Purchasers Statutory Declaration Of Dutiable Value: Fill & Download for Free

Customs Duty InformationWhat Is A Customs Duty?Customs Duty is a tariff or tax imposed on goods when transported across international borders. The purpose of Customs Duty is to protect each country's economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.Dutiable refers to articles on which Customs Duty may have to be paid. Each article has a specific duty rate, which is determined by a number of factors, including where you acquired the article, where it was made, and what it is made of. Also, anything you bring back that you did not have when you left the United States must be "declared." For example, you would declare alterations made in a foreign country to a suit you already owned, and any gifts you acquired outside the United States. American Goods Returned (AGR) do not have to be declared, but you must be prepared to prove to U.S. Customs and Border Protection the articles are AGR or pay Customs duty.The Customs Duty Rate is a percentage. This percentage is determined by the total purchased value of the article(s) paid at a foreign country and not based on factors such as quality, size, or weight. The Harmonized Tariff System (HTS) provides duty rates for virtually every existing item. CBP uses the Harmonized Tariff Schedule of the United States Annotated (HTSUS), which is a reference manual that the provides the applicable tariff rates and statistical categories for all merchandise imported into the U.S.Duty-Free Shop articles sold in a Customs duty-free shop are free only for the country in which that shop is located. Therefore, if your acquired articles exceed your personal exemption/allowance, the articles you purchased in Customs duty-free shop, whether in the United States or abroad, will be subject to Customs duty upon entering your destination country. Articles purchased in a American Customs duty-free shop are also subject to U.S. Customs duty if you bring them into the United States. For example, if you buy alcoholic beverages in a Customs duty-free shop in New York before entering Canada and then bring them back into the United States, they will be subject to Customs duty and Internal Revenue Service tax (IRT).Determining Customs DutyThe flat duty rate will apply to articles that are dutiable but that cannot be included in your personal exemption, even if you have not exceeded the exemption. For example, alcoholic beverages. If you return from Europe with $200 worth of purchases, including two liters of liquor, one liter will be duty-free under your returning resident personal allowance/exemption. The other will be dutiable at 3 percent, plus any Internal Revenue Tax (IRT) that is due.A joint declaration is a Customs declaration that can be made by family members who live in the same household and return to the United States together. These travelers can combine their purchases to take advantage of a combined flat duty rate, no matter which family member owns a given item. The combined value of merchandise subject to a flat duty rate for a family of four traveling together would be $4,000. Purchase totals must be rounded to the nearest dollar amount.Tobacco ProductsReturning resident travelers may import tobacco products only in quantities not exceeding the amounts specified in the personal exemptions for which the traveler qualifies (not more than 200 cigarettes and 100 cigars if arriving from other than a beneficiary country and insular possession). Any quantities of tobacco products not permitted by a personal exemption are subject to detention, seizure, penalties, abandonment, and destruction. Tobacco products are typically purchased in duty-free stores, on sea carriers operating internationally or in foreign stores. These products are usually marked "Tax Exempt. For Use Outside the United States," or "U.S. Tax Exempt For Use Outside the United States."For example, a returning resident is eligible for the $800 duty-free personal exemption every 31 days, having remained for no less than 48 hours beyond the territorial limits of the United States except U.S. Virgin Islands, in a contiguous country which maintains free zone or free port, has remained beyond the territorial limits of the United States not to exceed 24 hours. This exemption includes not more than 200 cigarettes and 100 cigars:If the resident declares 400 previously exported cigarettes and proves American Goods Returning (AGR), the resident would be permitted or allowed to bring back his AGR exempt from Customs duty.If the resident declares 400 cigarettes, of which 200 are proven AGR or previously exported and 200 not AGR or not previously exported, the resident would be permitted to bring back his 200 previously exported cigarettes tax and Internal Revenue Tax (IRT) free under his exemption.The tobacco exemption is available to each adult 21 years of age or over.Cuba:In December 2014, President Obama announced his intention to re-establish diplomatic relations with Cuba. The President did not lift the embargo against Cuba. Absent a democratic or transitional government in Cuba, lifting the embargo requires a legislative statutory change. Since the announcement, however, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) has amended the Cuba Assets Control Regulations (CACR), effective January 16, 2015, to authorize travel within certain categories to and from Cuba and to allow certain imports from and exports to Cuba.All travelers, including those from Cuba, must comply with all applicable laws and regulations. This includes the Harmonized Tariff Schedule of the United States (“HTSUS”) (2016) limitations on personal exemptions and rules of duty extended to non-residents and returning U.S. residents.Persons subject to U.S. jurisdiction are authorized to engage in all transactions, including payments necessary to import certain goods and services produced by independent Cuban entrepreneurs as determined by the State Department and set forth in the State Department’s Section 515.582 list located at FACT SHEET: U.S. Department of State Section 515.582 List. On October 17, 2016, the Office of Foreign Asset Control relaxed restrictions so authorized travelers, arriving direct from Cuba, are now able to bring Cuban merchandise for personal use back to the United States and qualify for the U.S. Resident exemption (HTSUS 9804.00.65, which allows up to $800 total in goods, and adults 21 and older may include 1 liter of alcohol, 200 cigarettes, and 100 cigars). This exemption also applies to travelers, arriving from any country in the world, with declared Cuban merchandise.Declared amounts in excess of the exemption are subject to a flat 4% rate of duty, and any applicable IRS taxes, pursuant to HTSUS 9816.00.20 and 19 CFR 148.101, which impose a duty rate of 4% of the fair retail value on goods from a Column 2 country.Regarding goods: The Department of State will, in accordance with the State Department’s Section 515.582, issue a list of prohibited goods. Placement on the list means that any listed good falls within certain Sections and Chapters of the HTSUS which do not qualify for this exception.Regarding entrepreneurs: The Cuban entity must be a