Duty Free Import Scheme of CLE – Issue of New Customs Circular

No. CLE-HO/POL/DFIS/17-18

July 4, 2017

Members of the Council

 Sub : Duty Free Import Scheme of CLE – Issue of New Customs Circular

Dear Member

As members are aware, the Duty Free Import Scheme is implemented as per provisions of  Serial Nos. 259 (for import of lining and interlining materials for leather garments @ 2% of FOB value of export realization in previous year), Serial No. 282 ( for import of notified inputs for for leather garments – notified inputs allowed @ 3% of FOB value of exports in previous year) and Serial No. 283 (for import of notified inputs for footwear and other leather products – notified inputs allowed duty free @ 5% of FOB value of exports in previous year) of Customs Notification No. 12/2012 dated 17.3.2012

Now, under GST, as new Customs Notification No.50/2017 dated 30.6.2017 (copy enclosed) for Duty Free Import Scheme has been issued. As per this Customs Notification, the following will be the new Serial Nos. for DFIS inputs.

NEW DFIS SCHEME

1) Serial Nos. 288 read with condition no. 28  (for import of lining and interlining materials for leather garments @ 2% of FOB value of exports in previous year),

2) Serial No. 311  read with condition no. 28  (for leather garments – notified inputs allowed @ 3% of FOB value of exports in previous year) .

3) Serial No. 312  read with condition no. 32 (for footwear and other leather products – notified inputs allowed duty free @ 5% of FOB value of exports in previous year) and read with Corrigendum dated July 3, 2017 .

Accordingly, the software of CLE for issue of Export Performance and Import Certificates is being updated. It is learnt that applicable Integrated Goods and Services Tax (IGST) needs to be paid for imports under DFIS while Basic Customs Duty will continue to be exempted.

Also, as per serial nos. of the aforesaid Customs Notification No.50/2017 dated 30.6.2017 finished leather, wet blue, crust leather, patent leather, fur skins etc., will be continued to be exempted from Basic Customs Duty.

With kind regards

Yours sincerely

Ramesh Kumar

Executive Director

COUNCIL FOR LEATHER EXPORTS

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