Customs Tariff (Identification and Assessment of Safeguard Duty) Amendment Rules 2021 Notified by CBIC

The CBIC (Central Board of Indirect Taxes and Customs) has notified an amendment in the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules 1997, by way of a Notification No. 12/ 2021- Customs (N.T.), issued on 01.02.2021. The said amended rules are known as the Customs Tariff (Identification and Assessment of Safeguard Duty) Amendment Rules 2021 and has come into force from 02.02.2021.

In this blog, we will discuss in detail the amendments bought by CBIC by way of the Customs Tariff (Identification and Assessment of Safeguard Duty) Amendment Rules 2021.

Changes made through Customs Tariff (Identification and Assessment of Safeguard Duty) Amendment Rules 2021

The amendments made by way of the Customs Tariff (Identification and Assessment of Safeguard Duty) Amendment Rules 2021 can be summarised as:

Substitution in Sub Rule 1 of Rule 1

In the said sub rule, the word “Duty”, shall be substituted with the term “Measures”.

Amendments in Rule 2

In the said rule, the amendment made in various clauses are as follows:

Clause (b)

In this clause, the word “Duty”, shall be substituted with the term “Measures”.

Clause (d)

In this clause, the word “Duty”, shall be substituted with the term “Measures”.

Clause (f)

In this clause, the term “Provisional Measure” denotes a provisional safeguard measure that is levied under sub section (5) of section 8 B of the Act.

Also, Read: Customs Tariff Amendment Rules 2021 by CBIC

Insertion of Clause (fa)

After clause (f), a new clause named (fa) has been inserted in the said act. Further, in this sub clause, the term “Safeguard Measure” denotes a duty or tariff rate quota or any other measures levied under sub section (1) of section 8 B of the Act.

Insertion of Clause (ga)

After clause (g), a new clause named (ga) has been inserted in the said act. Further, in this sub clause, the term “WTO” denotes World Trade Organisation.

Substitution in Rule 3

In the said sub rule, the word “Safeguard”, shall be substituted with the term “Trade Remedies”.

Amendments in Rule 4

In the said rule, the amendment made in various clauses are as follows:

Clause 2

In this clause, the word “Duty”, shall be substituted with the term “Measures”.

Sub Clause (i) of Clause 4

In this sub clause, the word “Duty”, shall be substituted with the term “Measures”.

Sub Clause (ii) of Clause 4

In this sub clause, the word “Positive” has been omitted.

Clause 5

In this clause, the word “Duty”, shall be substituted with the term “Measures”.

Amendments in Rule 5

In the said rule, the amendment made in various clauses are as follows:

Clause (b) of Sub Rule 2

In this clause, the word “Positive” has been omitted.

Sub Rule 4

In this sub rule, the term “Commissioner of Customs”, shall be substituted with the words “Principal Commissioner of Customs or Commissioner of Customs’.

Amendments in Clause (i) of Sub Rule 1 in Rule 5

In the said clause, the old stipulations will be substituted with “the name of the exporting countries, article involved, and volume of imports.”

Substitution in Rule 8

Based on the newly amended provision, the Director General (DG) shall identify serious injury or threats of serious injury to the domestic industries after taking into account the two principles as follows:

• Firstly, in the process of investigation to determine whether the increased imports have caused or threatening to cause any serious injury to the domestic industry, the DG (Director General) needs to evaluate all the relevant parameters of an objective and quantifiable nature, which are having a bearing on the situation of that industry, in specific, the rate and amount of the boost in imports of the article relating to absolute and relative terms, the percentage of the domestic market acquired by increased imports, changes in the level of production, sales, capacity, productivity, utilisation, profits & losses, and employment.
• Secondly, the said determination will not be made unless the process of investigation demonstrates, objective evidence, existence of a causal link between the increased imports of the article concerned & the serious injury or threat thereof. However, when the factors other than the increased imports are causing serious injury to the domestic industry at the same time, then, in that case, such an injury will not be attributed to increased imports, also in such cases, the Director General (DG) may refer the complaint to the concerned authority for antidumping or countervailing duty investigations, as suitable.

