Excise/Custom

Assessment of Bulk Liquid Cargo. Shore tank receipt quantity should be taken basis for levy of custom duty. Custom Circular no. 34/2016

Circular  No.34/2016-Customs

F.No.  465/01/2014-Cus.V
Government of India

Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
*****

New Delhi, Dated 26th July, 2016

To,
All Principal Chief Commissioners of Customs/Customs & Central Excise ,
All Chief Commissioners of Customs ,
All Chief Commissioners of Customs & Central Excise,
All Directorate-Generals , Chief Departmental Representative ,
All Principal Commissioners of Customs ,
All Principal Commissioners of Customs & Central Excise,
All Commissioners of Customs,
All Commissioners of Customs & Central Excise.

Subject: Assessment of Bulk Liquid Cargo- regarding.

Kindly refer to the judgment of Hon’ble Supreme Court in the case of Mangalore Refinery and Petrochemicals Limited vs . Commissioner of Customs , Mangalore dated 02.09.2015 [2015 (323) E.L.T. 423 (S.C.)].

2. In the light of the above judgement , the Board has reviewed the Circular No. 96/2002-Customs dated 27.12.2002 & Circular No. 06/2006 dated 12.01.2006 and it has been decided to rescind both these Circulars .

3. In case of all bulk liquid cargo imports, whether for home consumption or for warehousing , the shore tank receipt quantity e., dip measurement in tanks on shore into which such cargo is pumped from the tanker , should be taken as the basis for levy of Customs Duty irrespective of whether Customs Duty is leviable at a specific rate or ad-valorem basis [including cases where tariff value is fixed under Section 14(2) of the Customs Act, 1962].

4. Further, where bulk liquid cargo is cleared directly on payment of duty without being pumped in a shore tank, assessment may continue to be done as per ship’s ullage survey report at the port of discharge .

5. Difficulties, if any, faced in the implementation of above instructions may be brought to the notice of the Board at an early date.

6. Hindi version follows .

(Kshitendra Verma)
Under Secretary to the Govt. of India

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