CBIC orders release of imports without delay
customs authorities to release goods imported via third-party invoicing under free trade agreements (FTA) «without delay».
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Industry was facing delays in release of consignments and denial of free trade agreement benefits with authorities questioning value addition in third-party invoicing, ET reported on June 8.
The Central Board of Indirect Taxes and Customs, or CBIC, has clarified that any verification of invoice, if required, should be carried out only in the terms of legal provisions of the free trade agreement and the Customs (Administration of Rules of Origin under Trade Agreements) Rules that provide for verification of exports from the exporting country on certain grounds.
Customs authorities had begun denying duty concessions under FTA and sought payment of differential customs duty with interest in the case of a third-party invoice or the full duty.
Multinational companies use third-party invoicing for imports in which billing is carried out in a country different from country of origin. Third-party invoicing is permitted under free trade agreements (FTAs).
CBIC in a communique, seen by ET, to customs authorities has reiterated the provisions of CAROTAR, 2020 that lay down that though the importer may be requested for supporting information, he is under no compulsion to submit commercially sensitive
