CBIC extends re-export period for imported containers by 3 months, Retail News, ET Retail
To avoid such import duties, shipping companies export empty containers to evade payment of duties on empty containers. However, such practices exacerbate the problem of shortage of containers for exports.
The Central Council of Indirect Taxes and Customs (CBIC) on Saturday asked its officers on the ground to grant an additional three months for the re-export of imported containers in national ports.
As a temporary measure to improve the availability of containers for the export of containerized goods and to promote the export of loaded sea containers, CBIC has issued a directive to its field offices to extend this three-month period. when the container is taken out of the country in a loaded condition, provided that the six-month period falls before the end of that fiscal year.
The extension of the deadline must be requested by the importer concerned.
The disruption due to the COVID pandemic has resulted in high ocean freight rates and a shortage of containers around the world, an issue that has been repeatedly raised by exporters.
It was highlighted during consultations with stakeholders by the Ministry of Commerce that the problem could be mitigated by creating political incentives to discourage the export of empty containers.
âAs a temporary measure aimed at facilitating the containers currently available for the export of containerized goods and with the aim of promoting the export of loaded sea containers, it is stated that when the initial period of six months extends to ‘as of March 31, 2022.. (a) the provision of (a) circular may also be applied upon receipt of a notice before the expiration of the initial 6 month period from the importer concerned that the container is to be re-exported loaded within the next three months, âthe CBIC said in a circular.
This step is expected to reduce the export of empty containers from the country due to the imposition of import duties, thereby increasing the availability of containers for trade.
The Federation of Indian Export Organizations (FIEO) said it had called for a measure to reduce exports of empty containers from India. The FIEO noted that shipping companies say that since the duty-free import of containers is allowed with re-export conditions with a specified period (6 months can be extended by 3 months), sometimes to meet this deadline, they are obliged to export empty containers.