The Central Board of Indirect Taxes and Customs (CBIC) has issued the Deferred Payment of Import Duty (Amendment) Rules, 2020. The Amendment was issued by a notification dated 19th August 2020 and come into effect from that same date.
The Amendment modifies the Deferred Payment of Import Duty Rules, 2016 in so far as it omits Rule 4.
The erstwhile Rule 4 dealt with rendering information about intent to avail benefit of deferred payment facility. Therefore, it stipulated that an eligible importer who intended to avail the benefit of deferred payment facility in respect of an order permitting clearance of imported goods for home consumption, under the relevant provisions of the Customs Act, 1962 was required to inform the Principal Commissioner of Customs or the Commissioner of Customs, having jurisdiction over the port of clearance, his intention to avail the said benefit. This is because such order of clearance was made subject to the payment of import duty and other charges under the Customs Act, 1962.
In other words, if an importer sought to obtain an order of clearance from the Customs Authorities for home consumption of imported goods and he wished to make deferred payment of the import duty, he was required to convey this to the Authorities.
The Principal Commissioner of Customs or the Commissioner of Customs, upon being satisfied that the importer was eligible to pay duty under the Deferred Payment of Import Rules, 2016, would allow such payment on specified dates.
However, by virtue of this Amendment, this Rule has been done away with.
