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Revolutionizing Customs
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The Carriage of Goods by Sea Bill
A New Era of Transparency and Efficiency with the 2024 GI Rules
Global Trade Commitments and National Law-The Intersection of SCOMET and India's Constitutional Framework
In the contemporary globalized world, export controls are pivotal in ensuring national security while fostering trade. India’s Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) list forms the foundation of its export control regime, especially for dual-use items. The recent A.R. SALES PVT LTD.
Balancing Legal Clarity and Legislative Fairness: The Finance Act, 2024 and the Customs Tariff Act
In the contemporary globalized world, export controls are pivotal in ensuring national security while fostering trade. India’s Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) list forms the foundation of its export control regime, especially for dual-use items. The recent A.R. SALES PVT LTD. VERSUS UNION OF INDIA & ORS. – 2024 (8) TMI 729 – DELHI HIGH COURT. provides an important lens into interpreting and applying these controls in the Indian context, specifically concerning the Catch-All provisions that India incorporated as part of its international commitments under the Wassenaar Arrangement.
A New Era of Transparency and Efficiency with the 2024 GI Rules
The significance of Geographical Indications (Gls) in international trade has grown exponentially in recent years. Gls not only protect the unique characteristics of region-specific goods but also play a pivotal role in preserving the heritage, reputation, and economic value of these products. From Darjeeling Tea to Kanjeevaram Silk, Gls are a beacon of quality and authenticity.
With the introduction of the Geographical Indications of Goods (Holding Inquiry and Appeal) Rules, 2024, the landscape of GI protection and enforcement in India has been drastically improved. These new rules, notified on August 16, 2024, by the Ministry of Commerce and Industry, are a game-changer for businesses, artisans, and traders who rely on the integrity of Gls to distinguish their products in a globalized market.
Balancing Legal Clarity and Legislative Fairness: The Finance Act, 2024 and the Customs Tariff Act
In a landmark move, the Indian government introduced the Carriage of Goods by Sea Bill, 2024, in the Lok Sabha on August 9, 2024. This bill is set to replace the Indian Carriage of Goods by Sea Act, of 1925, which has governed the transportation of goods by sea in India for nearly a century. The new bill aims to align India’s maritime laws with international conventions like the Hague-Visby Rules, modernizing the framework to meet the demands of today’s global trade environment.
Revolutionizing Customs: How ICETABs are Transforming Trade Facilitation in India
The world of international trade is evolving rapidly, and India is no exception. With the government’s commitment to enhancing trade facilitation, transparency, and efficiency, the Central Board of Indirect Taxes & Customs has introduced a significant initiative: the use of ICETABS to streamline the customs examination and clearance process.
As outlined in Circular No. 10/2024-Customs, issued by the Ministry of Finance on August 20, 2024, ICETABS-mobile tablets-represent a crucial step toward simplifying procedures, reducing paperwork, and adopting best global practices. This initiative will bring faster processing times, greater transparency, and improved communication across stakeholders in India’s bustling trade environment.
Export Strategies for Indian Businesses: Adapting to Global Trade Challenges
In March 2018, the USA held consultations with the Government of India under Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) and Articles 4 and 30 of the Agreement on Subsidies and Countervailing Measures (SCM) about certain export promotion schemes administered by Government of India.
Navigating the Complex Waters of Harmonized System Classification: A Tale of Auto Components and Legal Precedents
In the intricate world of international trade, the process of classifying goods under the HSN in India has unfolded like a strategic game between importers and customs authorities, especially notable in the automobile sector. The landscape of auto component classification, marked by its propensity for higher customs duties, has consistently been a focal point for the Revenue’s scrutiny. The plot thickened with the implementation of the GST on July 1, 2017, setting the GST rate for auto components at a steep 28%.
Unexpectedly, a past Supreme Court verdict from July 2003 concerning G.S Auto International [2003 (1) TMI 700 – SUPREME COURT, which ratified the classification of various vehicle fasteners under heading 8708 using the ‘sole and primary use’ criterion, resurfaced. Despite the court’s clear stance, which contradicted the Revenue’s opposing view-a stance that had remained dormant for more than a decade this decision suddenly found new relevance.
