Imported items may be released without upfront payment of duty – Budget expectations
India may release imported items without any upfront duty payment as part of a revamp of the Customs framework to speed up movement of goods across borders, which can currently take more than a week.
The upcoming budget, the first after the rollout of the goods and services tax (GST), is likely to include several measures aimed at relaxing the Customs regime for businesses. Other measures could include allowing traders to know their tax liability in advance even for existing transactions.
Goods are currently released after assessment and payment of duty. If this system is reversed, goods will be released first with assessment of duty liability taking place subsequently.
In India, border compliance takes 267 hours (more than 11 days) for imports against 8.7 hours for OECD countries and instant clearance in as many as 21 countries.
That translates into a cost of $536 per consignment in India compared with $111.6 in OECD countries. “Key areas of concerns for a trader are assessment, clearance of goods, refunds and disputes, addressable in a time-bound transparent manner through IT-based tools .
Source: economic times