PAYMENT OF CUSTOMS DUTY ON DUTY-FREE ITEMS

CSIR Lr.No.15-1(127)/2007-Vig. dt. 20-8-2009 is reproduced below which is self explanatory.

"It has come to the notice of CSIR Vigilance that one C&F agent has issued Customs Payment Advice in respect of an item which is absolutely Duty-free. As per the advice of the C&F Agent, the Institute has also made the payment towards Customs besides issuing the Customs Duty (CD) Exemption Certificate. The Bill of Entry furnished by C&F agent bears a manipulated product code (Harmonization System (HS) Code 90271000) which attracts 10% CD whereas the actual product code is 90272000 which is a Custom-free item. This has resulted in a loss to the Council even if the said duty is assumed to have been paid to the Customs Department.

Keeping in view the above instances, all COSPs/SPOs/SOs (S&P) are advised to invariably ascertain the product code/HS Codes and check whether the same is a customable or Custom free item. The Agents may also be advised to mention the exact product/import code (HS Code) in the quotations and invoices so as to avoid any confusion and possible malpractice by the C&F Agents."


Source : Harmony, Sept-Oct.2009 issue.