private business, such as a self-employed entrepreneur or other private entity, not owned or controlled by the Government of Cuba. Travelers engaging in these transactions are required to obtain evidence that demonstrates the goods purchased were obtained from a Cuban entrepreneur, as described above, and should be prepared to furnish evidence of such to U.S. Government authorities upon request. Evidence may include a copy of the entrepreneur’s license and/or an invoice and/or purchase order demonstrating the goods were purchased from a specific Cuban entrepreneur. Whether a traveler presents adequate evidence that a good qualifies from importation and that it was bought from a licensed independent Cuban entrepreneur shall be determined on a case-by-case basis by the inspecting CBP officer.Imports under Section 515.582 (i.e., imports from licensed independent entrepreneurs not on the Department of State’s prohibited list) must comply with all current U.S. Customs and Border Protection (CBP) formal and informal entry requirements, as applicable. This means that, while there is no value cap on the amount of goods that may be imported under this provision, the applicable duties in the HTSUS must be considered.In particular, HTSUS 9804.00.65 allows for the duty-free importation of personal-use articles from a Column 2 country when the fair retail value of such goods is under $800. Also see 19 C.F.R. 148.33. HTSUS 9816.00.20 establishes a duty rate of 4% of the fair retail value for personal-use articles under $1,000 imported from a Column 2 country. Thus, any articles imported under this section for personal use with a value of under $800 can be imported duty free, and any articles imported for personal use with a value between $800 and $1800, will be subject to a flat 4% duty rate. Any articles valued over $1800, regardless of whether for personal use, will be subject to entry and should be classified, appraised, and assessed duty appropriately under the specific HTSUS Column 2 rates. Also see 19 C.F.R. 148.101 and 148.102. Any commercial importation, i.e., not for personal use, is subject to entry requirements and payment of applicable duties, fees, and taxes.While these revised regulations may facilitate certain travel and trade with Cuba, all other laws and regulations applicable to international travel and the importation/exportation of goods remain in full effect. This means that all United States agency requirements applicable to a particular importation must be met and fully complied with, such as the regulations of the Food and Drug Administration, the Consumer Product Safety Commission, and the Animal and Plant Health Inspection Service.Alcoholic BeveragesOne American liter (33.8 fl. oz.) of alcoholic beverages may be included in your returning resident personal exemption if:You are at least 21 years old.It is intended exclusively for your personal use and not for sale.It does not violate the laws of the state in which you arrive.Federal and state regulations allow you to bring back one liter of an alcoholic beverage for personal use duty-free. However, states may allow you to bring back more than one liter, but you will have to pay any applicable Customs duty and IRT.While federal regulations do not specify a limit on the amount of alcohol you may bring back beyond the personal exemption amount, unusual quantities may raise suspicions that you are importing the alcohol for other purposes, such as for resale. CBP officers enforce the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) laws, rules, and regulations and are authorized to make on-the-spot determinations that an importation is for commercial purposes. If such determination is made, it may require you to obtain a permit and file a formal entry to import the alcohol before the alcohol is released. If you intend to bring back a substantial quantity of alcohol for your personal use, you should contact the U.S. Port of Entry (POE) through which you will be re-entering and make prior arrangements for the importation.Also, state laws might limit the amount of alcohol you can bring in without a license. If you arrive in a state that has limitations on the amount of alcohol you may bring in without a license, that state's law will be enforced by CBP, even though it may be more restrictive than federal regulations. We recommend that you check with the state government about their limitations on quantities allowed for personal importation and additional state taxes that may apply. Ideally, this information should be obtained before traveling.In brief, for both alcohol and cigarettes, the quantities eligible for duty-free treatment may be included in your $800 or $1,600 returning resident personal exemption, just as any other purchase should be. But unlike other kinds of merchandise, amounts beyond those discussed here as being duty-free are taxed, even if you have not exceeded, or even met, your personal exemption. For example, your exemption is $800 and you bring back three liters of wine and nothing else, two of those liters will be dutiable and IR taxed. Federal law prohibits business-to-private consumer shipping of alcoholic beverages by mail within the United States.How to Pay Customs DutyIf you owe Customs duty, you must pay it before the conclusion of your CBP processing. You may pay it in any of the following ways:U.S. currency only.Personal check in the exact amount, drawn on a U.S. bank, made payable to U.S. Customs and Border Protection. You must present identification, such as a passport or U.S. driver's license. CBP does not accept checks bearing second-party endorsement.Government check, money order or traveler's check if the amount does not exceed the duty owed by more than $50.In some locations/POEs, you may pay duty with either MasterCard or VISA credit cards.Increased Duty RatesItems from Certain CountriesUnder what is known as its "301" authority, the United States may impose a much higher than normal duty rate on products from certain countries. Currently, the United States has imposed a 100 percent rate of duty on certain products of Austria, Belgium, Denmark, Finland, France, The Federal Republic of Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the Ukraine. If you should bring more of any of these products back with you than fall within your exemption or flat rate of duty, (see below) you will pay as much in duty as you paid for the product or products.While most of the products listed are not the type of goods that travelers would purchase in sufficient quantities to exceed their exemption, diamonds from the Ukraine are subject to the 100 percent duty and might easily exceed the exemption amount.For information on countries that may become subject to a higher than normal duty rate, check the Department of Commerce Web site.Countries With Free or Reduced Customs Duty RatesThe United States gives Customs duty preferences-that is, conditionally free or subject to reduced rates-to certain designated beneficiary developing countries under a trade program called the Generalized System of Preferences (GSP). Some products that would otherwise be dutiable are not when they are wholly the growth, product, or manufacture of a beneficiary