Business

Centre extends container re-import timeline in relief for exporters

This step is anticipated to scale back the export of the empty containers from the nation on floor of imposition of import responsibility, thus rising the provision of containers for the commerce.

The central authorities on Saturday relaxed norms for exporters dealing with international container scarcity. The Central Board of Indirect Taxes and Customs (CBIC) issued a round, which gave three extra months for the re-export of imported vessels mendacity at home ports.

“This step is expected to reduce the export of the empty containers from the country on ground of imposition of import duty, thus increasing the availability of containers for the trade,” the federal government notification mentioned.

Currently, duty-free imports of containers are allowed with the situation of re-export in the following six months. However, conserving containers past six months is taken into account as deemed import and thus import responsibility is levied, a coverage aimed toward guaranteeing sooner turnaround of containers.

To keep away from such import duties, transport traces export empty containers to evade responsibility cost on containers that are mendacity empty. But, such practices are aggravating the issue of scarcity of containers for exports.

So, the CBIC has given the relief as a “temporary measure” to enhance containers obtainable presently for export of containerised cargo. The resolution has been taken because of the disruption attributable to the coronavirus illness (Covid-19) pandemic, which resulted in excessive transport freight charges and container scarcity globally.

The situation was repeatedly flagged by exporters in India too.

“The CBIC has issued a guidance to field offices to extend this period by three months where the container is being taken out of the country in laden condition provided the six month period falls before end of FY22,” the CBIC mentioned.

This step is anticipated to scale back the export of the empty containers from the nation on floor of imposition of import responsibility, thus rising the provision of containers for the commerce.

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