Updates in CUSTOMS

CUSTOMS ACT, 1962

1. Deferment Payment Scheme – related rules notified

.
Sec 47 of Customs Act, 1962 was amended by FA, 2016 to provide ‘deferred payment facility’ to the importer.
Scheme  Deferral of the payment of Customs duty/ charges for up to certain period (Period as notified in Rules)
 No requirement to pay cash on each Customs import entry. Instead, aggregate liability of a period is
discharged by single payment..

 Hitherto, Customs provides for payment of duty on TRANSACTION BASIS.

Rules have been notified.

Deferred Payment of Import Duty Rules, 2016

Rule Subject Matter
R-1 Short title and commencement
(1) These rules may be called the Deferred Payment of Import Duty Rules, 2016.
(2) They shall come into force on the 16th day of November, 2016.

R-2 Definitions
(1) In these rules, unless the context otherwise requires,-
(a) “Act” means the Customs Act, 1962;
(b) “due date” means the date specified in rule 5 of these rules;
(c) “eligible importer” means any class of importers notified under proviso to Section 47(1) of
the Act.
nd
N/N 135/2016- Cus (NT) – 2 Nov, 2016
CG permits the following class of importers to make deferred payment of import duty:
• Importers certified under Authorized Economic Operator programme as AEO (Tier-
Two) and AEO (Tier-Three)

Explanation: For the purpose of this notification, AEO means Authorized Economic Operator
certified by the Directorate General of Performance Management under the CBEC.

(2) Words and expressions used and not defined herein but defined in the Act, shall have the
meanings respectively assigned to them in the Act.

R-3 Application
These rules shall apply to eligible importer who have been notified under the proviso to Section 47(1)
of the Act.

R-4 Information about intent to avail benefit of notification

(1) An eligible importer who intends to avail the benefit under section 47(1) of the Act shall intimate
to the Principal CC or CC, as the case may be, having jurisdiction over the port of clearance, his
intention to avail the said benefit.
(2) The Principal CC or CC, as the case may be, shall, upon being satisfied with the eligibility of the
importer to pay the duty under these rules, allow the eligible importer to pay the duty by due
dates specified in rule 5.