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No.14/005/106/2006
June 14, 2006
Members of the Council,
Dear Members,
Sub: Levy of 4% Special Additional Duty of Customs (Special CVD)
We invite, your kind attention to Council’s Circular No.14/005/093/2006 dated March 1, 2006, enclosing therein Highlights of Union Budget 2006-07, announced by Hon’ble Union Minister for Finance on Feb 28, 2006.
As members are aware, one of the announcements made in the Union Budget 2006-07 relates to introduction of a new levy of 4% Special additional duty of Customs (Special CVD) on all imports effective from March 1, 2006. Accordingly, the Customs authorities are levying 4% Special CVD for all those imports which are subject to Basic Customs Duty and Additional Duty of Customs
(CVD).
However, the 4% Special CVD is exempted on certain imported goods which are exempt from Basic Customs Duty and Additional Duty of Customs (levialbe under Section 3(1) of the Customs Tariff Act 1975).
But there have been several interpretation issues at different Custom Houses regarding the levy of Special CVD of 4% in respect of goods imported under various
Export Promotion Schemes like DFRC, DEPB, Target Plus DFCE and EPCG etc.
In this regard, the Department of Revenue in the Ministry of Finance, Government of India has considered all such references and issues, concerning 4% Special CVD. The Department of Revenue has now issued Customs Circular No.18/2006 dated June 5, 2006, clarifying about the applicability of 4% Special CVD on imports effected under different Export Promotion Schemes, enshrined in the Foreign Trade Policy.
The copy of the said Customs circular is appended herewith for information and necessary guidance of member-exporters. Please note and accordingly clear the import consignments under different Export Promotion Schemes.
Thanking you,
Yours faithfully,
K Abdul Sattar Khan
Assistant Director
Custom
Circular
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