Page 32 - ELT_1st June 2020_VOL 372_Part 5th

CUSTOMS LAW AMENDMENTS — A
CHALLENGE TO CROSS-BORDER TRADE
By
Debasish Bandyopadhyay, B.Com, LL.B, PGDFM

In this year’s Union Budget, the Hon’ble Finance
Minister has proposed certain changes in Customs laws
which may have profound impact on the core essence of
cross-border trade in the country. While presenting the
budget proposals on indirect taxes, the Hon’ble FM has
said as under :
“It has been observed that imports under Free Trade Agreements (FTAs)
are on the rise. Undue claims of FTA benefits have posed threat to domestic in-
dustry. Such imports require stringent checks. In this context, suitable provi-
sions are being incorporated in the Customs Act. In the coming months we
shall review Rules of Origin requirements, particularly for certain sensi-
tive items, so as ensure that FTAs are aligned to the conscious direction
of our policy.
We are also strengthening provisions relating to safeguard duties which are
applied when surge in imports causes serious injury to domestic industry.
Amended provisions shall enable regulating such surge in imports in a
systematic way. The provisions for checking dumping of goods and im-
ports of subsidized goods are also being strengthened for ensuring a lev-
el playing field for domestic industry. These changes are in line with the
international best practices.”
It is abundantly clear from the above speech that the Government has
been keen to undertake appropriate measures to curb the menace of misuse of
FTA benefits in order to protect the domestic industry. Therefore, certain safe-
guard measures are introduced through the amendments in customs law are,
inter alia, proposed as follows :
 A new Section 28DA is incorporated in the Customs Act, 1962 in or-
der to specifically provide for certain obligations on importer and
( A1562323 )
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