GSP country. Visit the Office of United States Trade Representative website for additional GSP information.Similarly:Many products from Caribbean and Andean countries are exempt from duty under the Caribbean Basin Initiative (CBI), Caribbean Basin Trade Partnership Act, Andean Trade Preference Act and the Andean Trade Promotion and Drug Eradication Act.Many products from certain sub-Saharan African countries are exempt from duty under the African Growth and Opportunity Act.Most products from Israel, Jordan, Chile and Singapore may also enter the United States either free of duty or at a reduced rate under the U.S. free trade agreements with those countries.The North American Free Trade Agreement (NAFTA) went into effect in 1994. If you are returning from Canada or Mexico, your goods are eligible for free or reduced duty rates if they were grown, manufactured, or produced in Canada or Mexico, as defined by the Act.Additional information on these special trade programs can be found on the CBP Web site.Household Effects & Personal Effects - Customs Duty GuidanceHousehold effects conditionally included are duty-free. These include such items as furniture, carpets, paintings, tableware, stereos, linens, and similar household furnishings; tools of the trade, professional books, implements, and instruments.You may import household effects you acquired abroad duty-free if:You used them abroad for no less than one year.They are not intended for any other person or for sale.For Customs purposes, clothing, jewelry, photography equipment, portable radios, and vehicles are considered personal effects and cannot be brought in duty-free as household effects. However, duty is usually waived on personal effects more than one year of age. All vehicles are dutiable.Mailing and Shipping Goods - Customs Duty GuidanceUnaccompanied purchases are goods you bought on a trip that are being mailed or shipped to you in the United States. In other words, you are not carrying the goods with you when you return. If your unaccompanied purchases are from an insular possession (IP) or a Caribbean Basin Initiative (CBI) country and are being imported within 30 days and sent directly from those locations to the United States, you may enter them as follows:Up to $1,600 in goods will be duty-free under your personal exemption if the merchandise is from an IP.Up to $800 in goods will be duty-free if it is from a CBI or Andean country.Any additional amount, up to $1,000, in goods will be dutiable at a flat rate (3%).To take advantage of the Customs duty-free exemption for unaccompanied tourist purchases (mailing/shipping) from an IP or CBI country:Step 1. At place and time of purchase, ask your merchant to hold your item until you send him or her a copy of CBP Form 255 (Declaration of Unaccompanied Articles), which must be affixed to the package when it is shipped.Step 2. (a) On your declaration form (CBP Form 6059B), list everything you acquired on your trip that is accompanying you. You must also complete a separate Declaration of Unaccompanied Articles form (CBP Form 255) for each package or container that will be sent to you after you arrive in the United States. This form may be available where you make your purchase. If not, you may find the form on the CBP website.Step 3. When you return to the United States, the CBP officer will: (a) collect Customs duty and any tax due on the dutiable goods you have brought with you; (b) verify your list of unaccompanied articles with your sales receipts; (c) validate your CBP Form 255 to determine if your purchases are duty-free under your personal exemption ($1,600 or $800) or if the purchases are subject to a flat rate of duty.Step 4. Two copies of the three-part CBP Form 255 will be returned to you. Send the yellow copy of the CBP Form 255 to the foreign shopkeeper or vendor holding your purchase, and keep the other copy for your records.Step 5. When the merchant gets your CBP Form 255, he or she must place it in an envelope and attach the envelope securely to the outside wrapping of the package or container. The merchant must also mark each package "Unaccompanied Purchase." Please remember that each package or container must have its own CBP Form 255 attached, the most important step to follow in order to gain the benefits allowed under this procedure.Step 6. If your package has been mailed, the U.S. Postal Service will deliver it after it clears Customs. If you owe duty, the Postal Service will collect the duty along with a postal handling fee. If a freight service transports your package, they will notify you of its arrival and you must go to their office holding the shipment and complete the CBP entry procedure. If you owe duty or tax, you will need to pay it at that time in order to secure the release of the goods. You could also hire a customs customhouse broker to do this for you. However, be aware that customhouse brokers are private businesses and are not CBP employees, and they charge fees for their services.If freight or express packages from your trip landed in the U.S. before you return and you have not made arrangements to pick them up, CBP will authorize their placement into general order bonded warehouse or public storage after 15 days (days for perishable, flammable, explosives). This storage and all other related charges (transportation, demurrage, handling) will be at your risk and expense. If the goods are not claimed within six months, they will be sold at auction.Per U.S. Postal Service regulations, packages sent by mail and not claimed within 30 days from the date of U.S. arrival will be returned to the sender unless the amount of duty is being protested.

Key Features of Budget 2016-2017INTRODUCTIONGrowth of Economy accelerated to 7.6% in 2015-16.India hailed as a ‘bright spot’ amidst a slowing global economy by IMF.Robust growth achieved despite very unfavourable global conditionsand two consecutive years shortfall in monsoon by 13%Foreign exchange reserves touched highest ever level of about 350 billion US dollars.Despite increased devolution to States by 55% as a result of the 14thFinance Commission award, plan expenditure increased at RE stage in2015-16 – in contrast to earlier years.CHALLENGES IN 2016-17Risks of further global slowdown and turbulence.Additional fiscal burden due to 7th Central Pay Commissionrecommendations and OROP.ROADMAP & PRIORITIES'Transform India' to have a significant impact on economy and lives ofpeople.Government to focus on –ensuring macro-economic stability and prudent fiscalmanagement.boosting on domestic demandcontinuing with the pace of economic reforms and policyinitiatives to change the lives of our people for the better.Focus on enhancing expenditure in priority areas of - farm and ruralsector, social sector, infrastructure sector employment generation andrecapitalisation of the banks.Focus on Vulnerable sections through:Pradhan Mantri Fasal Bima YojanaNew health insurance scheme to protect against hospitalisationexpenditurefacility of cooking gas connection for BPL familiesContinue with the ongoing reform programme and ensure passage ofthe Goods and Service Tax bill and Insolvency and Bankruptcy lawUndertake important reforms by:giving a statutory backing to AADHAR platform to ensure benefits reach the deserving.freeing the transport sector from constraints and restrictionsincentivising gas discovery and exploration by providingcalibrated marketing freedomenactment of a comprehensive law to deal with resolution offinancial firmsprovide legal framework for dispute resolution andre-negotiations in PPP projects and public utility contractsundertake important banking sector reforms and public listing ofgeneral insurance companies undertake significant changes in FDIpolicy.AGRICULTURE AND FARMERS’ WELFAREAllocation for Agriculture and Farmers’ welfare is ₹ 35,984 crore‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in missionmode. 