CBIC announces deferred duty payment scheme to ensure easy compliance : 26-08-2020

Central and state level public sector undertakings (PSUs) can now pay customs duty 15 days after clearance of imported goods through customs, a move that is set to ensure speedier clearance and ease compliance for companies.

The Central Board of Indirect Taxes and Customs (CBIC) announced the deferred duty payment scheme on Tuesday, adding that it had centralized intimation of entitlement to the scheme to all customs ports, thereby removing another hurdle for compliance.

“This measure is expected to result in speedier clearance of the goods imported by the PSUs, thereby helping them in their activities,” the Board said in a statement.

Central and state PSUs importers will have to register with the CBIC on the basis of a recommendation letter from a joint secretary level officer of their administrative ministry or department.

The deferred duty payment scheme is presently available to 244 Authorized Economic Operators (AEOs) who can get their imported goods immediately and pay customs duties subsequently.

The Board has done away with the requirement of approved AEOs having to intimate every customs port of their entitlement to avail the facility of deferred payment of customs duties. “This would now be handled centrally… This will also apply to the approved PSUs,” it added.

The scheme was launched in 2016 as part of ‘Turant Customs’ reforms which envisages a faceless, contactless and paperless customs environment for enhancing ease of doing business, increasing efficiency and improvement in turnaround time.

Source : PTI