Late Fee on Delayed Filing of Bill of Entry: New Provisions will not Hit BoEs filed before the Enactment, says CBEC [Read Circular]

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The Central Board of Excise and Customs (CBEC), on Friday issued clarifications on legislative changes proposed in the Finance Bill, 2017 relating to the Customs Act, 1962 wherein it was clarified that the provisions relating to Late Fee under Finance Bill, 2017 is not applicable to Bill of Entries filed before the enactment of the Finance Act subject to conditions prescribed.

The Finance Bill proposed some significant amendment to sections 46 and 47 of the Customs Act.

The Circular stated that the amendments in section 46 are aimed at prescribing a late charge for delayed filing of Bill of Entry. As per the proposed amendment to s. 46, it is mandatory to file a Bill of Entry before the end of the next day following the day (excluding holidays) on which the vessel or aircraft or vehicle carrying the goods arrives at a customs station at which such goods are to be cleared for home consumption or warehousing. The provision further provides for imposition of such charges for late presentation of the bill of entry as may be prescribed. Consequent to this, the Board had also made some necessary changes in Rules.

The Board has also amended its earlier notifications in order to empower the authorized Officers to consider waiver of late fee in bonafide cases.

Further, an amendment was proposed in section 47 so as to provide the manner of payment of duty and interest thereon in the case of self-assessed Bill of Entry or as the case may be assessed, re-assessed, provisionally assessed bills of entry.

In this regard, the Board clarified that “all BoEs filed before the enactment of Finance Bill, 2017 shall be governed by provisions of section 47 as it stood immediately before the date of such enactment except such BoE is re-assessed, provisional assessed on or after the said enactment, the importer shall have one day (excluding holidays) instead of two days for payment of duty. BoEs filed on the date of enactment or thereafter shall be subject to the new provisions.”

Read the full text of the Circular below.