28.5 lakh hectares will be brought under irrigation.Implementation of 89 irrigation projects under AIBP, which arelanguishing for a long time, will be fast trackedA dedicated Long Term Irrigation Fund will be created in NABARD withan initial corpus of about ₹ 20,000 croreProgramme for sustainable management of ground water resourceswith an estimated cost of ₹ 6,000 crore will be implemented through multilateral funding5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compostpits for production of organic manure will be taken up under MGNREGASoil Health Card scheme will cover all 14 crore farm holdings by March2017.2,000 model retail outlets of Fertilizer companies will be provided withsoil and seed testing facilities during the next three yearsPromote organic farming through ‘Parmparagat Krishi Vikas Yojana’ and 'Organic Value Chain Development in North East Region'.Unified Agricultural Marketing ePlatform to provide a common e- market platform for wholesale marketsAllocation under Pradhan Mantri Gram Sadak Yojana increased to `19,000 crore. Will connect remaining 65,000 eligible habitations by2019.To reduce the burden of loan repayment on farmers, a provision of ₹15,000 crore has been made in the BE 2016-17 towards interestsubventionAllocation under Prime Minister Fasal Bima Yojana ₹ 5,500 crore.850 crore for four dairying projects - ‘Pashudhan Sanjivani’, ‘NakulSwasthya Patra’, ‘E-Pashudhan Haat’ and National Genomic Centre forindigenous breedsRURAL SECTORAllocation for rural sector - ₹ 87,765 crore.₹ 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats andMunicipalities as per the recommendations of the 14th FinanceCommissionEvery block under drought and rural distress will be taken up as anintensive Block under the Deen Dayal Antyodaya MissionA sum of ₹ 38,500 crore allocated for MGNREGS.300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission100% village electrification by 1st May, 2018.District Level Committees under Chairmanship of senior most Lok SabhaMP from the district for monitoring and implementation of designatedCentral Sector and Centrally Sponsored Schemes.Priority allocation from Centrally Sponsored Schemes to be made toreward villages that have become free from open defecation.A new Digital Literacy Mission Scheme for rural India to cover around 6 crore additional household within the next 3 years.National Land Record Modernisation Programme has been revamped.New scheme Rashtriya Gram Swaraj Abhiyan proposed with allocationof ₹ 655 crore.SOCIAL SECTOR INCLUDING HEALTH CAREAllocation for social sector including education and health care –₹1,51,581 crore.₹ 2,000 crore allocated for initial cost of providing LPG connections toBPL families.New health protection scheme will provide health cover up to ` Onelakh per family. For senior citizens an additional top-up package up to `30,000 will be provided.3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will beopened during 2016-17.‘National Dialysis Services Programme’ to be started under National Health Mission through PPP mode“Stand Up India Scheme” to facilitate at least two projects per bankbranch. This will benefit at least 2.5 lakh entrepreneurs.National Scheduled Caste and Scheduled Tribe Hub to be set up inpartnership with industry associationsAllocation of ₹ 100 crore each for celebrating the Birth Centenary ofPandit Deen Dayal Upadhyay and the 350th Birth Anniversary of GuruGobind Singh.EDUCATION, SKILLS AND JOB CREATION62 new Navodaya Vidyalayas will be openedSarva Shiksha Abhiyan to increasing focus on quality of educationRegulatory architecture to be provided to ten public and ten privateinstitutions to emerge as world-class Teaching and Research InstitutionsHigher Education Financing Agency to be set-up with initial capital baseof ₹ 1000 CroresDigital Depository for School Leaving Certificates, College Degrees,Academic Awards and Mark sheets to be set-up.SKILL DEVELOPMENTAllocation for skill development – ₹ 1804. crore.1500 Multi Skill Training Institutes to be set-up.National Board for Skill Development Certification to be setup inpartnership with the industry and academiaEntrepreneurship Education and Training through Massive Open OnlineCoursesJOB CREATIONGoI will pay contribution of 8.33% for of all new employees enrolling inEPFO for the first three years of their employment. Budget provision of₹ 1000 crore for this scheme.Deduction under Section 80JJAA of the Income Tax Act will be availableto all assesses who are subject to statutory audit under the Act100 Model Career Centres to operational by the end of 2016-17 underNational Career Service.Model Shops and Establishments Bill to be circulated to States.INFRASTRUCTURE AND INVESTMENTTotal investment in the road sector, including PMGSY allocation, wouldbe ₹ 97,000 crore during 2016-17.India’s highest ever kilometres of new highways were awarded in 2015.To approve nearly 10,000 kms of National Highways in 2016-17.Allocation of ₹ 55,000 crore in the Budget for Roads. Additional `15,000 crore to be raised by NHAI through bonds.Total outlay for infrastructure - ₹ 2,21,246 crore.Amendments to be made in Motor Vehicles Act to open up the roadtransport sector in the passenger segmentAction plan for revival of unserved and underserved airports to bedrawn up in partnership with State Governments.To provide calibrated marketing freedom in order to incentivise gasproduction from deep-water, ultra deep-water and high pressure-hightemperature areasComprehensive plan, spanning next 15 to 20 years, to augment theinvestment in nuclear power generation to be drawn up.Steps to re-vitalise PPPs:Public Utility (Resolution of Disputes) Bill will be introduced during2016-17Guidelines for renegotiation of PPP Concession Agreements will beissuedNew credit rating system for infrastructure projects to beintroducedReforms in FDI policy in the areas of Insurance and Pension, AssetReconstruction Companies, Stock Exchanges.100% FDI to be allowed through FIPB route in marketing of foodproducts produced and manufactured in India.A new policy for management of Government investment in PublicSector Enterprises, including disinvestment and strategic sale, approved.FINANCIAL SECTOR REFORMSA comprehensive Code on Resolution of Financial Firms to beintroduced.Statutory basis for a Monetary Policy framework and a Monetary PolicyCommittee through the Finance Bill 2016.A Financial Data Management Centre to be set up.RBI to facilitate retail participation in Government securities.New derivative products will be