Rebates in Custom Duty

1. Import from India and China (Section 3 and 4 of schedule 1 of finance act 2078)



conditions-

• goods manufactured in India and imported from India using Letter of Credit
• Goods manufactured in China and imported through Tibet through land transport
• only available on ad valorem duty and not on specific duty
• in case the goods are imported from India under Duty Refund Procedure (DRP), Excise duty paid in India shall be reduced from custom tariff as computed above. Such excise duty is only deducted from the custom tariff on invoice value and not other costs like transportation, insurance.

2. Import from SAARC Countries

if goods are manufactured in SAARC countries and are imported with invoice from the country of origin, the following rebates are available on the rates as was applicable on Poush 17, 2062.



Conditions -

1. Should be Imported under Letter of Credit.
2. There is SAFTA origin certificate issued under SAFTA Agreement.

Points to be noted -

• If rate as per prevailing act is lower, then such rate shall be applicable. (eg - if rate as on poush 16, 2062 was 25%, then the rate as per this section would be 9.5%. suppose the rate in the schedule 1 of existing finance act is 5%, then 5% rate shall be applicable).
• if custom duty is exempted or other rebates are available as a result of which such rates are lower than as per this section.
• The six-digit subheading under the Harmonized System does not match.
• The goods does not fall under Section 19 and section 20 of schedule 1 of finance act 2078

3. Rebate in case of damaged or goods in low quantity

Conditions -

1. Lesser quantity is dispatched than that should have been dispatched.
2. Goods are commercially worthless due to breakage as a result of calamity or accident in transit.
3. The weight or quantity is lost due to breakage as a result of calamity or accident in transit.
4. Quantity is lost due to theft

Procedure -

make an application for rebate along with the following documents -

1. Clear reason of importing the goods due to any of the above circumstances.
2. insurance surveyor verifying the same fact.
3. Documents from authorized body certifying the fact.
4. Event spot enquiry document or any other relevant and subjective documents.