FFFAI hosts a webinar to better understand the impacts of Budget 2022 on Customs & Logistics Business

Post By : Karvi Rana
Post Date : February 21, 2022
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A day after the Union Finance Minister announced the Union Budget 2022-23, the Federation of Freight Forwarders’ Associations in India organized a webinar intending to understand the implications of various changes and amendments in the existing Customs Notifications and Tariff/Duty structure announced in the budget.

The webinar was addressed by eminent Advocate Consultant and also Mentor on Legal matter, empanelled with FFFAI, Mr. Joshua Ebenezer provided a detailed analysis of the changes/amendments made in the Budget 2022 concerning Customs clearance and tariff.

Attended by approx.. 200 FFFAI members from across the nation, the webinar was also addressed by Mr. Shankar Shinde, Chairman; Mr. Dushyant Mulani, Chairman-Elect; Mr. AV Vijayakumar, Immediate Past Chairman; Mr. S. Ramakrishna, Past Chairman & Advisor, and other office-bearers of FFFAI.

For a better understanding by the participants, Mr. Ebenezer analyzed the changes and amendments very eloquently and simply with relevant examples. He made caution about the ambiguities due to self-contradictions between different amendments, which according to him, requires further clarifications from the Customs authority.

Mr. Shankar Shinde thanked all FFFAI Office Bearers, Advisors, and members for their participation in the webinar, appreciated FFFAI members for providing inputs before the Budgeted 2022, which were discussed with the CBIC, Ministry of Finance as pre-Budget discussions. According to the FFFAI Chairman, many of them have been addressed in this Budget and FFFAI would continue the dialogue with the government for further facilitation of Customs clearance as well as foreign trade.

Giving deep insights about the budget, Mr. Ebenezer especially drew the attention of the participants towards the following points and their importance/implications to customs broking/logistics business:

  • In the Budget 2022 three hundred and fifty exemptions have been withdrawn
  • No new exemptions announced
  • Road map for next 25 years announced with a broad vision
  • New items added to First Schedule of CTA 1975 with effect from May 1, 2022
  • How Unconditional exemptions moved to First Schedule
  • How conditional exemptions are treated
  • Changes in Tariff Value-Section 14(2), which empowers Govt. to fix tariff values for any class of goods
  • Further clarifications and notifications required on Tariff Value
  • Amendment in Advance Ruling-Section 28E, 28H, 28I, 28J
  • Amendment in Section 135A-imposing fine for publishing Customs data
  • Amendment in section 24-4A regarding the validity of Notifications
  • Amendments regarding Basic Customs Duty rate on Project Import
  • Extension of Phased Manufacturing Programme
  • New tariff heading/items and anomalies due to technical changes of items
  • Social Welfare Surcharge, which is still unresolved
  • Changes in explanation of Proper Officers and their power. As per Section 2, (34) Proper Officer is now linked with Section (5) powers of officers of Customs
  • At the same time Section 110AA introduced regarding definition and power of Proper Officer, which is contradicting Section 2 (34)
  • Change in electric vehicle components import and duty structure

The webinar saw keen interest from the participants and considerable interactions. Mr. Vinod Sharma, Secretary, FFFAI concluded the webinar with a vote of thanks to the speakers, OBs, and all participants for making it very lively and purposeful.

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