We are a private limited firm engaged in the import and sale of various goods in India. We have been importing goods into India since 2011 and have been filing various documents, as prescribed, at the time of such import. We have recently been told that we are no longer required to submit a packing list at the time of obtaining customs clearance of the goods. Request you to confirm our understanding.
As per the customs procedures for both import and export, an importer/exporter is required to submit a commercial invoice and packing list along with the customs declaration form viz. Bill of Entry/Shipping Bill.
While the commercial invoice provides the value of the goods, the packing list facilitates examination of goods for ascertaining correctness of duty and quantity. Hence, an importer/exporter would be required to submit the above documents for the purpose of clearance of the consignment from the port. However, the Central Board of Excise and Customs (Board) has recently issued circular, no. 01/2015-CUS, dated 12 January 2015, wherein it has been provided that in case an importer/exporter submits a commercial invoice-cum-packing list, a separate packing list should not be insisted upon if the commercial invoice-cum-packing list contains the following information:
1. Description of goods;
2. Marks and numbers;
3. Quantity;
4. Gross weight;
5. Net weight;
6. Number of packages;
7. Types of packages (such as pallet, box, crates, drums etc.).
However, if the importer/exporter desires to give a separate packing list, the same would also be accepted, as it is being accepted now.
Taxability of services provided by foreign agents
We do occasional third country exports. The local agents in those countries are eligible for a commission on the exports. They place the orders either with us or our principals in the US. If they place the order with us, we place a back-to-back order on our principals in the US for direct shipment to the said importer. We negotiate the documents and realise the payment on exports from the buyer. We pay to the supplier directly. In short, this is a third country export, and the agent’s work (place of provision of service) is restricted to that country. Under the circumstances, are we liable to levy any service tax on the same? To the best of our knowledge, since this is the service rendered in another country, and the service provider is a resident of that country, it does not attract the amended intermediary services clause. Kindly clarify.
Prima facie, such agents located in the foreign country appear to be acting in the capacity of an intermediary, as defined under the Service tax (Place of Provision of Services) Rules 2012. As per the amended Rule 9 (w.e.f October 1, 2014) of the Place of Provision Rules 2012, the place of provision of intermediary services is deemed to be the location of the service provider/intermediary. Accordingly, for services provided by commission agents located in a foreign country, the PPOS would be deemed to be outside the taxable territory and no service tax liability should arise on such services.
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