developed by SEBI in the CommodityDerivatives market.Amendments in the SARFAESI Act 2002 to enable the sponsor of an ARCto hold up to 100% stake in the ARC and permit non institutionalinvestors to invest in Securitization Receipts.Comprehensive Central Legislation to be bought to deal with themenace of illicit deposit taking schemes.Increasing members and benches of the Securities Appellate Tribunal.Allocation of ₹ 25,000 crore towards recapitalisation of Public SectorBanks.Target of amount sanctioned under Pradhan Mantri Mudra Yojanaincreased to ₹ 1,80,000 crore.General Insurance Companies owned by the Government to be listed inthe stock exchanges.GOVERNANCE AND EASE OF DOING BUSINESSA Task Force has been constituted for rationalisation of human resources in various Ministries.Comprehensive review and rationalisation of Autonomous Bodies.Bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the Aadhar framework to be introduced.Introduce DBT on pilot basis for fertilizer.Automation facilities will be provided in 3 lakh fair price shops byMarch 2017.Amendments in Companies Act to improve enabling environment for start-ups.Price Stabilisation Fund with a corpus of ₹ 900 crore to help maintainstable prices of Pulses.“Ek Bharat Shreshtha Bharat” programme will be launched to linkStates and Districts in an annual programme that connects peoplethrough exchanges in areas of language, trade, culture, travel andtourism.FISCAL DISCIPLINEFiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%.Revenue Deficit target from 2.8% to 2.5% in RE 2015-16Total expenditure projected at ₹ 19.78 lakh crorePlan expenditure pegged at ₹ 5.50 lakh crore under Plan, increase of15.3%Non-Plan expenditure kept at ₹ 14.28 lakh croresSpecial emphasis to sectors such as agriculture, irrigation, social sectorincluding health, women and child development, welfare of ScheduledCastes and Scheduled Tribes, minorities, infrastructure.Mobilisation of additional finances to the extent of ₹ 31,300 crore byNHAI, PFC, REC, IREDA, NABARD and Inland Water Authority by raisingBonds.Plan / Non-Plan classification to be done away with from 2017-18.Every new scheme sanctioned will have a sunset date and outcomereview.Rationalised and restructured more than 1500 Central Plan Schemesinto about 300 Central Sector and 30 Centrally Sponsored Schemes.Committee to review the implementation of the FRBM Act.RELIEF TO SMALL TAX PAYERSRaise the ceiling of tax rebate under section 87A from ₹2000 to ₹5000to lessen tax burden on individuals with income upto `5 laks.Increase the limit of deduction of rent paid under section 80GG from₹24000 per annum to ₹60000, to provide relief to those who live inrented houses.BOOST EMPLOYMENT AND GROWTHIncrease the turnover limit under Presumptive taxation scheme undersection 44AD of the Income Tax Act to ₹ 2 crores to bring big relief to alarge number of assessees in the MSME category.Extend the presumptive taxation scheme with profit deemed to be 50%,to professionals with gross receipts up to ₹50 lakh.Phasing out deduction under Income Tax:Accelerated depreciation wherever provided in IT Act will belimited to maximum 40% from 1.4.2017Benefit of deductions for Research would be limited to 150% from1.4.2017 and 100% from 1.4.2020Benefit of section 10AA to new SEZ units will be available to thoseunits which commence activity before 31.3.2020.The weighted deduction under section 35CCD for skill developmentwill continue up to 1.4.2020Corporate Tax rate proposals:New manufacturing companies incorporated on or after 1.3.2016to be given an option to be taxed at 25% + surcharge and cessprovided they do not claim profit linked or investment linkeddeductions and do not avail of investment allowance andaccelerated depreciation.Lower the corporate tax rate for the next financial year forrelatively small enterprises i.e companies with turnover notexceeding ₹ 5 crore (in the financial year ending March 2015), to29% plus surcharge and cess.100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019. MAT will apply in such cases.10% rate of tax on income from worldwide exploitation of patentsdeveloped and registered in India by a resident.Complete pass through of income-tax to securitization trusts includingtrusts of ARCs. Securitisation trusts required to deduct tax at source.Period for getting benefit of long term capital gain regime in case ofunlisted companies is proposed to be reduced from three to two years.Non-banking financial companies shall be eligible for deduction to theextent of 5% of its income in respect of provision for bad and doubtfuldebts. .Determination of residency of foreign company on the basis of Place ofEffective Management (POEM) is proposed to be deferred by one year.Commitment to implement General Anti Avoidance Rules (GAAR) from1.4.2017.Exemption of service tax on services provided under Deen DayalUpadhyay Grameen Kaushalya Yojana and services provided byAssessing Bodies empanelled by Ministry of Skill Development &Entrepreneurship.Exemption of Service tax on general insurance services provided under‘Niramaya’ Health Insurance Scheme launched by National Trust for theWelfare of Persons with Autism, Cerebral Palsy, Mental Retardation andMultiple Disability.Basic custom and excise duty on refrigerated containers reduced to 5%and 6%.MAKE IN INDIAChanges in customs and excise duty rates on certain inputs to reducecosts and improve competitiveness of domestic industry in sectors likeInformation technology hardware, capital goods, defence production,textiles, mineral fuels & mineral oils, chemicals & petrochemicals,paper, paperboard & newsprint, Maintenance repair and overhauling[MRO] of aircrafts and ship repair.MOVING TOWARDS A PENSIONED SOCIETYWithdrawal up to 40% of the corpus at the time of retirement to be taxexempt in the case of National Pension Scheme (NPS). Annuity fundwhich goes to legal heir will not be taxable.In case of superannuation funds and recognized provident funds,including EPF, the same norm of 40% of corpus to be tax free will applyin respect of corpus created out of contributions made on or from1.4.2016.Limit for contribution of employer in recognized Provident andSuperannuation Fund of ₹ 1.5 lakh per annum for taking tax benefit. Exemption from service tax for Annuity services provided by NPS andServices provided by EPFO to employees.Reduce service tax on Single premium Annuity (Insurance) Policies from3.5% to 1.4% of the premium paid in certain cases.PROMOTING AFFORDABLE HOUSING100% deduction for profits to an undertaking in housing project for flatsupto 30 sq. metres in four metro cities and 60 sq. metres in other cities,approved during June 2016 to March 2019 and completed in threeyears. MAT to apply.Deduction for additional interest of ₹50,000 per annum for loans up to₹35 lakh sanctioned in 2016-17 for first time home buyers, wherehouse cost does not exceed ₹ 50 lakh.Distribution made out of income of SPV to the REITs and INVITs havingspecified shareholding will not be subjected to Dividend DistributionTax, in respect of dividend distributed after the specified date.Exemption from service tax on construction of affordable houses up to60 square metres under any scheme of the Central or StateGovernment