Neelanjit Das’ Post

Customs duty cuts announced on gold in the Budget have gotten mixed feedback so far. In this conversation with Pratiksha . and me, #CBICChairman Sanjay Agarwal said that the move aimed to tackle twin troubles--give impetus to the gems and jewellery sector and also keep a check on smuggling of the yellow metal. "The rate of duty was high for any kind of production in the country, so to encourage that sector and to provide the material for exports, rates were to be rationalised." While this is justified, the reasoning on cutting customs duty to curb smuggling is starkly contrasting to what FM Sitharaman had previously said--that there was no direct correlation between smuggling and customs duties. Speaking about the new indirect tax regime, Agarwal said the growth in GST collections that could have come from simplification of the system and integration of processes has already happened and, going forward, its collection would depend on how the economy grows.   He said that the #taxbuoyancy expected from increased compliance has already happened. "That is now plateauing." Read more on tax slab merging, future of compensation cess, among other topics here:

https://lnkd.in/eFC-9nzx So, the UK's customs duty receipts have dropped from £5.8bn in the year ended March 2023 to £4.5bn in the year ended March 2024. For context, this represents less than 1% of total HMRC revenue, and is reported in the category of "other taxes". The simple reason for the reduction in customs duty revenue is that there were fewer imports - a drop in value of imports of £66bn, consistent with economic downturn. However, the average duty rate has also dropped from 0.92% to 0.8%, indicating that increasing numbers of importers are getting more savvy about claiming preference and using customs special procedures to get duty relief. £564bn of goods imported could be an attractive target for the Chancellor to raise more than the £4.5bn collected last year. If the average rate of customs duty were to be increased from 0.8% to 2.0%, this would yield revenue of £11.3bn, and may even benefit UK manufacturing by deterring imports. Even Insurance Premium Tax raises more revenue than customs duty (£8.1bn) and Air Passenger Duty is not far behind (£3.9bn), so it would seem there is plenty of scope for customs duty to be a more meaningful contributor to the Treasury, rather than a nuisance tax. #HMRC #annualreport #customsduty #chancelloroftheexchequer #ukmanufacturing Crowe UK @croweglobal

!! Did you know that the CBSA is making significant changes to the way it collects duties and taxes on goods imported into Canada? CARM Release 3 changes everything. Get informed! As of October 21st, CARM Release 3 begins. The responsibility to pay duties and taxes is the sole responsibility of the importer. Unless otherwise arranged with their customs broker, under CARM R3 importers must pay all customs duties, GST and other levies assessed on their imported goods DIRECTLY to CBSA. Read below to learn about your options. 👇 👇

The Ministry of Finance has recently taken a decisive step towards enhancing clarity in the implementation of its prior Circular concerning foreign currency restrictions on specific import categories. In response to a direction from the government and a formal request from the Customs Commission, as outlined in Letter No. 4/0429/16 dated ታሀሳሰ 17, 2016 (December 27, 2023), the Ministry has undertaken steps necessary in providing necessary clarity in the implementation of its prior Circular concerning foreign currency restrictions. In a move aimed at providing clear guidance and addressing ambiguities emanating from Circular ክሂገ1/7/52 issued by the Ministry of Finance on ጥቅምት 4, 2015 (October 14, 2022), a significant decision has been issued. Here is a summary of the key points of the decision: 1.      It is clarified that the ban does not extend to goods and vehicles imported under the Franco Valuta regime. 2.      Imports of goods and vehicle for which bank approval is secured approved before መጋቢት 22, 2015 E.C (March 31, 2023), are eligible for a one-time clearance after checking the customs documentations by the Ethiopian Customs Commission. 3.      Vehicles meeting the definition of "new vehicle" (as per Excise Tax Proclamation No. 1287/2015, Art. 2(24)) during their arrival at a neighboring port or customs station are treated as new, regardless of prior delays due to foreign exchange bans. 4.      Duty-free shop imports remain exempt from the foreign exchange ban. 5.      The items outlined in the Circular's table must be treated as per the description of the item. 6.      The ban is applicable solely to ready-to-use goods, excluding raw materials or production inputs. However, the Ethiopian Custom Commission added further requirement of obtaining support letter from Ministry of Trade and Regional Integration, Ethiopian Commission or other relevant organs indicating the items to be imported serve as industrial inputs. 7.      Foreign currency usage is prohibited for vehicles not meeting the SKD/CKD standard. However, the Ethiopian Customs Commission has temporarily suspended the implementation of the Ministry of Finance's Circular, with the exception of points 5 through 7. Additionally, the Ethiopian Customs Commission has conveyed that further guidance regarding the implementation of the Circular will be communicated in due course regarding points 1 to 4. Please find the circular posted below for your reference.

Union Budget FY25: Customs Duty On Imports, Tax Relief For Seafarers The Centre may eliminate tax deducted at source (TDS) for Indian seafarers working on Indian flagged vessels operating in coastal waters to level the playing field with foreign-flagged vessels. Giving a fillip to local manufacturing, Customs duty on fishing vessels, tugs and pusher crafts and light vessels may be raised from 5% to 50%. The Ministry of Shipping has proposed to raise the duty to 50% for the next 10 years and thereafter by 100% from the 10th year to 25 years. The decision also falls in line with the Maritime India Vision 2030. The Centre may announce production linked incentive scheme for container manufacturing. Financial incentives based on volume and value addition criteria will also be offered to domestic manufacturers of containers. The Centre may eliminate tax deducted at source (TDS) for Indian seafarers working on Indian flagged vessels operating in coastal waters to level the playing field with foreign-flagged vessels.

