In an try and ease the container scarcity being felt by exporters, the federal government on Saturday introduced a three-month extension for re-export of containers with out attracting import responsibility to forestall export of empty containers. Ordinarily, containers saved within the nation past six months are topic to import responsibility to advertise quicker turnaround. However, the rule was seen as an incentive for the export of empty containers to keep away from the responsibility at the same time as Indian exporters take care of excessive freight charges and delays as a result of low availability of empty containers.
“As a temporary measure to improve containers available presently for export of containerised cargo and with the aim of promoting export of laden marine containers, the CBIC (Central Board of Indirect Taxes and Customs) has issued a guidance to field offices to extend this period by 3 months,” a authorities launch stated. The exemption is on the market in instances the place the expiry of the preliminary six-month interval is on or earlier than March 31, 2022 and the containers are re-exported in a laden situation.
The launch famous that the prevailing coverage was creating “a perverse incentive among shipping lines to export empty containers to evade duty payment on containers which are lying empty.”
Exporters had approached the Centre to limit outward cargo of empty containers from Indian ports, with empty containers fetching a premium within the world market as exporters world wide take care of the scarcity.
