In accordance with Section 51A(4) of the Customs Act of 1962, the Central Board of Indirect Taxes and Customs (CBIC) announced the extension of the deadline for the listed items to be exempt from deposits in the Electronic Credit Ledger (ECL). The date has been extended from April 30th, 2023 to June 30th 2023.
The term “Electronic Credit Ledger” in the context of customs refers to a system for tracking and using duty credits that are available to importers or exporters.
Similar to the Electronic Credit Ledger maintained for GST in India, the Electronic Credit Ledger is kept in the customs department’s electronic system. It is used to keep track of the credits of the importers and exporters, which can later be utilised to pay duties on subsequent transactions.
It also aids in preventing credit exploitation by making sure that credits are only applied to their intended uses and in accordance with customs laws.
As per the Principal Notification No.18/2023-Customs (N.T.) dated the 30th March 2023, specific goods were exempted under Section 51A(4) of the Customs Act.
The specified goods are the goods imported or exported in customs stations where the customs automated system is not in place; goods imported or exported in International Courier Terminals; accompanied baggage; other than those used for making electronic payment of:
As per section 51A(4) of Customs Act, the CBIC has the wide power to exempt specific goods from making deposits.
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