Exemption of Customs Duty and Excise Duty

[Syed Ibrahim]

Sir,

We wish to inform that TWAD board requires HDPE pipe using PE 100 resin which is to be imported from foreign, for executing a water supply project with the International  loan assistance from JICA. The project is being implemented through a contractor for which the contract was awarded to him under ICB bidding process.We agree to issue Project Authoriyu Certificate (PAC) in appendix 27 under paragraphs 4.1.3 and 8.2.4 of FTP,  for the tax exemption.

In the PAC under quantity column we want to indicate our requirement of pipes both in lenth in 'm' and weight in 'MT' soas to inform the quantity of resin to be imported . But the manufacturer/Vendor is objecting for weight in 'MT'. He wants the quantity in 'm' only.

Please guide us the correct way of submitting the PAC.

Syed Abbas Ibrahim

Deputy Chief Engineer, TWAD Board, Chennai.

[Mahir S]

There is no reason why the manufacturere is objecting for weight in MT, maybe as the gross weight might increase/decrease due to Moisture/Rust or for any other reason.

As the details of quantity  and  description  are required to be shown in the PAC certificate, the quantity may be shown in Length  (in "m')  and in the Description Column the Breadth/Size/Quality/Thickness of the said HDPE Pipes may be inserted, so that even if the weight in MT is not shown, the same can be calculated based on the details shown in the Description column.

[PRASANTA KHATAI]

Our company has obtained PAC from one of the U.P.Govt Authority for availing customs duty exemptions for a project under JICA & ICB.The case seems to be similar to that of yours.You need to ensure that the unit mentioned in the foreign supplier's invoice should match with the PAC so that smooth clearance of the goods from the customs authority can be facilitated.


As regards Meter vis-a-vis Weight , it can be decided on the basis of the BOQ issued by the customer in the purchase order and also the unit of supplies ordered to the foreign supplier.

Hope , this can be resolved amicably on the above ground ,

The undersigned can be contacted over phone at 9818830315

Thanks, Prasanta Khatai,New Delhi

 

AI Summary

Customs duty exemption: state PAC quantity consistently with supplier invoice and BOQ and include specifications to enable weight calculation. The PAC for customs duty exemption should state HDPE pipe quantity in length (metres) and include detailed specifications (size, breadth, wall thickness, quality) in the description so weight can be calculated if required. Ensure the foreign supplier's invoice uses the same unit of measure as the PAC; the controlling unit (metre or weight) should follow the BOQ or purchase order to facilitate smooth customs clearance.