All about DUTY INSURANCE : DUTY INSURANCE POLICY PROVISION , The insurance is not assignable.

What is DUTY INSURANCE

This policy/cover is applicable to imports in india only. The sum insured for “Duty” is adjusted on the basis of actual assessed duty. The Policy is one of pure indemnity. The rate of premium for covering duty shall be 75% of the rate applicable for covering the CIF value of cargo itself. Extra, as applicable, will also be charged on 75% basis. War and SRCC rates as applicable will also be on 75% basis subject to such rates not being less than the prevailing inland Transit S.R.C.C. rate.

The “Duty Policy excludes claims in respect of:

(a) Total loss of whole or part of cargo prior to duty becoming payable.

(b) General Average, Salvage and/or Salvage Charges arising from any casualty occuring prior to duty becoming payable.

In ascertaining the amount of claim recoverable credit should be given for any rebates or refund of duty which may become allowable.

The insurance is not assignable.

Claim under insured risks are payable on the basis of actual duty paid or on the basis of the sum insured, whichever is less.

The assured should lodge a claim with the Customs Authorities within the stipulated time (6 months from the date of payment of duty) for refund of duty where admissible and with carriers or others as applicable and any refund obtained should go to reduce the claim under the policy.

The Policy should be issued subject to “Duty Insurance Clause” of Tariff.

DUTY INSURANCE POLICY PROVISION

This policy/cover is applicable to imports in india only.

GENERAL REGULATIONS: The insurance shall be granted only if there exists insurance on CIF value of cargo itself and against the same risks as the basic cargo insurance and only on the basis of a signed proposal form. If cargo is imported on CIF basis because of an unavoidable contractual obligation to insure abroad, insurance on “Increased value” and “Duty may be granted on terms and conditions wider than overseas CIF Insurance.

The insurance should be granted only to the party in whose favour the import licence has been issued/officially endorsed. In respect of imports by state Trading Corporation of India and/or any other government body under their own import licences and allotment is made to various parties on High Seas Sale Basis” such allottees may be considered as actual holders of the license provided an allotment letter or certificate from S.T.C. of India or government body concerned is produced as proof.

No insurance on “Increased Value” or “Duty” shall be granted after arrival of carrying ship at destination port. This however shall not apply where such insurance have been granted under open covers.

“Increased Value” and “Duty” Insurance Policies may also be issued in favour of “Actual Users” who purchase from recognised Export Houses under the Export Promotion Scheme, provided an allotment letter/certificate from a recognised Export House is produced as proof. Alternatively, the Policy issued in favour of the Export House from which the goods have been purchased, & can be assigned in favour of “Actual Users

The cover is subject to all extras (on account of overage, undertonnage, non-classification, etc.) applicable under the cargo policy.

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