the option (a),procedure to file refund has been outlined in the Refund Rules under GST. The

exporter claiming refund of IGST will file an application electronically through the Common

Portal, either directly or through a Facilitation Centre notified by the GST Commissioner. The

application shall be accompanied by documentary evidences as prescribed in the said

rules.Application for refund shall be filed only after the export manifest or an export report, as the

case may be, is delivered under section 41 of the Customs Act, 1962 in respect of such goods.

For the option (b),the shipping bill filed by an exporter shall be deemed to be an application for

refund of integrated tax paid on the goods exported out of India and such application shall be

deemed to have been filed only when the person in charge of the conveyance carrying the export

goods duly files an export manifest or an export report covering the number and the date of

shipping bills or bills of export and the applicant has furnished a valid return.

For both option (a) and (b) exporters have to provide details of GST invoice in the Shipping bill.

ARE-1 which is being submitted presently shall be dispensed with except in respect of

commodities to which provisions of Central Excise Act would continue to be applicable.

XIV. Change in export Procedures:

Electronic as well as manual Shipping Bill formats including Courier Shipping Bill are being

amended to include GSTIN and IGST related information so as to ensure that the export benefits

like refund of IGST paid as well asaccumulated input tax credit can be processed seamlessly. For

the benefit of the trade, modified Forms have been hosted on the departmental website,

www.cbec.gov.in. Further, suitable notifications shall be issued to amend the relevant regulations

and introduce modified Forms.

XV. Export under factory stuffing procedures:

In the context of GST, taking into account the obligation of filing GSTR1 and GSTR2 by

exporters who are registered under GST, Board intends to simplify the procedure relating to

factory stuffing hitherto carried out under the supervision of Central Excise officers. It is the

endeavour of the Board to create a trust based environment where compliance in accordance with

the extant laws is ensured by strengthening Risk Management System and Intelligence

mechanism of the department. Suitable circular in this regard would be issued. Until then the

extant instructions on the issue may be followed.

Note: The above guidance note should not be used in anyquasi-judicial or judicial proceedings,

where only the relevant legal texts need to be referred to.


ANNEXURE-I

Case 1.-Where product attracts IGST but not CVD

Suppose Assessable Value (A.V.) including landing charges =Rs. 100/-

(1) BCD- 10%

(2) IGST-12%

(3) Education cess – 2%

(4) Higher education cess -1%

In view of the above parameters, the calculation of duty would be as below:

(a) BCD = Rs. 10 [10% of A.V.]

(b) Education cess- Rs. 0.2 [2% of (a)]

(c) Higher education cess- Rs. 0.1 [1% of (a)]

(d) IGST- Rs. 13.236 [A.V.+(a) +(b) +(c)]x12%

Case 2. Where product does not attract CVD but attract IGST as well as compensation cess


(1) BCD- 10%

(2) IGST-12%



(5) Compensation cess- 10%


(a) BCD = Rs. 10 [10% of A.V.]

(b) Education cess- Rs. 0.2 [2% of (a)]

(c) Higher education cess- Rs. 0.1 [1% of (a)]

(d) IGST- Rs.13.236 [A.V.+(a)+(b)+(c)]x12%

(e) Compensation cess- Rs. 11.03 [A.V.+(a)+(b)+(c)]x 10%

Case 3. Where product attract both CVD & IGST:


(1) BCD- 10%

(2) CVD- 12%

(3) IGST-28 %




(a) BCD = Rs. 10 [10% of A.V.]

(b) CVD = Rs 13.2 [ 12% of (A.V.+ BCD)

(c) Education cess- Rs. 0.464 [2% of (BCD+CVD)]

(d) Higher education cess- Rs. 0.232 [1% of (BCD+CVD)]

(e) IGST- Rs. 34.69 [A.V.+(a)+(b)+(c)+(d)]x 28%

Case 4. Where product attract CVD, IGST& Compensation cess:


(1) BCD- 10%

(2) CVD- 12%

(3) IGST-28 %



(6) Compensation cess-10%


(a) BCD = Rs. 10 [10% of A.V.]

(b) CVD = Rs 13.2 [ 12% of (A.V.+ BCD)

(c) Education cess- Rs. 0.464 [2% of (BCD+CVD)]

(d) Higher education cess- Rs. 0.232 [1% of (BCD+CVD)]

(e) IGST- Rs. 34.69 [A.V.+(a)+(b)+(c)+(d)]x 28%

(f) Compensation cess – Rs. 12.389 [A.V.+(a)+(b)+(c)+(d)]x 10%

Note: In cases where imported goods are liable to Anti-Dumping Duty or Safeguard Duty,

calculation of Anti-Dumping Duty or Safeguard duty would be as per the respective notification

issued for levy of such duty. It is also clarified that value for calculation of IGST as well as

Compensation Cess shall also include Anti-Dumping Duty amount and Safeguard duty amount.

Information guide on GST

CBEC WEBSITE – www.cbec.gov.in

GSTN WEBSITE - www.gstn.org

GST COUNCIL WEBSITE - www.gstindia.com/tag/gst-council

CBEC MITRA – [email protected]

Toll free helpline – 1800-1200-232

Toll-free number - 1800 425 4251

Twitter Handle of CBEC - @CBEC_India

OUTREACH PROGRAMMES –Available on CBEC website (under Column of GST

AWARENESS)-www.cbec.gov.in


http://www.gstn.org/

http://www.gstindia.com/tag/gst-council

mailto:[email protected]


Circular No. 21/2017 -Customs F. No. 609/54/2017-DBK

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Transcript of Circular No. 21/2017 -Customs F. No. 609/54/2017-DBK