Finance Bill: Seeking clarity in Customs laws
The Finance Bill, 2018, proposes several amendments to the Customs laws. The changes will come into effect after it is enacted.
The Customs enforce the prohibitions/restrictions/obligations relating to import or export of goods under about 40 allied laws such as those relating to environment, trademark and so on. It was always difficult for the trade as well as the Customs officers to keep track of the provisions and changes in the allied laws. So, the Finance Bill proposes that these allied laws will be executed only if such prohibitions/restrictions/obligations are notified under the Customs laws, subject to such exceptions/modifications/adaptations as the central government may deem fit. This useful amendment means that the stakeholders need not look beyond the Customs laws to know the prohibitions/restrictions/obligations relating to import or export of goods.
A new chapter XIIA is being inserted on audit, which will cover not only the importers and exporters, but also the custodians, bonded warehouse licensees, Customs brokers and even any other person concerned directly or indirectly in stocking, carrying, selling or purchasing of imported goods or export goods or dutiable goods.
Even when a bill of entry or shipping bill is filed under selfassessment, the Customs will have powers for verifications based on appropriate risk evaluation. Scope of reassessment is being widened. Exports will also get covered under provisional assessment. Binding time limits will be prescribed for submission of information/documents by the importers/exporters and for finalisation of provisional assessment thereafter. New Sections 25A and 25B will empower the government to exempt inward/outward processing of goods i.e., import/export for repairs, further processing or manufacture.
New provisions are being introduced for consultations before issue of show cause notice and issue of supplementary notice. Definite time limits will be prescribed for concluding the adjudication proceedings and except in specified types of cases, if the demand notice is not adjudicated even within the extended period, such proceeding shall be deemed to have been concluded as if no notice had been issued. Option to pay redemption fine will not be available after 120 days, unless appeal is filed. Any person having an importer exporter code will be allowed to seek advance ruling. Aspects beyond mere determination of duty will also be covered under advance ruling. The time limit for pronouncing the ruling is being reduced to three months. Provisions for appeal against advance ruling are being introduced. In certain specified category of cases, Commissioner (Appeals) will be allowed to remand back the matter to original adjudicating authority.
Many provisions are being amended to facilitate clearance of goods by Customs automated system in addition to existing clearance by the proper officer. The concept of electronic credit ledger is being introduced to facilitate payment of taxes, advance deposit, etc. Separate procedures or documentation can be prescribed for different modes of transport. A new provision is being made to allow ‘controlled delivery’ i.e., for allowing goods to pass through to enable identifying persons involved in commission of an offence.