Even the king of fruits isn’t immune to the might of trade compliance. In a costly episode this May, 15 consignments of Indian mangoes were rejected and destroyed by U.S. Customs and Border Protection (CBP) over documentation issues related to mandatory irradiation. The total financial loss: $500,000.
While the treatment itself had been carried out at a USDA-approved facility in Navi Mumbai, discrepancies in the USDA’s PPQ203 certification led to the consignments being denied entry at major U.S. airports, including Los Angeles, San Francisco, and Atlanta. Exporters were left stunned, as they had followed all protocol under USDA and Indian customs oversight.
This isn’t just a clerical error; it’s a reminder of the fine line between compliance and diplomatic leverage in international trade. The India & U.S. agricultural trade relationship has often been punctuated by similar episodes.
How the Carriage of Goods by Sea Bill, 2024, is Set to Transform India's Maritime Trade
Carrier responsibility standards strengthened under new maritime law, aligning domestic rules with international conventions and altering bills of lading transfer.
The Carriage of Goods by Sea Bill, 2024 modernises maritime carriage law by replacing the 1925 Act, aligning domestic rules with international conventions, strengthening carrier responsibilities for seaworthiness and cargo care, and granting the central government powers to issue directions and amend provisions. It works with a separate Bills of Lading Bill to clarify transfer of rights and liabilities under bills of lading, promising greater legal certainty for international trade while posing transitional compliance and contractual adjustment challenges for the trade sector.
INDIA’s courts are in the middle of a quiet revolution. e-Courts Phase III, virtual hearings, and AI-assisted tools like SUPACE [Supreme Court Portal for Assistance in Court’s Efficiency] are shifting how justice is delivered, from physical courtrooms to digital platforms accessible through a smartphone. The promise is real: faster proceedings, reduced costs, and courts reachable by citizens who once had neither the time nor the means to use them. But the risks are equally real: algorithms that embed historical bias, data systems that expose vulnerable litigants to breach, and an over-reliance on technology that risks eroding the human judgment at the heart of adjudication. This article argues that India’s digital judiciary must be anchored in constitutional principle, with code as an enabler of justice, not a substitute for it.
Has the Madras High Court Drawn the Final Line? (Published on Tax TMI)
Advance rulings jurisdiction curtailed, creating uncertainty for tariff classification and valuation appeals under the customs framework.
Conflict between Section 28KA and Section 130E(b) has created uncertainty over whether High Courts may fully review advance rulings on tariff classification, valuation and origin. Judicial divergence-one approach permitting broad appellate review under 28KA, another restricting review by deferring classification and valuation issues to the appellate route under 130E(b)-undermines Chapter V B’s goal of binding, timely pre import certainty and raises practical barriers for traders who depend on predictable customs treatment.
TEPA introduces flexible Rules of Origin: multiple proof routes, diagonal cumulation, permissive transit, and fixed verification timelines.
TEPA’s Rules of Origin create a flexible framework allowing four co existing proof mechanisms, diagonal cumulation with EFTA states and India, acceptance of third party invoicing where non manipulation is shown, permissive transit/warehousing through non parties with simple evidence, inventory accounting in lieu of physical segregation for fungible materials, product specific “melt and pour” requirements for steel, optional FOB valuation with a 5% VNM adjustment, and time bound verification SLAs with denial and appeal processes.
Customs Provisional Assessments, 2025: A Time-Bound Regime Bringing Predictability for Trade (Published on Tax TMI)
Time-bound provisional assessment regime: mandatory finalisation within fixed term increases predictability and reduces disputes for trade.
