Safe guard duty

The Central Government may impose safeguard duty on specified imported goods, if it is satisfied
that the goods are being imported in large quantities and they are causing serious injury to domestic
industry.

Safeguard duty is product specific i.e. the safeguard duty is applicable only for certain articles in
respect of which it is imposed. Safeguard duty is in addition to any other duty in respect of such
goods levied under this Act or any other law for the time being in force

ABC Industries Ltd. imports an equipment by air. CIF price of the equipment is 6,000 US$, freight paid is
1,200 US$ and insurance cost is 1,800 US$.Central Board of Excise and Customs notifies the exchange
rate as ` 60 per US$ while rate of exchange notified by RBI is ` 62 per US$. Basic customs duty is 10%,
IGST as per Customs Tariff Act is leviable @ 12% and SWS is applicable. Ignore GST Compensation
Cess.

You are required to compute the amount of total duty and integrated tax payable by ABC Industries Ltd.
under Customs law.

EXPORTS

The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of
any kind of goods or services..

Customs duty under Exports:Under GST regime, the exporter has either of the two options:
Export under bond without payment of tax or Export along with tax payment and claim refund
later

Option 1: Export without payment of IGST

Option 2: Export by payment of IGST

ITC and Exports

MM International Limited has imported a machinery by Air. Bill of entry is presented on 20.1.2019,
however, entry inwards is granted on 25.1.2019. Relevant information of the transaction are provided
hereunder:

CIF value of machine 5000 USD, Air Freight paid 750 USD, Insurance charges paid 100 USD.

Rate of exchange on 20.01.2019: - As per RBI 1USD = Rs.65. As per CBEC 1 USD = Rs.66

Rate of exchange on 25.01.2019: - As per RBI 1USD = Rs.66. As per CBEC 1 USD = Rs.67

BCD 10%, IGST Rate 18%, SWS as applicable, IGST compensation cess 16%. Calculate assessable
value and customs duty payable

Anti dumping duty

Anti-dumping duty is a tariff imposed on imports manufactured in overseas countries and that are priced
below the fair market value of similar goods in the domestic market. The government imposes anti-
dumping duty on foreign imports when it believes that the goods are being dumped in the domestic market.
Anti-dumping duty is imposed to protect local businesses and markets from unfair competition by foreign
imports.

Refund of export duty in certain cases

Where on the exportation of any goods any duty has been paid, such duty shall be refunded to the
person by whom or on whose behalf it was paid, if -
(a) the goods are returned to such person otherwise than by way of re-sale;
(b) the goods are re-imported within one year from the date of exportation; and
(c) an application for refund of such duty is made before the expiry of six months from the date on
which the proper officer makes an order for the clearance of the goods.