including PPP Schemes.Extend excise duty exemption, presently available to Concrete Mixmanufactured at site for use in construction work to Ready MixConcrete.RESOURCE MOBILIZATION FOR AGRICULTURE, RURAL ECONOMY AND CLEAN ENVIRONMENTAdditional tax at the rate of 10% of gross amount of dividend will bepayable by the recipients receiving dividend in excess of ₹ 10 lakh perannum.Surcharge to be raised from 12% to 15% on persons, other thancompanies, firms and cooperative societies having income above ₹ 1crore.Tax to be deducted at source at the rate of 1 % on purchase of luxurycars exceeding value of ₹ 10 lakh and purchase of goods and services incash exceeding ₹ 2 lakh.Securities Transaction tax in case of ‘Options’ is proposed to beincreased from .017% to .05%.Equalization levy of 6% of gross amount for payment made to non- residents exceeding ₹1 lakh a year in case of B2B transactions.Krishi Kalyan Cess, @ 0.5% on all taxable services, w.e.f. 1 June 2016.Proceeds would be exclusively used for financing initiatives forimprovement of agriculture and welfare of farmers. Input tax credit ofthis cess will be available for payment of this cess.Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on dieselcars of certain capacity and 4% on other higher engine capacity vehicles and SUVs. No credit of this cess will be available nor credit of any othertax or duty be utilized for paying this cess.Excise duty of ‘1% without input tax credit or 12.5% with input taxcredit’ on articles of jewellery [excluding silver jewellery, other thanstudded with diamonds and some other precious stones], with a higherexemption and eligibility limits of ₹6 crores and ₹12 croresrespectively.Excise on readymade garments with retail price of ₹1000 or moreraised to 2% without input tax credit or 12.5% with input tax credit.‘Clean Energy Cess’ levied on coal, lignite and peat renamed to ‘CleanEnvironment Cess’ and rate increased from ₹200 per tonne to ₹400 pertonne.Excise duties on various tobacco products other than beedi raised byabout 10 to 15%.Assignment of right to use the spectrum and its transfers has beendeducted as a service leviable to service tax and not sale of intangiblegoods.PROVIDING CERTAINITY IN TAXATIONCommitted to providing a stable and predictable taxation regime andreduce black money.Domestic taxpayers can declare undisclosed income or such incomerepresented in the form of any asset by paying tax at 30%, andsurcharge at 7.5% and penalty at 7.5%, which is a total of 45% of theundisclosed income. Declarants will have immunity from prosecution.Surcharge levied at 7.5% of undisclosed income will be called KrishiKalyan surcharge to be used for agriculture and rural economy.New Dispute Resolution Scheme to be introduced. No penalty inrespect of cases with disputed tax up to ₹10 lakh. Cases with disputedtax exceeding ₹10 lakh to be subjected to 25% of the minimum of theimposable penalty. Any pending appeal against a penalty order can also be settled by paying 25% of the minimum of the imposable penalty andtax interest on quantum addition.High Level Committee chaired by Revenue Secretary to oversee freshcases where assessing officer applies the retrospective amendment.One-time scheme of Dispute Resolution for ongoing cases underretrospective amendment.Penalty rates to be 50% of tax in case of under reporting of income and200% of tax where there is misreporting of facts.Disallowance will be limited to 1% of the average monthly value ofinvestments yielding exempt income, but not exceeding the actualexpenditure claimed under rule 8D of Section 14A of Income Tax Act.Time limit of one year for disposing petitions of the tax payers seekingwaiver of interest and penalty.Mandatory for the assessing officer to grant stay of demand once theassesse pays 15% of the disputed demand, while the appeal is pendingbefore Commissioner of Income-tax (Appeals).Monetary limit for deciding an appeal by a single member Bench ofITAT enhanced from ₹15 lakhs to ₹50 lakhs.11 new benches of Customs, Excise and Service Tax Appellate Tribunal(CESTAT).SIMPLIFICATION AND RATIONALIZATION OF TAXES13 cesses, levied by various Ministries in which revenue collection isless than ₹50 crore in a year to be abolished.For non-residents providing alternative documents to PAN card, higherTDS not to apply.Revision of return extended to Central Excise assesses.Additional options to banking companies and financial institutions,including NBFCs, for reversal of input tax credits with respect to non- taxable services.Customs Act to provide for deferred payment of customs duties for importers and exporters with proven track record.Customs Single Window Project to be implemented at major ports andairports starting from beginning of next financial year.Increase in free baggage allowance for international passengers. Filingof baggage only for those carrying dutiable goods.TECHNOLOGY FOR ACCOUNTABILITYExpansion in the scope of e-assessments to all assessees in 7 megacities in the coming years.Interest at the rate of 9% p.a against normal rate of 6% p.a for delay ingiving effect to Appellate order beyond ninety days.‘e-Sahyog’ to be expanded to reduce compliance cost, especially forsmall taxpayers.

Import Procedure:Import trade refers to the purchase of goods from a foreign country. The procedure for import trade differs from country to country depending upon the import policy, statutory requirements and customs policies of different countries. In almost all countries of the world import trade is controlled by the government. The objectives of these controls are proper use of foreign exchange restrictions, protection of indigenous industries etc. The imports of goods have to follow a procedure. This procedure involves a number of steps.The steps taken in import procedure are discussed as follows:(i) Trade Enquiry:The first stage in an import transaction, like any other transaction of purchase and sale relates to making trade enquiries. An enquiry is a written request from the intending buyer or his agent for information regarding the price and the terms on which the exporter will be able to supply goods.The importer should mention in the enquiry all the details such as the goods required, their description, catalogue number or grade, size, weight and the quantity required. Similarly, the time and method of delivery, method of packing, terms and conditions in regard to payment should also be indicated.In reply to this enquiry, the importer will receive a quotation from the exporter. The quotation contains the details as to the goods available, their quality etc., the price at which the goods will be supplied and the terms and conditions of the sale.