Calculation amount- BED, CVD and ADI

[pardeep bisht]

co. x want to import the lubricant in 1 ltr pack ,2ltr pack , 5 ltr pack or 200ltr drum , please clear on what amount BED , CVD and ADI Calculate ,either it calculate on CIF Value or requier the MRP declaration , if we have no MRP that how the procedure

[Mukesh Kumar]

For the purpose of calculation of BCD the CIF value with some additions as per the provisions of customs shall be the base. But, for the purpose of calculation of CVD equal to BED, MRP has to be declared. For more details, please refer to circular no. 32/2001 dated 21-5-2001 customs. If you have no MRP, the customs authorities may not allow the clearance of goods or may confiscate the goods. You may after due permission, declare MRP / RSP on the goods before clearance. Indeed only better proposition is that also the vendor to put the details on the product as per the provisions of Standards of Weights and Measures (Packaged Commodities) Rules, 1977 before loading the goods.

[pardeep bisht]

Dear Mukesh, Thanxs for reply.on import of 200 lts drum is MRP applicable and if we have to trade the same what is to be done relating to excise.

[Mukesh Kumar]

In my view, Standards of Weights and Measures (Packaged Commodities) Rules, 1977 are not applicable to bulk quantity which can be called as industrial supply. If you are importing the lubricant in bulk for the purpose of repacking, labelling, etc before sale, the provisions of MRP would not apply. But, be careful, it is a matter of fact not of the law.

AI Summary

Guidance Sought for Calculating Excise Duties on Lubricant Imports; MRP Crucial for Customs Clearance A company seeks guidance on calculating Basic Excise Duty (BED), Countervailing Duty (CVD), and Additional Duty of Customs (ADI) for importing lubricants in various packaging sizes. The discussion clarifies that BED is based on the CIF value with certain additions, while CVD requires a declared Maximum Retail Price (MRP). Without an MRP, customs may not clear the goods. For bulk imports like 200-liter drums, MRP rules under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, may not apply if the goods are for industrial use or repackaging.