In two of our export consignments, the Customs allowed the goods to be exported but held up release of our duty drawback on the suspicion that the goods are overvalued with intent to get higher amount of drawback. We had submitted the data as per the computed value prescribed at Rule 5 of the Customs (Determination of Value of Export Goods) Rules 2007. Later, however, the Customs decided to release the duty drawback based on a lower value determined by a valuation committee at the Customs House in terms of Rule 6 of the above referred Export Valuation Rules. Is this correct?
No. The Customs cannot resort to Rule 6 of the said Export Valuation Rules without rejecting the value declared by you in terms of Rule 5 of the said Rules, especially in a situation when you have submitted necessary data to support the basis for adopting the said Rule 5. Secondly, even if the Customs manage to give sufficient reasons to reject the value declared by you, the basis and methodology adopted for determining the value under Rule 6 of the said Rules should be revealed to you, giving you enough opportunities to rebut the same. In this connection, you may refer to the case of Kalima Exim [(2023) 9 Centax 19 (Tri.-Mad)] on the same issue.
From our SEZ unit, we want to send our goods for job-work to another SEZ unit. We understand that we have to follow the procedure as per Rule 41 and 42 of the SEZ Rules, 2006. Do we have to follow the procedures as per Section 143 of the CGST Act, 2017 also?
Both the SEZ law and the GST laws apply for SEZ units. It is in case of any inconsistency that the SEZ law will prevail by virtue of Section 51 of the SEZ Act, 2006.
What is a seller’s contingency policy in trade transactions?
When goods are sold on FOB or CFR terms, the buyer is required to take out marine insurance policy. Sometimes, it can so happen that the buyer refuses or fails to accept the shipping documents or goods. In such cases, the title to the goods and the risks revert to the seller. If some damage to the goods occurs in such a situation, the seller may find himself without an insurance policy. To cover the marine risks in such situations, the seller may opt for a seller’s contingency policy.
What are the working hours for authorised dealers (ADs) for handling foreign exchange transactions?
Rule 1.1 of the FEDAI Rules, 2019 says that the normal working hours of ADs for foreign currency to Indian rupee transactions for clients is 9 a.m. to 5 p.m. on all days, except Saturdays, Sundays and holidays. However, ADs may undertake transactions for their clients beyond normal working hours also. The transactions for individual persons, including value cash transactions, can be undertaken even on Saturdays, Sundays and holidays, as per banks internal policy.