CBIC’s 2025 regulations convert provisional assessments into a structured, time-bound process with a two-year cap (plus a possible recorded one-year extension), detailed timelines for notifications, submissions, and enquiries, a three-month core finalisation window, and reset rules for legacy cases from March 29, 2025. The regime governs voluntary payments, interest treatment, refunds, bond and security closures, and recovery mechanisms, requires speaking orders where final assessments vary from provisional ones, and mandates written explanations when exceptions suspend timelines.
Authorized Economic Operator expansion for MSMEs streamlines customs benefits while strengthening environmental and integrity requirements across supply chains.
FoS 2025 requires customs and traders to coordinate environmental compliance and risk management, expands tailored Authorized Economic Operator (AEO) access for MSMEs with simplified procedures and expedited benefits, and mandates an institutionalised ethics and integrity framework alongside measures to counter insider threats, increasing short term compliance costs while aiming to strengthen long term supply chain trust, market access and sustainable trade facilitation.
The Tale of Hikal Limited and the Vanishing INDIA GST Tax Rule 96(10) (Published on Tax TMI)
Rule 96(10) repeal ends ongoing proceedings under the rule, restoring exporters’ eligibility for IGST refunds.
The repeal of Rule 96(10) removes its operative force and, absent an express savings clause in the repeal notification, pending show cause notices, adjudications and appeals founded solely on that rule cease; finally concluded matters remain unaffected, and general saving provisions applicable to primary legislation do not revive proceedings based on a delegated rule.
Doctrine Against Retrospective Taxation blocks retrospective IGST on re imported aircraft parts and preserves input tax credit position.
The Supreme Court dismissed the revenue’s appeal, holding that IGST could not be imposed retrospectively via a 2021 notification where the 2017 customs notification did not clearly include IGST. The Court applied the Doctrine Against Retrospective Taxation, ruled ambiguities must be construed in favour of the taxpayer, and identified the practical risk that retrospective IGST levies on re imported aircraft parts would disrupt Input Tax Credit entitlement and create valuation mismatches between customs and GST treatments.
Rethinking Royalty in Customs Valuation - Lessons from the Owens Corning CESTAT Ruling (Published on Tax TMI)
Royalty relatedness principle: post manufacture royalties tied to domestic sales are not added to customs transaction value absent contractual nexus.
Whether running royalties on net domestic sales must be added to the customs transaction value depends on two cumulative requirements: the payment must be related to the imported goods and must be a condition of sale of those goods. A royalty based on post manufacture sales that is not contractually tied to importation or to purchasing specific imported inputs is a fee for technology access and does not satisfy the necessary nexus for addition to transaction value.
Mode of Export of Services reporting now required on eBRCs to align services trade data with international standards and policy use.
DGFT requires exporters to self-declare the Mode of Export of Services (Mode 1/2/3/4) on eBRCs to align India’s services trade reporting with GATS definitions, supported by domestic foreign trade and FEMA regulations; the operational mechanism and guidance are issued via DGFT notifications and eBRC user manuals, with the objective of producing granular mode-wise data for FTA negotiation leverage, targeted policy incentives, and streamlined compliance.
Post-Export Conversion of Shipping Bills Gets a Digital and Legal Overhaul (Published on Tax TMI)
Post-export conversion of shipping bills now permits digital switching to instrument-based export schemes with coordinated approvals.
A statutory and digital framework now permits post-export conversion of incentive-linked shipping bills from drawback to instrument-based schemes, grounded in amendments to Section 149 and enacted by CBIC regulations and a circular. The mechanism covers shipping, postal and baggage exports when incentives are claimed, requires reversal of original benefits to avoid double recovery, prescribes timelines with extension routes and approval levels for specific amendments, and mandates online filing and processing via ICEGATE/EDI with automated data sharing and a Post EGM Module for manifest updates.
Proof of Origin requirement strengthens origin verification, exposing importers to broader documentation demands and possible duty denial.
The amendment to Section 28DA replaces Certificate of Origin with Proof of Origin, allowing Customs to demand invoices, production records, cost sheets and other supporting documents beyond a certificate to verify FTA origin claims. The evidential burden shifts to importers: a certificate alone no longer conclusively establishes entitlement to preferential duty; failure to provide satisfactory supporting documentation can lead to denial of preferential rates, full duty assessment and penalties. Importers must secure detailed supplier documentation and be prepared for heightened Customs scrutiny and potential delays.
