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Trade Regulatory Update

The Union Finance Minister presented the Union Budget 2021 and proposed the Finance Bill, 2021 in Lok Sabha on February 1, 2021. Amendments and changes in Customs, Central Excise, GST laws and Rates have been proposed through the Finance Bill, 2021. An overview of the same is provided below

Customs Act, 1962

• Section 25 of the Customs Act is being amended to prescribe that all conditional exemptions, unless otherwise specified or varied or rescinded, under Customs Act shall come to an end on 31st March falling immediately two years after the date of such grant or variation.
• A new section 28BB is being introduced prescribing a two-year time-limit, further extendable by one year by the Commissioner, for completion of any proceedings under this act.
• Sub section (3) of section 46 is being amended to:
i. mandate filing of bill of entry before the end of the day preceding the day of arrival of goods.
ii. a new proviso is being introduced to enable the Board to notify the time period for presenting bill of entry in certain cases as it may deem fit.
• Section 110 of the Customs Act is being amended to revise the procedure for pre-trial disposal of seized gold.
• Sub-section (ja) is being added to section 113 to provide for the confiscation of any goods entered for exportation under claim of remission or refund of any duty or tax or levy, to make a wrongful claim in contravention of the provisions of the Act, 1962.
• A new section 114AC is being inserted in the Act to prescribe penalty in cases where any person has obtained any invoice by fraud, collusion, wilful misstatement or suppression of facts to utilize Input Tax Credit on that basis for discharging any duty or tax on goods that are entered for exportation under claim of refund of any duty or tax.
• Explanation to section 139 of Customs Act is being amended to give evidentiary value to the documents within the meaning of that section to
• Section 149 is being amended to:
i. introduce a 2nd proviso for amendments to be done through the customs automated system.
ii. introduce a 3rd proviso so that certain amendments, may be done by the importer/exporter on the common portal.
• Section 153 is being amended to insert a new clause (ca) under sub section (1) to enable service of order, summons, notice, etc. by making it available on the common portal.
• Chapter XVII is being amended to insert a new section, 154C for notification of a common portal for facilitating registration, filing of bills of entry, shipping bills, any other document or form, and payment of duty etc.