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Notification No. 7/2024 – Customs (N.T.) Dated : 24th January, 2024 under Section 28A of Customs Act, 1962 for Non-Levy of Customs Duty on the import of wearables for the period 01.02.2022 to 27.04.2023

Introduction: The Ministry of Finance, through Notification No. 7/2024 – Customs (N.T.) dated 24th January 2024, has issued a significant directive under Section 28A of the Customs Act, 1962. This notification pertains to the non-levy of customs duty on the import of wearables for the period from 1st February 2022 to 27th April 2023.

Detailed Analysis:

1. Background and Amendments: The article commences by highlighting the background, referencing Notification 11/2022-Customs dated 1st February 2022. It outlines the initial exemption of wearable goods from excess customs duty under the First Schedule to the Customs Tariff Act, 1975. The subsequent amendment through Notification No. 33/2023-Customs on 27th April 2023 is also discussed.

2. Proviso and Rule 2(a): A critical aspect covered is the insertion of a proviso in the amended notification, specifically addressing the application of duty rates when goods are presented together in a manner falling under rule 2(a) of the General Rules of Interpretation of the First Schedule. The conditions specified in column (5) are explained.

3. Government Satisfaction and Practice: The Central Government’s satisfaction regarding the prevalent practice of non-levy of duty on these goods during the mentioned period is emphasized. The analysis delves into the factors contributing to the government’s decision, aligning it with the historical practices and prevailing circumstances.

4. Section 28A Powers: The article explores the legal foundation for this notification, utilizing the powers conferred by Section 28A of the Customs Act, 1962. It breaks down the government’s directive, emphasizing the waiver of customs duty during the specified period and the conditions attached to it.

Conclusion: In conclusion, the directive under Section 28A of the Customs Act, 1962, provides a comprehensive exemption from customs duty on specified wearables imported between 1st February 2022 and 27th April 2023. The analysis clarifies the amendments, conditions, and the government’s rationale behind this decision. Importers and stakeholders can now navigate the customs landscape with a clear understanding of the applicable exemptions during the mentioned period.

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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)

Notification No. 7/2024 – Customs (N.T.) | Dated : 24th January, 2024

G.S.R. 65(E).—WHEREAS wearable goods of the description as specified in column (3) of Notification 11/2022-Customs dated 1st February 2022 of the Government of India, Ministry of Finance, Department of Revenue (hereinafter referred to as the said notification), falling within the Chapter or heading or sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entry in column (2) of the table of the said Notification, when imported into India, were exempted from so much of the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the standard rate as specified in the corresponding entry in column (4) of the said Table of the said notification;

AND WHEREAS, the Notification 11/2022-Customs dated 1st February 2022 was amended by the Notification No. 33/2023-Customs, dated the 27th April, 2023, by inserting a proviso therein, as “Provided that the rate of duty specified in Column (4) against the respective description of goods mentioned in Column (3) of the Table above shall apply even when such goods are presented together in a manner so as to attract the provision of rule 2(a) of the General Rules of Interpretation of the First Schedule of the Customs Tariff Act, 1975, subject to the respective conditions specified in column (5)”;

AND WHEREAS, the Central Government is satisfied that according to the practice that was generally prevalent regarding levy of duty (including non-levy thereof) on the said goods when imported in a manner so as to attract the provision of rule 2(a) of the General Rules of Interpretation of the First Schedule of the Customs Tariff Act, 1975 (51 of 1975), were being imported without the duty being levied or collected during the period commencing on and from 1st February, 2022 and ending to 27th April, 2023 under the said Notification 11/2022-Customs dated 1st February 2022.

NOW, THEREFORE, in exercise of the powers conferred by section 28A of the Customs Act, 1962 (51 of 1962), the Central Government hereby directs that whole of the duty of customs payable on such goods or, as the case may be, the duty in excess of that payable on such goods, during the period from the 1st February, 2022 to 27th April 2023, when imported in a manner so as to attract the provision of rule 2(a) of the General Rules of Interpretation of the First Schedule of the Customs Tariff Act, 1975, but for the said practice, shall not be required to be paid in respect of import of such wearable goods of the description as specified in column (3) of Notification 11/2022-Customs dated 1st February 2022.

[F. No. 450/139/2023-Cus IV]

SANJEET KUMAR, Under Secy.

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