Only Standard
Unit Quantity Code as per CTA 1975 in Bills of Entry/Shipping Bills, Says CBEC
[CBEC Circular No. 26 dated
19th July 2013]
[We suggest units used in International Practice and
the invoice may also be put in the documents. Trade will come to a stop
otherwise. Buyer may want quantity in dozens but CTA asks for weight or nos.
Thus we will be landed with a custom made barrier!
In many cases, the unit may be wrong. Thus printed
circuits in 8534 are sold in pieces or length in metres
but the CTA heading asks for weight in kg. The customs inspector will reject
all documents where quantity other than kg. is indicated.
A sure recipe for hike transaction costs in customs clearance!!! – Ed.]
Subject: Standard Unit
Quantity Code (UQC).
The issue of poor quality
of trade data has been engaging the attention of the Government. Further, an
analysis of National Import Data Base (NIDB) reveals that there are at times variations between the lowest
and highest unit values of the same item, which might escape detection on
account of the use of different unit codes.
2. The matter has been carefully
examined with the objective of improving data quality both from the view point
of generating error free trade statistics as well as providing usable
contemporary reference values to the assessing officers. The Board notes that
Standard Unit Quantity Codes (UQC)
indicated in the Customs Tariff Act, 1975 are not being uniformly declared by
importers and exporters for the same items across different Customs locations.
This impacts data quality and makes comparisons and aggregations difficult. The
use of non-uniform UQCs for the same item also vitiates the quality of the NIDB
data and reduces its utility to the assessing officers, who are unable to
ascertain the contemporaneous values or assessment practice of a given item in
different Customs locations. Therefore, the solution lies in improving the
quality of data by using standard UQCs.
3. In this regard, it is seen that
the Customs Tariff Act, 1975 prescribes only a single Unit Quantity Code (UQC)
against each Tariff Item, and it is the requirement of the law that the same is
properly declared by importers/exporters/Customs Brokers in the Bills of
Entry/Shipping Bills. It is the view that the correct declaration of the UQC,
as indicated in the Customs Tariff Act, 1975 would resolve the aforementioned
difficulties. Accordingly, it is directed by the Board that Customs field
formations should ensure that only the correct and prescribed Standard UQC as
per the Customs Tariff Act, 1975 is mentioned in Bills of Entry/ Shipping
Bills.
4. Board desires the Chief
Commissioners of Customs to ensure that instructions as aforementioned are
complied with scrupulously. There should, however, be an endeavour
that the exercise does not result in delays in clearance of cargo. The
Directorate of Valuation shall monitor the correct use of UQCs and DG (System)
shall modify the software applications suitably to give effect to mandatory
compliance of correct UQC.
5. Difficulty faced, if any, in
implementation of aforementioned instructions may be brought to the notice of
the Board.
F. No. 450/180/2009- Cus. IV