An importer is not acceptable to the duty imposed by Customs Dept. and he wants to pay duty under protest.What should be the precaution he should take, to get the refund in future ?

Hon'ble Supreme Court in the case of ITC LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, KOLKATA -IV on 18.09.2019 held that assessed Bill of Entry is appealable and no separate speaking order is required. Hence If importer wants to apply for refund of customs duty u/s 27, he should appeal against assessed bill of Entry within one year. This ruling is NOT applicable for duty paid under protest. Because the duty paid under protest itself shows Importer's disagreement to the duty imposed and NO NEED TO APPEAL separately.

Whenever an assessee pays duty under protest, it indicates a challenge by him on the demand of duty made by the department. Therefore it is for the department to pass appropriate assessment order considering the protest made by the assessee. If duty is payable under protest, Importer should make sure that his intention  is properly conveyed to the Department by official letter and it has to be recorded in the Bill of Entry by proper officer.

M/S. HDFC BANK LTD. VERSUS PRINCIPAL COMMISSIONER OF GST & CENTRAL EXCISE

31.01.2020

#Customs Law Quick Bites-3

By oversight an Importer has paid duty @ 5% instead of 1% and forgot to avail notification benefit. Is importer eligible to get refund by producing COO with retrospective effect ?

There is no issue of interpretation of notification and the matter is based on fact finding. If the appellant has produced the certificate of country of origin then there is no dispute between the parties. The appellant is required to pay Basic Customs duty at the rate of 1% and excess duty paid by the appellant is to be refunded.Certificate of origin can be produced later-on but with the words ISSUED RETROSPECTIVELY in remarks column.

OKAYA POWER LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE & CUSTOMS, CHANDIGARH 12.04.2017

#Customs Law Quick Bites-2

Whether amendment in the Bills of Entry can be allowed even when the Korean Certificate of Origin was issued at a later date retrospectively and was not available at the time of clearance of the Bills of Entry in contravention of the section 149 of the Customs Act 1962?

Korea-India Comprehensive Economic Partnership Agreement. The manner of proof provided by the Tariff Rules and by virtue of Rule 15 read with paragraph 3(4) of Annexure-III of the Tariff Rules allows the assessee to prove this fact by obtaining the 'Certificate of Origin' not later than one year from the date of shipment of goods. Not only that, in cases where the 'Certificate of Origin' had been issued after seven days but upto one year from the date of shipment, the assessee is further burdened to explain the reason for the same-either being on account of involuntary errors or omissions or any other valid reasons and any other or further requirement that the revenue may claim under the Tariff Rules.

Once the assessee establishes the aforesaid facts, he would be entitled to claim exemption. The stipulation of Section 149 of the Act or any other provisions incorporated under the Act or the Rules for compliance of duty payment may not stand in the way of the assessee to claim exemption under Section 25 of the Act.

 PRINCIPAL COMMISSIONER, NOIDA CUSTOMS COMMISSIONERATE, NOIDA VERSUS M/S SAMSUNG INDIA ELECTRONICS PVT. LTD. ALLAHABAD HIGH COURT 12-12-2017

# Customs Law Quick Bites-1

An importer has filed BoE but refused to pay shipper and collect the original documents from Banker. Now Shipper has find out another buyer in India and amended all the title documents with NOC from first party.New buyer possess clean title documents. IGM has been amended with new buyer name.New buyer has approached Customs to cancel previous Out of Charge and requested to amend BoE in his name and requested for manual OOC.Customs delays the process months together saying that no such precedent case in their jurisdiction and cannot issue manual OOC.Give your solution ?

As per Supreme Court Direction, title owner should be treated as importer as per definition of 'importer' in Section 2(26) should be allowed to pay the dues and take delivery of the cargo. Hence new buyer who is current cargo title owner should be allowed to amend BoE and take delivery of cargo after collecting necessary duties.

AGRIM SAMPADA LTD. VERSUS UNION OF INDIA HIGH COURT OF DELHI 16-01-2004

#Customs Law Quick Bites-1a

20:20 Financial Health Check Up – 20 Financial Self Health check ups - simple mechanism with formulas

Dear friends

Wish you and your family very Happy New year 2020 !!!

