When safeguard duty is imposed? What are the circumstances in which safeguard duty shall not be imposed?
CS Professional · Advanced Tax Laws and Practice · PYQS · June 2021
When safeguard duty is imposed? What are the circumstances in which safeguard duty shall not be imposed?
Answer & Explanation:
Safeguard Duty (Section 8 of Custom Tariff Act, 1975) The Central Government may impose safeguard duty on specified imported goods, if it is satisfied that the goods are being imported in large quantities and they are causing serious injury to domestic industry. The safeguard duty is imposed for the purpose of protecting the interests of any domestic industry in India aiming to make it more competitive. The safeguard duty shall not be imposed in the following cases: Articles originating from developing country, so long as the share of import of that article from that country does not exceed 3% of the total imports of that article into India. Articles originating from more than one developing country, so long as the aggregate of imports from developing countries each with less than 3% import share taken together does not exceed 9% of the total imports of that article into India. Unless specifically made applicable in the notification, the articles imported by a 100% Export Oriented Units (EOU) or units in a Free Trade Zone or Special Economic Zone.
Topics: Customs Tariff Act, 1975
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