Amount spent by Customs on opinion

[Pradeep Jain]

Sir,

 

Customs department  want to take Technical  opinion about the product classfication made by us in past under DEPB is appropriate or not.

In this connectioIn the said amount is to be  paid / reibmbursed on behalf of Customs Department to the opinion Agency .

Are we liable to pay the same . If yes under which section or rule.

 

Please confirm

 

Regards

 

Pradeep Jain

 

[shamanthaka mani]

There is no proviison to reimburse Custom Officers for expenses incurred by them in conducting enquiries as deemed fit by them to arrive at assessment of the goods which will include re-assessment.  Therefore there is no reason to reimburse them for opinion obtained on classification.  The Section 145 of Customs Act, 1962 provides that the owner etc. has to perform operation incidental to compliance with the Customs Law which on a plain reading would call for expenses to be incurred by the owner for facilitating examinaiton of the goods and this provision cannot be extended to opinions obtained on classificaiton.  It is well settled that examinaiton or testing of the goods when done by any expert  should only result in report of what are the goods impugned.   The examinaiton and testing authority cannot opine on the classificaiton and their opinions are not relevant or binding as regards classificaiton and valuation.   Therefore there is cause to reimburse the Custom Officers for   opinion obtained on classification or valuation.

AI Summary

Customs Act, 1962: No Reimbursement for Customs Officers' Expenses on Product Classification Opinions Under Section 145. A query was raised regarding whether expenses for obtaining a technical opinion on product classification under DEPB by the Customs Department should be reimbursed. The response clarified that there is no provision under the Customs Act, 1962, for reimbursing Customs Officers for such expenses. Section 145 requires the owner to incur expenses for compliance-related operations, but this does not extend to classification opinions. Opinions on classification by examination or testing authorities are not binding or relevant, and thus, there is no obligation to reimburse the Customs Officers for these opinions.