We have master health check up schemes to check our health yearly once. I thought there is a need for financial health check up also yearly once. In medical health we have BP, Sugar tests etc with “ normal “ level indicators. Likewise I have identified a simple & easy system to measure our Financial Health with indicators which a layman can also apply easily. If You are pass on all the indicators then  you are financially secured & if you are not pass even in minimum indicators, don’t worry and get it stabilized during 2020.

1. 50:20:30

We do not know how much we can spend and how much minimum amount we need to save out of our monthly income.

50% can be spent on household expenses such as rent, electricity, groceries etc

Minimum 20% must be saved/invested for future in Mutual Fund SIP, Gold ETF, PPF,RD & FD etc  Balance 30% shall be utilized for conveyance, garments, entertainment, hotel expenses etc.,

2. Insurance

An earning person should be sufficiently covered for his life. If a sole earning member is no more then his dependents will be suffering financially to meet out their day to day expenses and will be in debt risk of home loan, car loan etc  Hence, earning member of a family should be covered minimum 35 times of his annual income. For example If a person is earning Rs.10,00,000 per annum then Rs.10,00,000 x 35 = Rs.3,50,00,000. I strongly suggest to have only Term Policy because you can be covered for higher amount at lesser premium. That too you need to take this policy at early stage of life atleast before age of 30.

3. 20 Times Annual Income for Retirement Life

After the age of 40 only many of us will think about retirement life. If you want to live your retirement life peacefully with same present life style without anyone’s financial support then 20 times of your present Annual income should be made available as corpus money. Hence plan early and start save under National Pension Scheme, MF retirement schemes etc

4. EMI’s should be within 40%

We used to buy right from Air Conditioner to Home everything under EMI. Make sure total EMI’s are maximum 40% of your monthly income. Whenever you want to pre close loans make sure to close higher interest loans first. 

5.20/4/10 Car Formula

If you want to buy car then apply this formula.  20 is 20% of car price you should keep as cash reserve towards down payment. 4 is “with in maximum of 4 years close your car loan EMI”. 10 is “ your car loan EMI, fuel expenses should be maximum 10% of your monthly income”

6.How much risky investment ?

Most of us want to invest in Equity shares directly because it’s return is huge at the same time risk also high. But do not know how much we can allocate out of available sources. Simply deduct your age from 100. If your age is 35 then you can invest 65% of funds in equity shares.

7.How much we can use out of Retirement funds in case of emergency ?

Out of Corpus money created for retirement you can use maximum of 4% in case of emergency “in a year”. Otherwise you may fall short after retirement.

8.20/5 Formula for Home Loan

Here 20 is 20% funds you should keep as Initial Down payment. Your total payable EMI amount should be maximum of 5 times of your annual income. For example Annual Income is 15 lakhs hence for 5 years it is 75 lakhs. You are planning to buy house costing 80 lakhs. 20% of 80 lakhs is Rs.16 Lakhs which you need to keep for initial down payment. 80% of 80 Lakhs is Rs.64 Lakhs. Here 64 lakhs is well within 5 years Annual Income.

9.Investment return Doubling Formula “ 72 “

Do you want to know after how many years your investment will be become double ? If you invest @ 8% interest per annum then 72/8=9. I.e after 9 years your investment will be become double.

10.Investment return triple Formula “114”

Do you want to know after how many years your investment will be become triple ? If you invest @ 8% interest per annum then 114/8=14.4  I.e after 14 years  4 months your investment will be become triple.

11.How to find Future value of Money ?

“70” Formula – A price of a product is not constant and it is keep on increasing. Example : Gold.  We need to find out Inflation rate first which is published periodically by RBI. If you take current Inflation rate as 5.5% then 70/5.5= 12.7 i.e after 12 years 7 months your money value will become half i.e If you have Rs.10,000 today after 12.7 years its value will be Rs.5000 only. The reason to find out this, is to calculate how much you should save after adjusting  inflation rate.

