quesRegarding CTA 3(1) additional custom duty

We are sole importers of a ophthalmic product which is an orbital implant exclusively manufactured by a company in USA. There are no similar articles produced or manufactured in India or anywhere else in the world. Our query is as follows: We are currently classified under chapter 9021 (3900) our custom duty structure is as follows: Basic Custom Duty 7.5% SHE Cess 2%, 1% Add. Duty 4% With refer to Custom Tariff Act 1975 3(1) since no similar article is prod or manf in India, then why add duty?

  • ansAt the time of import as you have rightly noted customs duty is levied in the form of BCD (which varies from product to product), Education cess 3% (Secondary + higher). Thereafter, there are two more kinds of additional duty:
    1. CVD: Additional duty equivalent of excise duty (Commonly known as CVD) this is the duty which may be imposed if imported goods are manufactured in India. Your point that the imported goods are not manufactured in India thus no CVD should be imposed is not a valid argument as Section 3(1) of Customs Tariff Act says “like goods if manufactured in India”. Thus even if imported goods are not currently manufactured in India CVD will be applicable.
    2. SAD: Then there is Special Additional Duty (Commonly known as SAD) this is the duty which is imposed to counter CST. This duty is generally 4% subject to exemptions. The logic behind this levy is similar to that of CVD, i.e. “like goods if manufactured in India” what will be the tax liability.
    Note as per you the classification of the imported product is 9021 3900. There are certain an exemptions for products falling under Chapter 90 of classification (Schedule I) as per notification no. 12/2012-Cus. Similarly there are certain exemptions from CVD as well for goods falling under Chapter 90 of Schedule I. The exact classification can be determined only after checking the documents describing the imported goods. The classification taken by USA can be different from India as USA follows 6-digit classification and India follows 8-digit classification. From the description you have given about the imported product, the probable classification appears to be 9021 2100 or 9021 39 00. But the same can be confirmed only after reading the description of the imported goods.

    Advocate Deepak Thackur

      Beriwalah Bagh, Delhi

  • Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Customs & Central Excise Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.
Consult best Customs & Central Excise lawyers in India

Similar questions

Fine imposed of lakhs in a customs case. Can government attach my property?

I have sent a courier to a friend outside India. It had few clothes a…

Goods seized by the custom authorities while travelling to India. What action can we take?

Respected sir my name is girish kumar sharma,currently i am working in cag department at…

Customs & Central Excise Lawyers in India

Advocate D S Chadha

 Experience: 5 years

Advocate Jai Dehadrai

  Hauz Khas
 Experience: 6 years

Advocate Harsimran Kaur

  Safdarjang Enclave
 Experience: 12 years

Advocate Charu Mathur

  Supreme Court of India
 Experience: 17 years

View all >>

Quick Consult

Get 15 Minutes of Expert Legal Advice on Phone right now

Ask a Free Question

Post a Question online and get free advice from multiple lawyers by email

Find a Lawyer

Easily find and book private consults with top lawyers in India

Get Fee Estimate

Receive multiple quotations for your legal requirement instantly