There is an ongoing theory of Government reducing customs duty on Gold because they wanted to pay lesser on maturing SGBs. I don't agree with this and have my own view points. I may be wrong and open for discussion, but here are my reasons: ✔ SGBs were first issued in late 2015 and few tranches have already matured. For FY16, total investment came around ₹1,300 cr FY17 - 3,500 cr FY18 - 1,900 cr FY19 - 350 cr FY20 - 2,300 cr It was only after this that investments went above ₹10,000 cr For these small numbers, do we think Govt will cut the duty to get just ~10% reduced price to pay? ✔ The higher amount of SGBs are subscribed in recent years, so they mature 6-8 years later. Will the current Govt think about that much in advance when they don't know whether they will be in power or not? ✔ SGB scheme was floated specifically to reduce the demand for physical gold and shift a part of the domestic savings used for purchase of gold, into financial savings. It was a great thought. Gold price used to be around ₹2,600/gm back then. In today's time, before the recent dip, they were around ₹7,600/gm. This is around 14% CAGR. Yes, it's a little higher than what one can expect Gold to give, but when Govt launched this scheme, what would they have been thinking? At least 10-11% for sure? Also, they have a natural hedge with so much of physical gold already in their vaults. So it's not that bad an outcome for them that they have to resort to these cheap tactics. ✔ In July 2022, the custom duty was increased 5%, now it's slashed. If really they were tensed about cash outflow, wouldn't they have thought this back then? Reason that time was (Source: World Gold Council) "The context behind the hike in gold duty is the extreme depreciation of the INR. With rising crude oil prices after Russia’s invasion of Ukraine, the INR has faced severe pressure..." ✔ Moreover, custom duty has been cut on various other products. Agreed, that may be to boost the business, but one shouldn't circle out only for Gold. ✔ One should know, the price of Gold in India is a function of many things. Global price, Import duty, Exchange rate, Mark up If the price has currently fallen, people are getting opportunity to purchase at lower price. If you are bullish on Gold, was it because of Import Duty only? What could you have done if prices had fallen because of global prices or exchange rate? ✔ If you are the one whose SGB is getting matured now, invest them in ETFs. May be the prices rise again. For all the above reasons, I believe custom duty impact has been blown out of proportion. I may be wrong, but I think I am logical.

Customs Update in Budget 2024: 1. The Central Government has proposed to amend Section 28DA of the Customs Act to cover the self-declaration system for origin determination by verified exporters, as adopted in recently entered Free Trade Agreements by Government of India such as agreement with European Free Trade Association (EFTA). 2. The Central Government has proposed to amend Section 65 of the Customs Act governing ‘Manufacture and other operations in relation to goods in a warehouse’. As per proposed amendment, the Central Government can specify ‘manufacturing processes and other operations’ in relation to a class of goods that shall not be permitted in a warehouse. This amendment is in lieu of ACME Heergarh Powertech Pvt Ltd, 2024 (5) TMI 480 Delhi High Court, wherein it was held that Section 65 of the Customs Act does not empower the Central Government to make an exception or to exclude certain category of manufacturing activity from its ambit. To nullify the said judgment, the Central Government has made this amendment and has empowered itself to specify the manufacturing activities which shall not be permitted in a warehouse. 3. Section 6 of the Customs Tariff Act has been omitted which was empowering Central Government to levy protective duties in specified cases. The said section empowered the Central Government to take immediate action to provide for the protection of the interest of any industry established in India. Considering the complicated procedure defined under this Section this omission has been proposed. #customs #budget #BCD #Customsupdate #Financebill

The Ministry of Finance has issued a Notification of the Ministry of Finance dated 19 June 2024 exempt import duty in goods imported with value not exceeding THB 1,500. This is a measurement of taxing goods imported via post. The government wants to charge VAT on goods sold online or e-plat form. Chapter 4 of Customs Tariff Emergency Decree states in category 12 “Imported goods with value not exceeding value prescribed by the Director-General”.  The VAT exemption for imported goods is under the Revenue Code Section 81 (2)(c) “goods classified into duty exemption category under the law on customs tariff”. No provision in the Revenue Code allows the waiver of Section 81 (2)(c) i.e., levy VAT on imported goods under Section 81 (2)(c). It is interesting to find how Revenue Department can legally charge VAT on imported goods with value not exceeding THB 1,500. Does it need the change of Revenue Code Section 81 (2)(c) or not?

𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐞 𝐦𝐢𝐧𝐢𝐬𝐭𝐞𝐫 𝐏𝐢𝐲𝐮𝐬𝐡 𝐆𝐨𝐲𝐚𝐥 𝐦𝐨𝐨𝐭𝐬 𝐛𝐨𝐫𝐝𝐞𝐫 𝐚𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭 𝐭𝐚𝐱 𝐭𝐨 𝐛𝐥𝐮𝐧𝐭 𝐢𝐦𝐩𝐨𝐫𝐭 𝐞𝐝𝐠𝐞 Ministry of Commerce and Industry, Government of India minister Piyush Goyal on Thursday floated the idea of a border adjustment tax (BAT) to address the price disadvantages being faced by local companies against imported products due to multiple local taxes. #BAT is a tax that is imposed on imports in addition to basic custom duties. It seeks to offset the extent of taxes that local producers pay, so that the import tariffs are real. #Tax #PiyushGoyal #CommerceMinistry

Customs Duty: How duty for your car is calculated in Kenya https://lnkd.in/dnrs5s-G