 12.What is your Networth ?

Normally a business Organisation is valued by its Networth. Likewise For an Individual also Net worth can be measured. Your age should be multiplied by annual income divided by “10” For example Your age is 30 and Annual Income is 10 lakhs then 30x10/10 = 30 Lakhs must be the Networth. Networth is the total of your bank & cash balance, shares, MF & FD savings and gold etc., When calculate Networth as a thumb rule ancestral property and house property should not be considered.

13.Portfolio Restructuring Formula 5/25

For example if you keep 10 Lakhs in portfolio consisting 70% Equity shares 10% Gold & 20% in Debt funds. When there is valuation change of 5% in equity shares you need to restructure it. Because major 70% is the allocation for equity shares. But In the case of gold the overall allocation is only 10% hence 5% change itself is 50% of it . Hence we should restructure it when there is change of 25% value itself out of total money invested in gold.

14.Emergency Fund

Your Minimum Monthly expenses +EMI  X  6times you need to keep as emergency fund then only you can manage without taking loans. Your Monthly fund requirement is 50K then 6 times of it i.e Rs.3 Lakhs must be kept as Emergency fund in FD, Liquid MF etc

15.Bonus 10:90 Formula

Whenever you get Bonus you can utilize only 10% of if for your expenses. Balance 90% must be used to payback higher interest loans. If there is no loan then must be invested for future requirements.

16.60:40 Asset Allocation

Whenever you invest allocate 60% in Liquid assets ( convertible to cash quickly ) and only 40% in Illiquid assets

17.Credit Card Formula “30”

Whatever be your Credit card limit, use only 30% of it. This will help you to keep good credit score and will be a standard discipline in utilization of card.

18.Maximum of 2 Credit cards

Do not accept Credit cards even some says it is free. Each card you need to pay annual charges and multiple cards may hit your CIBIL score. Maximum 2 Credit cards only suggested to an individual person.

19.How much should you Owe ?

You should take loan maximum of 50% of your total assets. That also when you are approaching retirement age, you need to make Loan Zero and assets must be debt free.

20.How to invest Retirement Funds ?

Out of retirement funds, 70% should be invested in risk free standard return investments and balance 30% only can be invested in high risk/high reward investments.

Apply these formulas during 2020 and have a wealthy future.

Thank You.

Courtesy : Vikatan

HOW TO CRACK CBLR 2018 RULE 6 EXAMS ??

**Remarks updated on : 05.09.2020

Once CBLR'18 - 2021 online exam announcement is received from NACIN, We shall post important Q&A & tips free of cost on regular basis through EXIMBLOGS telegram channel. Hence subscribe to EXIMBLOGS channel now itself. Search eximblogs in telegram mobile app (or) visit www.eximblogs.com and click on the telegram app icon given in the top right hand side social media links.

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Refer below our previous post for 2020 online exam :

TIPS TO CLEAR CUSTOMS BROKER LICENSING REGULATIONS 2018 RULE 6 EXAM

Dear friends,

As you are aware CBLR18 Rule 6 March 2020 exam will be conducted online with negative marks for wrong answers. In objective type exams exact answer is must hence Rule 6 exam preparation strategy is completely changed and candidates needs to have in depth knowledge of Customs Act 1962 and all important regulations. Because of negative mark system a candidate has to answer at least 105 questions correctly. Because 105 Q x 3 marks = 315 less 45x-1 marks 45 = Minimum passing marks  = 270 hence you need to target at least 115 correct answers for safer side.

Unlike G card exams, apart from usual customs clearance procedures candidates will be tested for their in depth knowledge in Customs Act, Customs Tariff Act, GST, CBLR’18, Important customs regulations and rules, Inco terms 2020, LC procedures, allied Acts such as FSSAI, BIS etc.,

Now let us see how to crack CBLR’18 Rule 6 exam ??

