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04 November 2016

AEOs allowed to pay Customs duties on fortnightly basis

Customs duties payable on import of goods in India can now be paid on fortnightly basis by specified Authorised Economic Operators - importers. New Rules namely, Deferred Payment of Import Duty Rules, 2016 have been issued by the Central Board of Excise and Customs (CBEC) on 2nd of November, 2016.
 
The new rules will be effective from 16-11-2016. Importers certified under Authorized Economic Operator programme as AEO (Tier-Two) and AEO (Tier-Three), after being declared as eligible by the Revenue department, would be allowed to pay Customs duties electronically as per following schedule:

  1. For goods corresponding to Bill of Entry returned for payment from 1st to 15th of any month, by 17th of that month;
  2. For goods corresponding to Bill of Entry returned for payment from 16th to last day of any month other than March, by 2nd of the following month;
  3. For goods corresponding to Bill of Entry returned for payment from 16th till 29th of March, by 31st of March;
  4. For goods corresponding to Bill of Entry returned for payment from 30th to 31st March, by 2nd of April.


The new Rules also state that this facility would be withdrawn in case the importer fails to pay duty in full by due date more than once in a period of three consecutive months. The Rules also provide that the benefit will not be restored unless the importer pays duty in full along with the interest. Advantage of these provisions would also not be available to goods which have not been assessed or not declared by the importer in the entry made under the Customs Act.
It may be noted that Section 47 of the Customs Act, 1962 was amended this year by Finance Act, 2016, with effect from 14-5-2016, to state that Central Government may permit certain class of importers to make deferred payment of duty.