No. CLE-HO/POL/CIRCULAR/16-17
June 9, 2016
Members of the Council.

Sub : Import of Fur Skins under 4301 and 4302 – Import Duty Exemption – reg.

Dear Member

Members may please note the following with regard to applicable import duty exemptions on import of fur skins under Tariff Numbers 4301 and 4302.
As per S.No.257 of Customs Notification No.12/2012 dated 17/3.2012 raw tanned or dressed fur skins falling under Tariff No.4301 or 4302 are exempted from Additional Duty of Customs (CVD).

Also, as per S.No.258 of the aforesaid Customs Notification No.12/2012 dated 17/3.2012, all goods under 4301 and 4302 (raw, tanned or dressed fur skins) other than those falling under Tariff No.43013000 are exempted from Basic Customs Duty. Besides, Raw Furskins under 43013000 are also exempted from Basic Customs duty as per the Customs Tariff Schedule.

Member-exporters had reported that as per existing Customs software, they are able to avail only one duty exemption i.e. Basic Customs Duty or CVD while filing Bill of Entry for import of raw fur skins, as the Customs Software allows only one exemption i.e. CVD exemption under Serial No. 257 or BCD exemption under Serial No. 258 and not both.

Hence, Shri M. Rafeeque Ahmed, Chairman, CLE sent a representation to the Single Window Commissionerate of Customs requesting to consider updating the Customs Software to allow simultaneous duty exemptions as envisaged in Serial Nos. 257 and 258 of Customs Notification No.12/2012 dated 17.3.2012 for import consignments of fur skins under Chapter 43, so that such consignments can be imported without import duty

In response, we have now received the following update from the Single Window Commissionerate, Ministry of Finance, Govt. of India.

RESPONSE FROM SINGLE WINDOW DIRECTORATE

It is to bring to your kind notice that required changes have already been made to the system and communicated vide Board Instruction No. F. No.450/147/2015-Cus.IV dated 31.3.2016 (Annex XI) (copy enclosed) which is reproduced below for easy reference.

A new flag has been introduced at the item level in view of clarification issued vide Board’s Circular No. 41/2013 dated 21.10.2013 (copy enclosed) under which the importer has the option to avail benefits of concessional Basic Customs Duty and Additional Duties of Customs (CVD). Earlier, a CVD notified filed in the item table was always assumed to be Central Excise Notification. Thus, in order to avail exemption of Additional Customs Duty using Customs Notification, the importer should declare the Flag C to indicate that the Notification Number declared in position 27 refers to Customs Notification and not a Central Excise one.

Accordingly 012/2012-Cus Serial No. 258 may be entered in BCD Column and with CVD flag as “C” in 012/2012-Cus Serial No. 257 may be claimed in CVD column

From the above, it may be kindly noted that both Basic Customs Duty (BCD) and Countervailing Duty (CVD) exemptions for import of furskins under 4301 and 4302 can now be availed.

Members may kindly note the above.
Thanks and regards
R. Ramesh Kumar
Executive Director
COUNCIL FOR LEATHER EXPORTS

CBEC Instruction No. F. No.450/147/2015-Cus.IV dated 31.3.2016 Customs Circular No. 41/2013 dated 21.10.2013 Customs Instructions No. 450/147/2015-Cus.IV dated 31.3.2016