Payment of Custom Duty(CD)

This query is : Resolved

Harsh (Querist)
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22 December 2022 Respected Sir/Mam,

I want to know about time limit for "payment of custom duty" after arrival of vessel at port.
I have an idea about Sec 47 of customs act. I also want to know about whether payment of custom duty is impacted by Entry Inward date.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 Under the Customs Act in India, the time limit for payment of customs duty after the arrival of a vessel at the port is generally governed by Section 47. Here are the key points regarding the time limit and its relation to the Entry Inward date:

1. **Time Limit for Payment of Duty:**
- As per Section 47 of the Customs Act, 1962, the duty on imported goods must be paid before the end of the next day following the day (excluding holidays) on which the aircraft or vessel carrying the goods arrives at a customs station.

2. **Entry Inward Date:**
- The "Entry Inward" refers to the date and time recorded in the ship's manifest when it arrives and is inwardly cleared by the customs authorities at the port. This date is crucial as it marks the official arrival of the vessel.

3. **Impact on Payment of Customs Duty:**
- The payment of customs duty is directly related to the Entry Inward date because:
- Duty must be paid by the end of the next day after the vessel's arrival (Entry Inward date).
- Failure to pay duty within this prescribed time may attract penalties or fines under the Customs Act.

4. **Practical Considerations:**
- Customs authorities may provide a grace period or specific guidelines in certain cases, but generally, prompt payment after the Entry Inward date is required to avoid penalties.
- The Entry Inward date is used to determine the exact timeline for duty payment, ensuring compliance with statutory requirements.

5. **Legal Compliance:**
- It's essential for importers and their representatives to closely monitor the Entry Inward date and ensure timely payment of customs duty to comply with legal obligations and avoid any delays or penalties.

In summary, the time limit for payment of customs duty is closely linked to the Entry Inward date of the vessel at the customs station. Section 47 of the Customs Act mandates that duty must be paid by the end of the next day after the vessel's arrival, emphasizing the importance of timely compliance with customs regulations.