Page 32 - ELT_1st August 2020_Vol 373_Part 3

A70 EXCISE LAW TIMES [ Vol. 373

Existing Customs Laws and Procedures
Trade, Industry and other stakeholders’ active participation by the way
of providing suitable suggestions will be helpful in drawing a detailed roadmap
for a ‘Modern Customs Law’ which can be implemented in a phased or in one
shot but in a time-bound manner. The Central Government’s urgent attention
has been sought on the following issues -
(1) Harmonizing the Customs Valuation and Transfer Pricing Guide-
lines.
(2) Revamping of the Inverted Duty Structure.
(3) Further reduction or increase in Basic Customs Duty to incentivize
‘Make in India’.
(4) Removing or Reducing the Cess on Customs Duty, if possible.
(5) Overhauling of the Cenvat Credit Mechanism.
(6) Reducing the time-limit or strict timeframe for refunding of the
Customs Duties.
(7) Implementation of running account concept for payment of export
and import duties with set-off mechanism.
(8) Overhaul of Customs Rules, particularly, Baggage and Drawback
Rules.
(9) Administrative Reforms by adopting new technologies such as Arti-
ficial Intelligence and Data Analytics to check Duty Evasions.
(10) Improving the efficiency in ‘Customs and Border Management –
CBM’ to check illicit international trade prevailing across the bor-
der.
(11) Adoption of Revised Draft of Schedule-2 of ITC (HS) Export Policy
2019.
(12) Plugging undue claims under ‘Free Trade Agreements – FTA’ or
other such international trade arrangements.
Customs & Authority for Advance Ruling - AAR
Advance Ruling means the determination of a question of law or ques-
tion of fact regarding the liability to pay duty or tax in relation to an activity that
is proposed to be undertaken, by the applicant. In other words, Advance Ruling
is a ruling to determine in advance the tax liability in respect of a proposed eco-
nomic or business activity. As far as this article is concerned, the activity relates
to import or export under the Customs Act. Post globalization and in its first at-
tempt, the Central Government vide Finance Act, 1999, a scheme of Advance
Rulings (Central Excise, Customs & Service Tax) has been incorporated in the
Customs Act, 1962, the Central Excise Act, 1944 and the Finance Act, 1994 by the
Finance Acts of 1999 to provide for the issuance of binding rulings, in advance,
on Customs, Central Excise and by the Finance Act, 2003; the same concept was
introduced for Service Tax matters. In general, the scheme is intended to provide
certainty and clarity to intending investors. However, the Authority became
functional only in the financial year 2002-03. Advance Ruling either under Cus-
toms, Income Tax, or GST laws will play a key role in gaining foreign investors’
confidence, draw the much-needed foreign direct investments and advanced
technologies into the country. The Union Budget for 2018-19 has proposed to

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