Calculate Export
Duty in Iron Ore using Wet Metric Tonne after
Deducting for Moisture Content
[CBEC Circular No. 04 dated 17th February
2012]
Subject:
Adoption of uniform Customs Procedure for calculating the contents of Iron Ore
– clarification.
Several references have been received in the Board
highlighting divergent practices for calculation of iron contents from Iron Ore being
followed at different Ports for charging Export duty. In this regard two types
of calculation methods are being followed i.e. on the basis of Wet Metric Ton
(WMT) and other on the basis of Dry Metric Ton (DMT).
2. Hon’ble Supreme
Court in the matter of Civil Appeal No. 7539 of 1995 in case of Union of India Vs Gangadhar Narsingdas
Aggarwal [1997(89) ELT 19(SC)] in order to arrive at
the Iron (Fe) contents out of Iron Ore, had held that-
‘that is
because the duty is relatable to weight and therefore, once the iron content is
determined keeping in mind the total weight, the percentage can be determined
separating the iron contents from the rest of the impurities inclusive of
moisture and thereafter ascertain in which category the lumpy iron would fall
for the purpose of charging duty….’
3. In light of the observation by the Apex Court
that export duty is chargeable according to Fe contents, and to maintain
uniformity all over the custom houses, it is clarified that for the purpose of
charging of export duty the assessment of Iron ore for determination of Fe
contents shall be made on Wet Metric Ton (WMT) basis which in other words mean
deducting the weight of impurities (inclusive of moisture) out of the total
weight/Gross Weight to arrive at Net Fe contents.
4. In case of any difficulty in arriving at the
net Fe content, assessment may be based on test result which directly
determines the Fe contents.
5. Pending assessments on the issue, if any, should
be finalized accordingly.
6. Difficulties, if any, faced in the
implementation of this circular, may be immediately brought to the notice of
the Board.
F. No. 450/93/2011-Cus.IV