Based on past experience, I suggest the following shall be the best strategy to crack Rule 6 exam;

A.    Candidates should know Customs Act 1962 thoroughly right from its year of enactment.

Example:

1.When Customs Act enacted & what is its Act number? Ans: 1962  & Act 52 of 1962

2.How many chapters are there in Customs Act & How many sections ? Ans: 17 chapters And 161 sections

B.    Candidates must by heart all important section numbers and its section title.

Example:

1.Which section deals with Prohibition of import and export of goods ? Ans: Sec11

2.Which section deals with power to grant exemption from duty ? Ans : Sec 25

C.   Especially following sections candidate will be expected to strong enough ;

Sections 2, 7,  11, 12,13, 14, 15, 16, 17, 18, 20, 21,22, 23, 25,26A,  27,28, 28AA,  28J, 30, 45, 46, 47, 48, 49, 50, 51, 53, 54 59, 60, 61, 65, 69, 74, 75, 77,84, 85, 92, 104, 105, 106A, 107, 110, 110A, 111,112,113,114,114A, 115,122, 127B, 128, 129, 130, 130E, 135, 142, 144, 147, 156, 157 

D.   Candidates should know the following areas in detail practically;

CBLR’18 regulations ( Obligations of Customs Broker is very important )  2.import/export documentation 3.Warehousing 4.Duty assessment and valuation including Customs Valuation Rules 2007 ( import/export ) 5. Refund of Duty 6.Transit, transshipment & coastal trade 7.Duty Draw back and Export promotion schemes 8.Baggage, import and export by Post and Courier 9.Adjudication, confiscation and penalty 10. Post clearance audit and Risk Management system 11. Free trade agreements, COO requirements and duty exemptions

E.    Do not miss latest and important basic points related to Indirect tax !!!

For example IGST applicability on imports, when BE late filing charges introduced ? within how many days from IGM Inward date we need to file BE ?  How much late filing charges imposed and it’s slab ? what is SVB and its important notifications governing SVB procedures ? SIIB role etc.,

F.    By heart important notification numbers !!!

Example : Reimport notifications 45 & 46 of 2017 and its differences

G.   Customs Tariff Act 1975

Even though it is practically impossible to memorize all the tariff items, by heart chapter number and its chapter heads. Don not miss to study chapter 77 is reserved for future use  !!!! Study General interpretation Rules and understand it.

All the best

Prepared By

Rajesh Audithyan M.com, MBA, ACS, LL.B,

Mob:9380229514

CBLR13 Rule 6 qualified

EXIM BLOGS, Chennai

Visit https://eximblogs.blogspot.com/ for more & free informations

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Date of Issue : 20.10.2019

Do you know ? IGST 0.1% only applicable on purchase when the buyer intend to export !! Very important GST notification unknown to many Merchant exporters and Customs Brokers !!!

When compared to past 41 months Indian export data, August 2019 is the worst month since Exports from India is reduced to 6%. Another side Exporters are facing cash crunch due to delay and confusions in IGST refund. Even though various IGST refund week programmes are conducted still Exporters are not getting refund on time to invest back in Exports.

Let us see one important mechanism with which merchant exporters can control cash outflow by way of GST. Illustration : A Chennai based exporter buys turmeric from a Erode based seller and plans to export it as it is. Now he has to buy the product @ 5% GST then apply for IGST refund. But he can pay only 0.1% GST under notification 41/2017 and even get it back after completion of export process.  

Following are the key points ;

·     Notification No 41/2017 Integrated Tax (Rate) dated 23rd October, 2017

·    Applicable for transaction between GST registered seller and registered merchant exporter only

·  Merchant exporter must be registered with an Export Promotion Council or a Commodity Board recognised by the Department of Commerce

·  Product has to be delivered to Port/ICD/CFS/dock directly OR directly to a registered warehouse from where the said goods shall be move for exports customs clearance

·  Merchant exporter can bring export cargoes from various suppliers to his registered warehouse to aggregate goods before export

·        Procurements under this Notification has to be exported within 90 days

·  After export process Merchant exporter has to give copy of Shipping bill to supplier for his GST compliance. Here very importantly he shall give a copy after blocking his overseas buyer name address and price in marker pen to keep his commercials confidential.