P.N. No. 27/2001 New Custom House,
Imp. Supp. No. 68/2001 Ballard Estate,
Price: 3.30 Mumbai – 400 038
Sub:- Amendment of Section 3 (2) of the Customs Tariff Act, 1975 with effect from 1.3.2001 vide Finance Bill , 2001 – levy of Additional Duty of Customs based on M.R.P. declared on the goods less the abatement, if any from retail sale price, as applicable to such like articles as per Central Excise Notification issued under Sub-Section 2 of Section 4A of Central Excise Act, 1944-regarding…….
I.T.C. (HS) Classification of Export and Import Items, 1997-2002 has already been amended vide Notification No.44 (RE-2000)/1997-2002, dated 24.11.2000 of the Ministry of Commerce and Industry to the effect that all such pre-packaged commodities, which are intended for retail sale, subject to provisions of standards of Weights and Measures (packaged commodities) Rules, 1977, when produced/packed/sold in domestic market, shall be subject to compliance of all the provisions of the said Rules, when imported into India. The provisions of said rules require labeling / declaration / indication of M.R.P., in addition to other particulars on such pre-packaged commodities.
Finance Bill, 2001 proposes to amend Section 3(2) of Custom Tariff Act, 1975 and this amendment takes effect from 1.3.2001 by virtue of the declaration under Provisional Collection of Taxes Act, 1931. Under the amended provision of Section 3(2) of CTA, 1975, the value of the imported article for the purpose of charging countervailing duty shall be deemed to be the retail sale price (MRP) declared on the imported article less such amount of abatement, if any, from such retail sale price as the Central Government, may by notification in the official Gazette, allow in respect of such like article under Sub-section (2) of Section 4A of Central Excise Act, 1944, in the case of goods imported into India –
(a) in relation to which it is required, under the provisions of the Standards of Weights and Measures Act, 1976 or the rules made thereunder any other law for the time being in force, to declare on the package thereof the retail sale price of such article; and
(b) where the like article produced or manufactured in India, or in case where such like article is not so produced or manufacture, then, the class or description of articles to which the imported articles belongs, is the goods specified by notification in the Official Gazette under Sub-section (1) of Section 4A of the Central Excise Act, 1944.
It is also provided in the Explanation under the amended provision that where on any imported article more than one retail sale price is declared, the maximum of such retail sale price shall deemed to be the retail sale price for the purpose of this section.
Such like articles and such amount of abatement referred to in the amended provision of Section 3(2) of CTA, 1975 are given in notification No.5/2001 C.Ex. (N.T.) dated 1.3.2001. The value under section 3(2) of CTA, 1975 for the purpose of calculating Additional Duty of Customs in respect of article appearing in the said notification No.5/2001 C.Ex.(N.T.), where such duty is leviable at any percentage of its value, shall, notwithstanding anything contained in Section 14 of the C.A. , 1962, be the Maximum Retail Price declared on the imported article less the amount of abatement indicated in the said notification for such like article.
It is, therefore, notified for the information and guidance of the trade and industry that the importers of those articles which are specified in notification No.5/2001 C.Ex. (N.T.) dated 1.3.2001 and in any other notification the Central Government may issue in exercise of the powers conferred by Section 4A of C. Ex. Act, 1944, are required to declare in the Bill of Entry including the checklist for EDI the M.R.P. declared on the imported article under the column 13 (value for purposes of Sec.3 of Customs Tariff Act, 1975) together with the rate of abatement, as applicable. Where on any imported article more than one retail sale price is declared, the maximum of such retail sale price should only be declared in column 13 of the Bill of Entry for the purpose of calculating value for levy of countervailing duty. Importers of such goods are also required to declare the MRP on such pre-packaged commodities of imported goods.
However, in the case of packaged goods covered by notification No.44 (RE-2000)/1997-2002 but not subject to levy of Additional Duty of Customs based on MRP, the importers should paste declaration of MRP on the reverse of the Bill of Entry including checklist for EDI.
The importers should ensure that the requirements in terms of Notification No.44 (RE-2000)/1997-2002, DATED 24.11.2000 are complied with all respect and in regards to declaration of MRP on the goods as well as in the Bill of Entry correctly and accurately to facilitate speedy clearance of their consignments. They are also informed
that non-compliance of mandatory requirements both in terms of notification No. 44(RE-2001)/1997-2002 and amended provision of Section 3 would attract penal provisions of the Customs ct, 1962 and the standards of Weights and Measures Act, 1976.
(D. K. ACHARYYA)
CHIEF COMMISSIONER OF CUSTOMS
F. No.S/26-30/2001 A (G)
Copy forwarded for information to :
1. Shri P.N. Malhotra, Member (Customs), Central Board of Excise & Customs, New Delhi
2. Shri R.K. Chakraborti, Member (West Zone) , Central Board of Excise & Customs, New Delhi
3. Shri T.R. Rustagi, Joint Secretary to the Govt. of India, TRU, Central Board of Excise & Customs, New Delhi.
(B. K. SINGH)
ADDIL. COMMISSIONER OF CUSTOMS