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F.No.341/41/2008-TRU
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.
S.
No.
|
Description
of item on which export duty has been imposed
|
Corresponding
Heading/ sub-Heading/ Tariff item of First Schedule
|
1
|
Pig
iron and spiegeleisen in pigs, blocks or other primary forms
|
7201
|
2
|
Ferrous
products obtained by direct reduction of iron ore and other spongy
ferrous products, in lumps, pellets or similar forms; iron having
minimum purity by weight of 99.94%, in lumps, pellets or similar forms
|
7203
|
3
|
Ferrous
waste and scrap; remelting scrap ingots of iron or steel
|
7204
|
4
|
Granules
and powders, of pig iron, spiegeleisen, iron or steel
|
7205
|
5
|
Iron
and non-alloy steel in ingots or other primary forms
|
7206
|
6
|
Semi-finished
products of iron or non-alloy steel
|
7207
|
7
|
Flat
rolled products of iron or non-alloy steel, hot rolled, not clad, plated
or coated
|
7208,
7209, 7211
|
8
|
Flat
rolled products of iron or non-alloy steel, cold rolled (cold-reduced),
not clad, plated or coated
|
9
|
Flat
rolled products of iron or non-alloy steel, plated or coated with zinc
|
7210
30 10, 7210 30 90, 7210 41 00, 7210 49 00, 7212 20 10, 7212 20 90, 7212
30 10, 7212 30 90
|
10
|
Bars
and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy
steel
|
7213
|
11
|
Other
bars and rods of iron
or non-alloy steel, not
further worked than forged, hot-rolled, hot-drawn or hot-extruded, but
including those twisted after rolling
|
7214
|
12
|
Other
bars and rods of iron or non-alloy steel
|
7215
|
13
|
Angles, shapes and sections of iron or
non-alloy steel
|
7216
|
14
|
Wire of iron or non-alloy steel
|
7217
|
15
|
Tubes and pipes, of iron or steel
|
7303,
7304, 7305, 7306
|
16
|
Basmati rice
|
1006
30 20
|
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.
(Vivek
Johri)
Joint
Secretary (TRU)
Tel:
011-2309 2687
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