Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
New Delhi, dated the 3rd June, 2008
Subject: Export duty on iron and steel items - doubts regarding coverage of items in the Export Schedule - reg:
As you are aware, export duty has been imposed on specified iron and steel items w.e.f 10.5.2008. The effective rates of export duty on various items have been prescribed through notification no. 66/2008-Customs dated 10.5.2008.
2. The relevant entries in the Second Schedule as well as the aforesaid notification specify only the product description to which the export duty is meant to apply. Representations have been received in the Board that there is lack of clarity about the scope/ coverage of these entries and customs formations have sought to charge export duty on items such as forgings of iron and steel, structures and articles. Similar doubts have been raised by field formations as well and a clarification has been sought.
3. The matter has been examined. The Second Schedule to the Customs Tariff Act, 1975 (i.e. the Export Schedule) is not aligned with the Harmonised System of Nomenclature (HSN) as a result of which it has not been possible to indicate the corresponding heading no./ sub-heading no. of the HSN in notification No.66/2008- Customs. However, the description of the relevant entries have been borrowed from the First Schedule or the Import Schedule. In order to remove any ambiguity about the coverage of these entries, their description is reproduced in the Table below along with the corresponding Heading No. of the First Schedule.
Since there is already a practice of asking the exporter to declare the six-digit classification/ RITC on the Shipping Bill, the information provided in the Table can easily be used to determine whether or not export duty is applicable in a particular case. Further, the classification of various items in the First Schedule to the Customs Tariff Act is not a matter of any doubt, as the relevant principles are clearly enunciated in the Rules for interpretation of the First Schedule. The same guiding principles may be followed by assessing officers in deciding whether a particular iron/steel product will attract export duty or not.
4. It is requested that the above instructions may be communicated to all assessing officers in your charge, so that no difficulty is faced in assessment of export consignments. It is also requested that pending issues, if any, may be resolved expeditiously so that no hold-up of export shipments occurs. Difficulties, if any, in implementation of the above instructions may be brought to the notice of the undersigned.
Joint Secretary (TRU)
Tel: 011-2309 2687