Eligible Importers may avail benefit of Deferred Import Duty payment without Intimation:CBIC

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1. The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday notified the Deferred Payment of Import Duty (Amendment) Rules, 2020, which seeks to amend Deferred Payment of Import Duty Rules, 2016.

2. Deferred duty payment is a mechanism for delinking duty payment and Customs clearance. It is based on the principle ‘Clear First-Pay later’. The aim is to have a seamless dock to warehouse transit in order to facilitate just-in-time production.

3. Deferred duty payment refers to the payment of duties and taxes for products declared over a predetermined period, for example, 14 days, after the arrival of the merchandise, in one sum by bank exchange or other non-money instalment technique, to the Customs ledger or by withdrawal by Customs from the broker’s Customs account.

4 In the Deferred Payment of Import Duty Rules, 2016, Rule 4, which pertains to “Information about intent to avail benefit of notification” shall be omitted.

5. Rule 4 says, “an eligible importer who intends to avail the benefit under sub-section (1) of section 47 of the Act shall intimate to the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, having jurisdiction over the port of clearance, his intention to avail the said benefit.

6. As a part of the ease of doing business focus of the Government of India, the Central Board of Excise and Customs (CBEC) has rolled out the AEO (AUTHORIZED ECONOMIC OPERATOR) programme. It is a trade facilitation move wherein benefits are reached out to the substances who have shown solid inside control frameworks and eagerness to conform to the laws controlled by the CBEC.

7. The Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, shall, upon being satisfied with the eligibility of the importer to pay the duty under these rules, allow the eligible importer to pay the duty by due dates specified in rule 5.”

“Rules 5 to 8 shall be re-numbered as Rules 4 to 7, respectively,” the notification said.

8. The notification will be enforced from 19 August 2020.

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