QUESTION

What is the effective rate of duty on HSN code 08013290 if import from Benin?

ANSWER 

Facts of the case: Effective rate of duty on HSN code 08013290 if import from Benin
 

Law Applicable: Custom Tariff
First Schedule for Import, Chapter 8:

 
Exemption Notification No. 96/2008-Cus
Regarding Duty free tariff preference for Least Developed Countries- G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts,-

 (i) goods falling under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), other than those specified in the Appendix I and Appendix II appended hereto, from whole of the duty of customs as specified in the first schedule to the Customs Tariff Act, 1975 and from whole of Agriculture Infrastructure and Development Cess, leviable under clause 115 of the Finance Bill, 2021 (15 of 2021) of the applied rate of duty;

(ii) all goods of the description as specified in column (3) of the Table in Appendix I and falling under the Chapter, Heading No. or Sub-heading No. of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) specified in the corresponding entry in column (2) of the said Table, from so much of that portion of the applied rate of duty of customs leviable as is specified in the corresponding entry in column (4) of the said Table;

 when imported into India from a country listed in the Schedule to this notification: 

 SCHEDULE:

 Appendix II

Interpretation: Normal rate of duty as per Customs tariff First Schedule for import of goods classified under HSN 0801 32 90 is 70%.

 Exemption Notification No 96/2008- Cus is issued which exempts goods falling under the First Schedule to the Customs Tariff Act, 1975, other than those specified in the Appendix I and Appendix II appended hereto, from whole of the duty of customs as specified in the first schedule to the Customs Tariff Act, 1975and from whole of Agriculture Infrastructure and Development Cess, leviable under clause 115 of the Finance Bill, 2021 (15 of 2021) of the applied rate of duty.

 The said Notification is divided into 3 parts:

 Appendix I: Specifies certain goods that are exempt from so much of that portion of the applied rate of duty of customs leviable as is specified in the corresponding entry in column (4) {specifies rate of extent of tariff concession}.

Appendix II: Specifies certain goods on which no exemption is available.

Schedule: Specifies list of countries on which this exemption Notification is available.

 Therefore in order to avail exemption, firstly you need to check whether the name of the country from which Import is being made is specified in the Schedule.

If the country of import is specified in Schedule then you need to check whether your product falls in either of the Appendix I or II.

If the product falls in Appendix I then, exemption is available to the extent of concession rate provided in the Appendix, If product falls in appendix II, then no exemption will be available, and if product neither falls in appendix I nor in appendix II then it will be exempt from whole of the Custom Duty.

 Conclusion: In your case Country of Import i.e. Benin is specified at s.no. 11 of the schedule.

 HSN code 0801 32 falls in Appendix II at s.no. 55, and 0801 32 covers 0801 32 90, therefore the exemption is not applicable on the same and effective rate of duty will be 70%.(Reply dt. 14/04/2021)