THE DEADLINE FOR FILING NON-PREFERENTIAL COOS ELECTRONICALLY USING THE COMMON DIGITAL PLATFORM HAS BEEN EXTENDED BY THE DGFT
The Director-General of Foreign Trade (DGFT) has announced that the deadline for filing mandatory electronic non-preferential certificates of origin (CoO) using the Common Digital Platform has been extended until October 1, 2021. The goal of this platform is to provide a single electronic, contact-free window for CoO-related procedures. However, at the request of a few Chambers/Associations, the present manual/paper approach of submitting and processing non-preferential CoO applications will be allowed for the time being, and the online system will not be made mandatory.
The DGFT stated in the Trade Notice that the issuing agencies’ option of submitting and issuing CoO (Non-Preferential) through their paper-based systems may continue until September 30, 2021. All agencies that have been alerted under Appendix-2E must complete the onboarding process by September 30, 2021. Concerned agencies can contact firstname.lastname@example.org via email for any guidance or questions on the onboarding process.
CBIC CONCERNS CLARIFICATION REGARDING THE APPLICABILITY OF IGST ON REPAIR COSTS, INSURANCE, AND FREIGHT ON GOODS RE-IMPORTED AFTER BEING EXPORTED FOR REPAIRS
On the recommendations of the GST Council made at its 43rd meeting, the Central Board of Indirect Tax and Customs (CBIC) issued a clarification on the applicability of IGST on repair costs, insurance, and freight on products re-imported after being exported for repairs. The notification specifies that duties or taxes (including BCD, IGST, and others) shall be due on such imports at the applicable rates, based on the value of repairs, insurance, and freight, rather than the value of the products themselves. Previously, under notification No. 94/96-Customs, the customs duty (BCD, additional duty of customs under section 3 of the Customs Tariff Act, 1975, and so on) was charged on the value of repairs rather than the full value of goods in such imports.
The GST Council discussed the matter and recommended that a suitable clarification, including any clarifying amendments, be issued to remove any doubts about the GST Council’s decision that re-import of goods sent abroad for repair attracts IGST and cess (as applicable) on a value equal to the repair value, insurance, and freight.