(ii) Procurement of Import Licence and Quota:The import trade in India is controlled under the Imports and Exports (Control) Act, 1947. A person or a firm cannot import goods into India without a valid import licence. An import licence may be either general licence or specific licence. Under a general licence goods can be imported from any country, whereas a specific or individual licence authorities to import only from specific countries.The Government of India declares its import policy in the Import Trade Control Policy Book called the Red Book. Every importer must first find out whether he can import the goods he wants or not, and how much of a certain class of goods he can import during the period covered by the relevant Red Book.For the purpose of issuing licence, the importers are divided into three categories:(a) Established importer,(b) Actual users, and(c) Registered exporters, i.e., those import under any of the export promotion schemes.In order to obtain an import licence, the intending importer has to make an application in the prescribed form to the licensing authority. If the person imported goods of the class in which he is interested now during the basic period prescribed for such class, he is treated as an established importer.An established importer can make an application to secure a Quota Certificate. The certificate specifies the quantity and value of goods which the importer can import. For this, he furnishes details of the goods imported in any one year in basic period prescribed for the goods together with documentary evidence for the same, including a certificate from a chartered accountant in the prescribed form certifying the c.i.f. value of the goods imported in the selected year.The c.i.f. value includes the invoice price of the goods and the freight and insurance paid for the goods in transit. The quota certificate entitles the established importer to import upto the value indicated therein (called Quota) which is calculated on the basis of past imports. If the importer is an actual user, that is, he wants to import goods for his own use in industrial manufacturing process he has to obtain licence through the prescribed sponsoring authority.The sponsoring authority certifies his requirements and recommends the grant of licence. In case of small industries having a capital of less than Rs. 5 lakhs, they have to apply for licences through the Director of Industries of the state where the industry is located or some other authority expressly prescribed by the Government.Registered exporter importing against exports made under a scheme of export promotion and others have to obtain licence from the Chief Controller of Exports and Imports. The Government issues from time to time a list of commodities and products which can be imported by obtaining a general permission only. This is called as O.G.L. or Open General Licence list.(iii) Obtaining Foreign Exchange:After obtaining the licence (or quota, in case of an established importer), the importer has to make arrangement for obtaining necessary foreign exchange since the importer has to make payment for the imports in the currency of the exporting country.The foreign exchange reserves in many countries are controlled by the Government and are released through its central bank. In India, the Exchange Control Department of the Reserve Bank of India deals with the foreign exchange. For this the importer has to submit an application in the prescribed form along-with the import licence to any exchange bank as per the provisions of Exchange Control Act.The exchange bank endorses and forwards the applications to the Exchange Control Department of the Reserve Bank of India. The Reserve Bank of India sanctions the release of foreign exchange after scrutinizing the application on the basis of exchange policy of the Government of India in force at the time of application.The importer gets the necessary foreign exchange from the exchange bank concerned. It is to be noted that whereas import licence is issued for a particular period, exchange is released only for a specific transaction. With liberalisation of economy, most of the restrictions have been removed as rupee has become convertible on current account.(iv) Placing the Indent or Order:After the initial formalities are over and the importer has obtained the licence quota and the necessary amount of foreign exchange, the next step in the import of goods is that of placing the order. This order is known as Indent. An indent is an order placed by an importer with an exporter for the supply of certain goods.It contains the instructions from the importer as to the quantity and quality of goods required, method of forwarding them, nature of packing, mode of settling payment and the price etc. An indent is usually prepared in duplicate or triplicate. The indent may be of several types like open indent, closed indent and Confirmatory indent.In open indent, all the necessary particulars of goods, price, etc. are not mentioned in the indent, the exporter has the discretion to complete the formalities, at his own end. On the other hand, if full particulars of goods, the price, the brand, packing, shipping, insurance etc. are mentioned clearly, it is called a closed indent. A confirmatory indent is one where an order is placed subject to the confirmation by the importer’s agent.(v) Despatching a Letter of Credit:Generally, foreign traders are not acquainted to each other and so the exporter before shipping the goods wants to be sure about the creditworthiness of the importer. The exporter wants to be sure that there is no risk of non-payment. Usually, for this purpose he asks the importers to send a letter of credit to him.A letter of credit, popularly known as ‘L/C or ‘L.C is an undertaking by its issuer (usually importer’s bank) that the bills of exchange drawn by the foreign dealer, on the importer will be honoured on presentation upto a specified amount.(vi) Obtaining Necessary Documents:After despatching a letter of credit, the importer has not to do much. On receipt of the letter of credit, the exporter arranges for the shipment of goods and sends Advice Note to the importer immediately after the shipment of goods. An Advice Note is a document sent to a purchaser of goods to inform him that goods have been despatched. It may also indicate the probable date on which the ship is expected to reach the port of destination.The exporter then draws a bill of exchange on the importer for the invoice value of goods. The shipping documents such as the bill of lading, invoice, insurance policy, certificate of origin, consumer invoice etc., are also attached to the bill of exchange. Such bill of exchange with all these attached documents is called Documentary Bill. Documentary bill of exchange is forwarded to the importer through a foreign exchange bank which has a branch or an agent in the importer’s country for collecting the payment of the bill.There are two types of documentary bills:(a) D/P, D.P. (or Documents against payment) bills.(b) D/A, D.A. (or Document against acceptance) bills.If the bill of exchange is a D/P bill, then the documents of title of goods are delivered to the drawee (i.e., importer) only on the payment of the bill in full. D/P bill may be sight bill or usance bill. In case of sight bill, the payment has to be made immediately on the presentation of the bill. But usually a grace period of 24 hours is granted.Usance bill is to be paid within a particular period after sight. If the bill is a D/A bill, then the documents of title of goods are released to the drawee on his acceptance of the bill and it is retained by the banker till the date of maturity. Usually 30 to 90 days are provided for the payment of the bill.