Advisory on Introduction of New Facility in ICES to Levy and Exempt Education CESS and Higher Education CESS on CVD

            It is informed that Education and Higher Education cess on CVD was exempted for all goods vide Notification No. 13/2012-Customs & 14/2012 - Customs respectively. Hence no additional field was provided in the BE format to claim exemption from Education and Higher Education cess on CVD.

            In this budget, Notification 18/2014- Customs and 19/2014- Customs were issued withdrawing the exemptions given vide 13/2012-Customs and 14/2012-Customs for certain electronic goods.

            Hence to incorporate such changes, new Column has been introduced in B.E. Format / Assessment to enable importers to claim exemption from this levy based on 13/2012-Customs read with 18/2014 (as amended).

            In the revised procedure, Education & higher Edu. Cess on CVD will be levied on all goods by default. Importers who are eligible may claim exemption in the new column by quoting 013/2012 Sl.No. 1.  It is to be noted that by quoting 013/2012 Sl. No. 1 both Education Cess and Higher Education Cess will be exempted. So there is no necessity of claiming 14/2012 for exemption of Higher Education cess separately.

            The calculations may be checked manually and any discrepancies may be informed to this directorate at nsm.ices@icegate.gov.in immediately. Similar to many other notifications, the ICES system has limitations in completely validating the eligibility of this exemption. The Appraising/Out of charge officers must ensure the eligibility of the goods for this exemption before final clearance.

            This change has resulted in modification of BE message format. Updated BE message format is placed at ICEGATE website for information. The importers may need to revise private RES packages being used by them to file Bills of entry remotely. Hence due publicity may be provided to this change.