Remission, Abatement, and Exemption of Goods

Remission, Abatement, and Exemption of Goods, Find complete details for Remissions, Abatements, Denaturing, & Exemption of Goods. Hi Friends in this article we are providing everything you want to know about Remission, Abatement, & Exemption of Goods like – Details for Remission of duty on goods lost, destroyed or abandoned [Sec 23], Details for Abatement of duty on damaged or deteriorated goods [Sec 22], Details for Denaturing or mutilation of goods [Sec 24], Exemptions from custom duty [Sec 25]. Now you can scroll down below and check more details for “Remission, Abatement, and Exemption of Goods”

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Remission, Abatement, and Exemption of Goods

After Reading Procedure, mechanism and assessing of duty, now the turn has came for the most awaited portion of the chapter where it says about the remissions, abatements etc. This whole provisions tell about what is remission, how it is granted, where to apply etc. Various abatements are also discussed and the exemptions which are available for some specific goods and they are exempt from payment of duty are also provided.

Must Read – Imposition and Circumstances for Levy of Custom Duty

Briefing the Article:

Remission of duty on goods lost, destroyed or abandoned [Sec 23]

  1. Remission of Duty
    • Any imported goods which have been lost or destroyed at any time before clearance for home consumption, AC/DC may remit the duty.
    • It should be total loss of goods, loss should be forever and beyond recovery and should be generally due to natural causes like fire, flood etc.
    • Such loss have to be proved to AC/DC.
  2. Right to Relinquish the title of goods
    • Owner of any imported goods may at any time before an order for clearance of goods relinquish his title to goods and there upon he shall not be liable to pay duty.
    • Relinquish means to give over the possession or control of, to leave off.
    • Shall not be allowed to relinquish the title to such goods regarding which an offence appears to have been committed.
  3. Distinction between Sec 13 & Sec 23
Basis Section 13 Section 23
Meaning Pilfer means to steal, especially in small quantities Words lost or destroyed refers to Total loss of goods
Duty Shall lot be liable to pay duty Duty is already paid, it will be remitted
Restoration Goods are restored after pilferage, liable to pay duty Restoration is not possible
Warehousing Not apply to this section Apply to this section
Onus to prove Does not lie on importer as it comes during examination of officer Has to prove
Time of occurrence After unloading but before order for clearance Before clearance for home consumption

Abatement of duty on damaged or deteriorated goods [Sec 22]

  • Cases where the abatement is available
Goods damaged/deteriorated
1.before or during unloading
2.accident after unloading but before examination Provided accident should not be due to wilful act, negligence of importer, etc
3.accident before actual clearance
  • Amount of duty chargeable after abatement

= Duty on goods before damage *  Value of damaged goods
Value of goods before damage

  • Valuation of damaged goods
    • Value ascertained by proper officer or
    • Sold by proper officer with the consent of owner and gross sale proceeds shall be the value of such goods.

Must Read – Some Important Definitions Under Customs Act, 1962

Denaturing or mutilation of goods [Sec 24]

  • Importer can request Central Govt. for permitting to denature/mutilate the goods which are used for more then 1 purpose
  • By denaturing goods are made unfit for other purposes.

Example – Ethyl alcohol which is not denatured attracts higher duty where as denatured ethyl alcohol attracts lower rate of duty.

Exemptions from custom duty [Sec 25]

  1. General exemption – May by Notification in Official Gazette exempt generally either absoulety or subject to such conditions as may be specified in the notification.

Special exemption – May by special order in each case exempt from payment of duty any goods on which duty is leviable only under circumstances of an exceptional nature to be stated in such order.