Special Additional Duty of Customs (SAD) – Goods for sale are exempted and need no debit in Passbook
Circular No. 93/98 – Customs
dated 17/12/1998
F.No. 605/78/98- DBK
Government of India
Ministry of Finance
Department of Revenue, New Delhi
Doubts have been raised whether – Special additional Duty of Customs (SAD) of 4% is applicable to imports made by traders, and if so, how it can be made applicable to imports by traders under the Pass Book Scheme.
2. The issue has been examined in the Board and the issue may be decided as follows:
3. Importers are entitled to clear goods against debits in valid Passbooks vide Entry No. 13 Notification No. 34/98-Cus. dated 13.6.98. Merchant exporters are otherwise entitled to the benefit of exemption from SAD vide S. No. 12 of Notification No. 34/98-Cus. dated 13.6.98. This is a stand alone entry which exempts all goods which are for sale as such, and so long as the importers make a declaration to that effect in the Bill of Entry in the manner specified in the Notification (read with any other instructions on the subject) the goods would be eligible for the benefit of this entry. As such, merchant exporters holding valid Passbook may debit other duties in the Passbook as per S. No. 13ibid but would enjoy complete exemption from SAD which need not be debited in the Passbook as per Sl. No. 12 ibid.
