CIRCULAR No.46/2001-CUS.
Dated 10th August, 2001
Notification 36/2001-Cus(NT) dated 3rd August, 2001-Clarification on tariff
values in respect of Crude Palm Oil, RBD Palm Oil, and RBD Palmolein
Attention is invited to Notification 36/2001-Cus(NT), dated 3rd August 2001,
issued by the Central government laying down tariff values in respect of Crude
Palm Oil, RBD Palm Oil, and RBD Palmolein falling under Chapter 15 of the First
Schedule to the Customs Tariff Act, 1975. Certain doubts appear to have been
raised in trade & industry circles in regard to date of effect of these tariff
values specially w.r.t. consignments which have already arrived and are pending
clearances for home consumption - whether from the port/ air cargo/ ICDs etc. or
from warehouses. Some doubts on other related issues are also being raised.
These have been examined and I am directed to clarify the position as follows:-
(i) As the notification has been issued by the Central Government for
publication in the Gazette of India Extraordinary, on 3rd August, the said
notification becomes effective from 3rd August, 2001 itself;
(ii) The tariff values laid down in the said notification are values to be taken
for assessment purposes and are thus inclusive of insurance, freight, and
landing charges;
(iii) Section 15 of Customs Act, 1962 lays down the crucial date for
determination of Tariff Valuation (apart from rate of duty) - except for baggage
& imports by post. Thus, where Bills of entries for home consumption have been
filed under Section 46 before 3rd August, then Tariff Values will not be
applicable - unless it was a prior entry bill of entry filed before entry
inwards of the vessel. In the later category of cases, it is the date of entry
inwards which is crucial for applying Tariff Values. Thus, if entry inwards for
the related vessel is 3rd August or later the new Tariff Values fixed for such
home consumption bills of entries will apply - even if the Bill of entry may
have been filed earlier to 3rd August;
(iv) As regards goods cleared from a warehouse under section 68 of the Customs,
1962 Section 15(1)(b) of the Customs Act applies. Thus, if the actual clearances
from a warehouse take place on or after 3rd August, Tariff Values will be
applicable for determining value for assessment purposes - even if ex-bond bill
of entry may have been presented earlier to 3rd August, 2001;
(v) For the purposes of conversion of the Tariff Values as notified in US$ into
Indian rupees, the rate of exchange applicable shall be the rate notified by the
Central Government in the Department of Revenue from time to time (under
sub-clause (i) of clause (a) of sub-section (3) of section 14 of the Customs
Act, 1962) and as in force on the date on which the bill of entry is presented
under section 46 of the Customs Act.
2. Any difficulty faced in the implementation of the notification may be brought
to the notice of the Board.
Sd/-
(Rajendra Singh)
Under Secretary (Cus.IV)