Deferred Payment of Import Duty Rules, 2016, Eligible Importers, ICEGATE Procedure

Deferred Payment of Import Duty

The CBEC has notified the Deferred Payment of Import Duty Rules, 2016, i.e. fortnightly payment of duty by importers. Also CBEC has notified importers who shall be eligible for Deferred Payment of Import Duty which is applicable w.e.f. 16 Nov. 2016 along with procedure at ICEGATE, as under:

A. CBEC Notifies Deferred Payment of Import Duty Rules, 2016

CBEC Notification No. 134/2016 Customs (NT) dt. 2 Nov. 2016 F.No. 450/81/2016-Cus.IV

G.S.R.(E)— In exercise of the powers conferred by the proviso to sub-section (1) of sections 47 and section 156 of the Customs Act, 1962 (52 of 1962), the Central Government hereby makes the following rules, namely :-

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.

2. Definitions

(1) In these rules, unless the context otherwise requires,-

(a) “Act” means the Customs Act, 1962 (52 of 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 sub section (1) of section 47 of the Act.

(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.

3. Application

These rules shall apply to eligible importer who have been notified under the proviso to sub-section (1) of section 47 of the Act.

4. Information about intent to avail benefit of notification

(1) An eligible importer who intends to avail the benefit under sub-section (1) of section 47 of the Act shall intimate to the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, having jurisdiction over the port of clearance, his intention to avail the said benefit.

(2) The Principal Commissioner of Customs or the Commissioner of Customs, 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.

5. Payment of duty

The eligible importer shall pay the duty by the dates specified hereunder inclusive of the period (excluding holidays) as mentioned in sub-section (2) of section 47 of the Act, namely:-

(a) for goods corresponding to Bill of Entry returned for payment from 1st day to 15th day of any month, the duty shall be paid by the 17th day of that month;

(b) for goods corresponding to Bill of Entry returned for payment from 16th day till the last day of any month other than March the duty shall be paid by the 2nd day of the following month;

(c) for goods corresponding to Bill of Entry returned for payment from 16th day till the 29th day of March, the duty shall be paid by the 31st March;

(d) for goods corresponding to Bill of Entry returned for payment from 30th day of March to 31st day of March, the duty shall be paid by the 2nd April.

6. Manner of payment

The eligible importer shall pay the duty electronically:

Provided that the Assistant Commissioner or the Deputy Commissioner of Customs, as the case may be, for reasons to be recorded in writing, may allow payment of duty by any mode other than electronic payment.

7. Deferred payment not to apply in certain cases

An eligible importer who fails to pay duty in full by due date more than once in a period of three consecutive months shall not be permitted to make deferred payment.

Provided that the facility of deferred payment shall not be restored unless the eligible importer has paid the duty in full along with the interest.

8. Exemption in respect of certain goods

Nothing contained in these rules shall apply to the goods which have not been assessed or not declared by the importer in the entry made under the Act.

 Deferred Payment of Import Duty Rules, 2016: CBEC Notification 134/2016 CS (NT) 2 Nov. 2016

B. CBEC Notifies Eligible Importers for Deferred Payment of Import Duty

CBEC Notification No. 135/2016 Customs (NT) dt. 2 Nov. 2016 F. No. 450/81/2016-Cus.IV

G.S.R.(E)— In exercise of the powers conferred by proviso to sub-section (1) of section 47 of the Customs Act, 1962 (52 of 1962), the Central Government permits the following class of importers to make deferred payment of import duty:

(i) 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 Central Board of Excise and Customs.

 Eligible Importers – Deferred Payment of Import Duty: CBEC Notification 135/2016 Customs (NT)

C. Procedure at ICEGATE to avail benefits of Scheme of Deferred Payment of Custom Duty

1. Kind attention is invited to Customs Notification No. 134/2016-Customs (N.T) & 135/2016-Customs (N.T.) dated 2″ November, 2016 permitting Importers certified under Authorized Economic Operator Programme as AEO (Tier-Two) and AEO (Tier-Three) to make deferred payment of duty of Customs.

2. Every importer certified as AEO-T2/ AEO-T3 shall obtain ICEGATE Login which is essential to avail benefits envisaged in the AEO Programme. Further, in order to avail the facility of deferred payment, every AEO-T2/AEO-T3 is advised to nominate a nodal person borne on their establishment who would be responsible for authenticating all the customs related transactions on behalf of the AEO. Since the option of deferred payment has been extended only to AEO (Tier-Two) and AEO (Tier-Three), it is important for the AEO to exercise due caution in nominating the AEO nodal person to prevent misuse of facility of deferred payment. The contact details of AEO nodal person shall also be provided in ICEGATE login to ensure that the information reaches in time at their registered mail for authentication.

3. As per rule 4 of the Deferred Payment of Import Duty Rules, an eligible importer who intends to avail the benefit of deferred payment shall intimate to the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, having jurisdiction over the port of clearance, his intention to avail the said benefit. An intimation addressed to the AEO Programme Manager with a copy to the Principal Commissioner(s) of Customs or the Commissioner(s) of Customs, as the case may be, having jurisdiction over the port(s) of clearance shall be considered as an intimation by an eligible importer of his intention to avail the said benefit.

4. The eligible importer who intends to make deferred payment shall indicate the same using flag “D” in the Payment Method column of Bill of Entry filed. In order to ensure that the facility of deferred payment is availed only by the eligible importer, option has been provided in ICEGATE Login for AEO Nodal person to acknowledge such intent and authenticate using One Time Password (OTP) sent to his registered e-mail address. The Nodal person would be able to authenticate multiple Bills of Entry at once. Only on such authentication by the eligible AEO importer, customs clearance would be provided for the consignment under deferred payment of duty Rules.

5. The due dates for deferred payment of import duty by eligible importers are specified in rule 6 of the said Rules. The eligible importer also has an option to select the challans belonging to the deferred period and pay at anytime, even before the due date at their convenience.

 CBEC Circular No. 52/2016-Cus dt. 15 Nov. 2016 F.No.450/81/2016-CusIV

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