AIDC Exemption for SAFTA

[Imran Ali]

Will i be benefited from AIDC onto import in India from Bangladesh for HS Code 94031070 (Furniture of Plastics) if i provide SAFTA Certificate.

As by Providing SAFTA the BCD becomes Nill, Will AIDC also be Nill.

[YAGAY andSUN]

Under the South Asian Free Trade Area (SAFTA) agreement, goods imported from Bangladesh to India are eligible for customs duty concessions, primarily focusing on the Basic Customs Duty (BCD). Providing a valid SAFTA Certificate of Origin is essential to avail these benefits.

Regarding the Agriculture Infrastructure and Development Cess (AIDC), it is an additional duty imposed on certain goods to fund agricultural infrastructure. While the SAFTA agreement primarily addresses exemptions related to BCD, it does not necessarily extend to other additional duties like AIDC. Therefore, the AIDC applicable to your imported goods may not be exempted under SAFTA provisions.

Recommendation:

• Verify Product Classification: Ensure that your products are correctly classified under HS Code 9403 10 70.
• Consult Customs Authorities: Engage with Indian customs officials or a customs consultant to determine the exact duty structure applicable to your products under SAFTA and any additional cess like AIDC.
• Review SAFTA Provisions: Examine the specific duty exemptions outlined in the SAFTA agreement to confirm eligibility for any additional duty exemptions.

By following these steps, you can accurately assess the customs duties applicable to your imports and ensure compliance with all necessary regulations.

[Imran Ali]

Sorry the correct HS Code Shall be 9403.70.00

[YAGAY andSUN]

Despite of change in HSN Code/Tariff Heading, procedure/process as mentioned above will remain intact/same.

AI Summary

Furniture Imports from Bangladesh: AIDC Exemptions Not Automatically Covered Under SAFTA Despite BCD Benefits The query concerns whether Agriculture Infrastructure and Development Cess (AIDC) exemptions apply to imports from Bangladesh under SAFTA for furniture products. The respondent clarifies that while SAFTA provides Basic Customs Duty (BCD) exemptions when proper certification is provided, it does not automatically extend to other duties like AIDC. The respondent recommends verifying product classification (initially stated as HS Code 94031070, later corrected to 9403.70.00 for plastic furniture), consulting customs authorities, and reviewing specific SAFTA provisions to determine applicable duties. The guidance emphasizes that despite the HS code correction, the same procedural recommendations apply for determining duty structure and exemption eligibility.