Substitution in Rule 10

In the said rule, the amendments made are as follows:

• The word “Duty”, shall be substituted with the term “Measures”.
• The term “sub-section (2)”, shall be substituted with sub-section (5);

Substitution in Rule 11

In the said rule, the amendments made are as follows:

Sub Rule 2

As per the newly amended provision, the Director General will also have the power to give recommendations concerning the extent of measure which, if in case levied, will be suitable to prevent or cure a serious injury and to enable adjustment.

Further, the level of tariff rate quota, if in case imposed as a measure, the same may be determined by considering the conditions as follows:

• Maintenance of the traditional trade flow of an article over the representative period;
• The prevailing and likely demand supply situation in the country, and;
• Any other condition as may be considered significant;

However, it shall be considerate to take into consideration that the applied tariff rate quota will not reduce the total quantity of the imports below a certain level for the said period, and the same needs to the average of the imports made in the previous three financial years, for which the statistics are available, except, in the case, wherein, a different level is considered necessary to prevent or cure serious injury.

Also, it shall be noteworthy to take into the record that tariff can be both country specific or global.

Sub Rule 3

In the said sub rule, the amendments made are as follows:

• The word “Duty”, shall be substituted with the term “Measures”;
• In the proviso, the word “Positive” has been omitted.

Substitution in Rule 12

In the said rule, the word “Duty”, has been substituted with the term “Measures”;

Amendment in Rule 13

In the said rule, the amendments made are as follows:

• The word “Duty”, shall be substituted with the term “Measures”;
• In the said rule, a new proviso has been inserted. The inserted proviso states that that no such measure will be applied on an article, which is originating from a developing country as long as the total share of imports of that said article from the concerned country does not exceed the limits of three percent. However, in case the said article is originating from more than one developing nation, then, in that case, as long as the aggregate of the total imports from each of such developing nations with less than three percent import share taken together, does not exceed the limit of nine percent of the total imports of that article in India.

Substitution in Rule 14

In the said rule, the word “Duty”, has been substituted with the term “Measures”;

Substitution in Rule 15

As per the newly amended provision, if in case the safeguard measure, levied as a duty after the end of the investigation is less than the provisional measure in the form of a duty already imposed and collected, then, in that case, the differential part will be refunded to the importer.

Substitution in Rule 16

In the said rule, the amendments made are as follows:

• The word “Duty”, shall be substituted with the term “Measures”;
• In the said rule, the word “Positive” has been omitted.

Substitution in Rule 17

In the said rule, the word “Duty”, shall be substituted with the term “Measures”;

Amendment in Rule 17

In the said rule, the amendments made are as follows:

• The word “Duty”, shall be substituted with the term “Measures”;
• In the clause (i) of sub rule (1), the word “Positive” has been omitted;
• After the sub rule 1, a new sub rule named (1A) has been inserted. The said sub rule states that the Director General (DG) has the power to review the usage and implementation of the applicable tariff rate quota for any modification;
• In sub rule 2, after the word, sub rule (1), sub rule (1A) will be inserted.

Insertion of Rule 19

After rule 18, a new provision named rule 19 has been inserted, which states that the Central Government will notify the WTO (World Trade Organisation) regarding all the actions necessary under WTO Agreement on Safeguards. Also, it shall be considerate to take into the note that prior to the imposition of a safeguard measure, an opportunity to hold consultations with the members of the World Trade Organisation, who are having substantial interest as exporters of the concerned product, shall be provided.

Removal of Annexure

Based on the provisions of the Customs Tariff (Identification and Assessment of Safeguard Duty) Amendment Rules 2021, Annexure to the previous rules has been omitted.

Conclusion

In a nutshell, the government had passed such amended rules to be in consonance with the announcements made by the Union Finance Minister, Ms. Nirmala Sitharaman in the speech of the Union Budget 2021.

Further, the said amended rules will be known as the Customs Tariff (Identification and Assessment of Safeguard Duty) Amendment Rules 2021 and had come into effect from 02.02.2021.

Furthermore, in case of any doubt or issue, reach out to Swarit Advisors, our proficient experts are there to solve out all your legal and financial issues.

Official Copy of the Customs Tariff (Identification and Assessment of Safeguard Duty) Amendment Rules 2021

Official-Copy-of-the-Customs-Tariff-Identification-and-Assessment-of-Safeguard-Duty-Amendment-Rules-2021

Also, Read: Implications of Union Budget 2021 on GST Act: A Complete Guide