India's Stand on WTO High Seas Fishing Decision and Its Impact on Fishermen (Published on Tax TMI)
Fishing subsidies reform: India urges moratorium and conditional approval to protect coastal fishers and sustainable fisheries.
India opposes WTO subsidy rules that would limit developing-country fishers while preserving advantages for historically subsidised distant-water fleets. It proposes a moratorium on new distant-water subsidies and prior WTO approval for high-seas subsidies. Domestically, India advances legal measures to police its Exclusive Economic Zone, modernize fisheries infrastructure, provide targeted vessel support and group insurance, and promote aquaculture and value-chain investments to comply with international subsidy constraints while protecting coastal fishing livelihoods.
Cumulation in Rules of Origin enables combined sourcing across partners to preserve preferential trade access and reduce costs.
Cumulation under Rules of Origin permits inputs and processing in partner territories to be treated cumulatively so final goods retain eligibility for preferential treatment under FTAs. It operates as bilateral, diagonal, or full cumulation, each with specific origin criteria and documentary requirements. Proper use of cumulation can lower costs, broaden sourcing options, and expand preferential-market access for exporters, but requires robust origin certification, traceability and alignment of RoO to address administrative and verification challenges.
Decoding the Popcorn Puzzle: Analyzing Classification Inconsistencies Under GST (Published on Tax TMI)
Classification of popcorn: GST recommendations risk reclassifying cereal popcorn despite essential-character tariff principles.
GST recommendations treat salted/spiced popcorn as Namkeen under CTH 21069099 and caramel popcorn as sugar confectionery under CTH 1704, yet HSN Explanatory Notes and the First Schedule classification principles indicate that cereal preparations obtained by swelling or roasting that retain their essential cereal character-even when seasoned or lightly sugar-coated-remain within heading 1904, excluding only products where sugar is present in proportions that give the product the character of sugar confectionery.
Proper officer authority affirmed – DRI officers can issue reassessment notices and initiate investigation reports under customs law.
The Review Bench held that DRI officers are statutory customs officers and need no separate Section 6 notification to act; because post-amendment Section 17 established importer self-assessment, subsequent customs action constitutes reassessment, which may be undertaken by appropriate customs officers including DRI within their recognised role, and DRI may issue notices under Section 28 while investigation reports under Section 110AA must feed into proper officer adjudication.
EU’s Deforestation-Free Regulation challenges, Global Impact, and Opportunities through Trade Agreements like IND-UAE CEPA (Published on Tax TMI)
Deforestation-free regulation spurs supply-chain due diligence and FTAs to assist SMEs with compliance and market access.
Regulation (EU) 2023/115 mandates due diligence and plot level traceability for specified commodities to prevent market placement of goods linked to deforestation. The phased implementation and proposed deadline extensions aim to allow firms-and particularly SMEs-to build verification systems and supply chain controls. The measure pressures developing country producers to strengthen land registries, enforcement and certification capacity but also incentivises sustainable practices and green investment. Free Trade Agreements, exemplified by IND UAE CEPA, can facilitate compliance through joint assistance mechanisms, processing in trade zones, mutual recognition of standards, and technical support to preserve EU market access.
Catch-all export controls: require concrete evidence of diversion risk before restricting civil-certified dual-use exports to balance trade and security.
The Catch-All control in India’s SCOMET framework permits regulation of exports not explicitly listed when there is a credible risk of diversion to military or WMD uses, implementing obligations under the Wassenaar Arrangement and Section 14C of the Foreign Trade Act. Application of this control must rest on concrete evidence and rational decision making-considering civil certification, end user documentation, and objective diversion indicators-and should balance national security with legitimate commercial interests, necessitating clearer administrative guidance on evidentiary thresholds and proportionality.