(vii) Customs Formalities and Clearing of Goods:After receiving the documents of title of the goods, the importer’s only concern is to take delivery of the goods, when the ship arrives at the port and to bring them to his own place of business. The importer has to comply with many formalities for taking delivery of goods. Unless the following mentioned formalities are complied with, the goods lie in the custody of the Custom House.(a) To obtain endorsement for delivery or delivery order:When the ship carrying the goods arrives at the port, the importer, first of all, has to obtain the endorsement on the back of the bill of lading by the shipping company. Sometimes the shipping company, instead of endorsing the bill in his favour, issues a delivery order to him. This endorsement of delivery order will entitle the importer to take the delivery of the goods.The shipping company makes this endorsement or issues the delivery order only after the payment of freight. If the exporter has not paid the freight, i.e., when the bill, of lading is marked freight forward, the importer has to pay the freight in order to get green signal for the delivery of goods.(b) To pay Dock dues and obtain Port Trust Dues Receipts:The importer has to submit two copies of a form known as ‘Application to import’ duly filled in to the ‘Lading and Shipping Dues Office’. This office levies a charge on all imported goods for services rendered by the dock authorities in connection with lading of goods. After paying the necessary charges, the importer receive back one copy of the application to import as a receipt ‘Port Trust Dues Receipt’.(c) Bill of Entry:The importer will then fill in form called Bill of Entry. This is a form supplied by the custom office and is to be filled in triplicate. The bill of entry contains the particulars regarding the name and address of the importer, the name of the ship, packages number, marks, quantity, value, description of goods, the name of the country wherefrom goods have been imported and custom duty payable.The bill of entry forms are of three types and are printed in three colours-Black, Blue and Violet. A black form is used for non-dutiable or free goods, the blue form is used for goods to be sold within the country and the violet form is used for re-exportable goods, i.e., goods meant for re-export. The importer has to submit three forms of bill of entry along-with Port Trust Dues Receipt to the customs office.(d) Bill of Sight:If the importer is not is a position to supply the detailed particulars of goods because of insufficiency of information supplied to him by the exporter, he has to prepare a statement called a bill of sight. The bill of sight contains only the information possessed by the importer along-with a remark that he is not in a position to give complete information about the goods. The bill of sight enables him to open the package and examine the goods in the presence of custom officer so as to complete the bill of entry.(e) To pay Customs or Import Duty:There are three types of imported goods:(i) Non dutiable or free goods,(ii) Goods which are to be sold within the country or which are for home consumption, and(iii) Re-exportable goods i.e. goods meant for re-export. If the goods are duty free, no import duty is to be paid at the custom office.Custom authorities will permit the delivery of such goods after usual examination of the goods. But if the goods are liable for duty, the importer has to pay custom or import duty which may be based on weight or measurement of goods, called Specific Duty or on the value of imported goods Ad-valorem Ditty.There are three types of import duties. On some goods quite low duties are levied and they are called revenue duties. On some others, quite high duties are charged to give protection to home industries against foreign competition. While goods imported from certain nations are given preferential treatment for the levy of import duties and in their case full protective duties are not charged.(f) Bonded and Duty paid Warehouses:The port trust and custom authorities maintain two types of warehouses-Bonded and Duty paid. These warehouses are situated near the dock and are very useful to importers who do not have godown of their own to store the imported goods or who, for business reasons, do not wish to carry them to their own godowns.The goods on which the duty has already been paid by the importer can be kept in the duty paid warehouses for which a receipt called ‘warehouse receipt’ is issued to him. This receipt is a document of title and is transferable. The bonded warehouses are meant for goods on which duty has been paid by the importer. If the importer cannot pay the duty, he may keep the goods in Bonded warehouses for which he is issued a receipt, called ‘Dock Warrant’. Dock Warrant, also like warehouses receipt, is a document of title and is transferable.The bonded warehouses are used by the importer when:(i) He has no godown of his own.(ii) He cannot pay the duty immediately.(iii) He wants to re-export the goods and thereby does not want to pay the duty.(iv) He wants to pay the duty in installments.A nominal rent is charged for the use of these warehouses. One special advantage of these warehouses is that the importer can sell the goods and transfer the title of goods merely by endorsing warehouse receipt or dock-warrant. This will save the importer from the trouble and expenses of carrying the goods from the warehouses to his godown.(g) Appointment of clearing Agents:By now we understand that the importer has to fulfill many legal formalities before he can take delivery of goods. The importer may take the delivery of the goods himself at the port. But it involves much of time, expenses and difficulty. Thus, to save himself from the botheration of complying with all the complicated formalities, the importer may appoint clearing agents for taking the delivery of the goods for him. Clearing agents are the specialised persons engaged in the work of performing various formalities required for taking the delivery of goods on behalf of others. They charge some remuneration on performing these valuable services.(viii) Making the Payment:The mode and time of making payment is determined according to the terms and conditions as agreed to earlier between the importer and the exporter. In case of a D/P bill the documents of title are released to the importer only on the payment of the bill in full. If the bill is a D/A bill, the documents of title of the goods are released to the importer on his acceptance of the bill. The bill is retained by the banker till the date of maturity. Usually, 30 to 90 days are allowed to the importer for making the payment of such bills.(ix) Closing the Transactions:The last step in the import trade procedure is closing the transaction. If the goods are to the satisfaction of the importer, the transaction is closed. But if he is not satisfied with the quality of goods or if there is any shortage, he will write to the exporter and settle the matter. In case the goods have been damaged in transit, he will claim compensation from the insurance company. The insurance company will pay him the compensation under an advice to the exporter.