Subject: All officers and staff are hereby informed that the budgetary changes in respect of Notification 18/2014- Customs and 19/2014- Customs, have been effected as under:

A. For Bills of Entries filed on or after 13.07.2014:
It is informed that Education and Higher Education cess on CVD was exempted for all goods vide Notification No. 13/2012-Customs & 14/2012 – Customs respectively. Hence no additional field was provided in the BE format to claim exemption from Education and Higher Education cess on CVD.
In this budget, Notification 18/2014- Customs and 19/2014- Customs were issued withdrawing the exemptions given vide 13/2012-Customs and 14/2012-Customs for certain electronic goods.

Hence to incorporate such changes, new Column has been introduced in B.E. Format / Assessment to enable importers to claim exemption from this levy based on 13/2012-Customs read with 18/2014 (as amended).

In the revised procedure, Education & higher Education Cess on CVD will be levied on all goods by default. Importers who are eligible may claim exemption in the new column by quoting 013/2012 Sl.No. 1. It is to be noted that by quoting 013/2012 Sl. No. 1 both Education Cess and Higher Education Cess will be exempted. So there is no necessity of claiming 14/2012 for exemption of Higher Education Cess separately.

The calculations may be checked manually and any discrepancies may be informed to the system manager immediately. Similar to many other notifications, the ICES system has limitations in completely validating the eligibility of this exemption. The Appraising/Out of charge officers must ensure the eligibility of the goods for this exemption before final clearance.

B. For Bills of Entries filed on 11.07.2014 and 12.07.2014:
The above said changes in the ICES 1.5 system are incorporated since 13.07.2014. In case of the Bill of Entries filed before 13.07.2014, the Education and Higher Education cess on CVD imposed by Notification 18/2014- Customs and 19/2014- Customs withdrawing the exemptions given vide 13/2012-Customs and 14/2012-Customs for certain electronic goods is required to be paid manually .

Further Education and Higher Education cess on CVD will also increase the amount of 4 % SAD payable on the goods. It may be noted that 4% SAD is being calculated by the System without the Edu Cess and SHE cess component of Central Excise. But the differential portion of 4% SAD on the manually calculated Central Excise Cesses, are also to be collected manually.

It is directed that all Officers involved in processing and clearance of the consignments under these Notifications shall ensure payment of correct Education and SHE cess and 4% SAD through manual challans, in addition to the duties calculated by the system. The details of differential Cess and 4% SAD amounts paid/collected may be recorded in the Departmental Comments before finally allowing the clearances. Group AC/DC/AO and Docks AC/DC/AO and Supdts shall also ensure details of the differential Cess and 4% SAD amount collected/paid are properly accounted for, under the appropriate Head.

Otherwise it is advisable to recall the bills of entries filed on 12.07.2014 and reassess them for correct payment of the Education and Higher Education cess on CVD imposed by Notification 18/2014- Customs and 19/2014- Customs withdrawing the exemptions given vide 13/2012-Customs and 14/2012-Customs for certain electronic goods and consequent changes in the 4% SAD payable on these goods.

Sd/-14.07.2014
(SEEMA JERE BISHT)
COMMISSIONER OF CUSTOMS (IMPORT)
JNCH, NHAVA SHEVA

Copy to:
1. The Chief Commissioner of Customs, Mumbai Zone-II.
2. The Commissioner of Customs (Export).
3. All the Addl/ Joint Commissioner of Customs (Import), JNCH.
4. All the DC/ACs, JNCH.
5. AC/EDI ………………. for display at JNCH Website