CIRCULAR NO. 04/2012-Cus
F.
No. 450/93/2011-Cus.IV
Government
of India
Ministry
of Finance
Department
of Revenue
Central
Board of Excise & Customs
Customs-IV
Section
**********
New
Delhi, 17th February, 2012
To
All Chief Commissioners
of Customs,
All Chief Commissioners
of Central Excise,
All Director
Generals/Chief Departmental Representatives (CESTAT),
All Commissioners of
Customs,
All Commissioners of
Central Excise and
All Commissioners of
Central Excise & Customs
Sir/Madam,
Subject: Adoption
of uniform Customs Procedure for calculating the contents of Iron Ore –
clarification regarding.
**********
Several references have
been received in the Board highlighting divergent practices for
calculation of iron contents from Iron Ore being followed at different Ports
for charging Export duty. In this regard two types of calculation methods are
being followed i.e. on the basis of Wet Metric Ton (WMT) and other on the basis
of Dry Metric Ton (DMT).
‘that
is because the duty is relatable to weight and therefore, once the iron content
is determined keeping in mind the total weight, the percentage can be
determined separating the iron contents from the rest of the impurities
inclusive of moisture and thereafter ascertain in which category the lumpy iron
would fall for the purpose of charging duty….’
3. In
light of the observation by the Apex Court that export duty is chargeable
according to Fe contents, and to maintain uniformity all over the custom
houses, it is clarified that for the purpose of charging of export duty the
assessment of Iron ore for determination of Fe contents shall be made on Wet
Metric Ton (WMT) basis which in other words mean deducting the weight of
impurities (inclusive of moisture) out of the total weight/Gross Weight to
arrive at Net Fe contents.
4. In
case of any difficulty in arriving at the net Fe content, assessment may be
based on test result which directly determines the Fe contents.
5. Pending
assessments on the issue, if any, should be finalized accordingly.
6. Difficulties,
if any, faced in the implementation of this circular, may be immediately
brought to the notice of the Board.
Yours
faithfully,
(A.K.Goel)
Senior
Technical Officer
Tariff
Unit
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