Eligibility for duty drawback

775 views 5 replies

Can someone help with my question?

1) We are new exporters.  We have imported certain machinery under EPCG scheme thrice.(Zero duty and 3% concessional duty). Within the period of obligation to export, we have started export and claimed Durty Drawback.  I hear from shipping agent that, as we have imported machinery under EPCG, we are not eligible for Drawback. Is that correct? 

2) Export obligation under one of our imports is USD 21000. Our first container export value is USD 17000 which has been attributed to USD 21000 obligation..  The value next container is again USD 17000.  Can I attribute part value of export, i.e., USD 4000 to first EPCG license and remaining value to next EPCG license?

SHIVA PRAKASH

Replies (5)
1. EPCG and drawback have no connection. you can claim drawback without any doubt

2. Yes you can. Mention both the epcg license numbers in the shipping bill and the respective amounts contributed towards export and this should be informed to clearing agent since he will be filing the shipping bill. It is adviceable to mention the details in export invoice for him to understand generare the shipping bill with correct details

Thanks a lot Mr. Hegde for your time to clarify me.  Just two more questions please.

When I am raising next invoice, when I am attributing invoice amount to  two different EPCG lienses, should I split the invoice amount appropriately into two different quanities in same invoice, (usually in our export, there is one item only), or is it possible to show one total amount in invoice and susequently divide to two different EPCG licences.

During our 3 containers we exported during October, our CFA has mentioned Scheme code as 12.(Zero Duty EPCG)  I understand he should have mentioned scheme code 43(drawback and zero duty EPCG). With this I hear that we cannot get duty draw back.  . Now Customs office says our request  to change the scheme code from 12 to 43 may not be possible. .We can't afford to miss drawback, as we are already in loss.  Please kindly clarify is there any way this can be amended so that we get drawback.

Thanks,

shiva PRAKASH 

 

Once the shipping bill is generared it cannot be amended unless there are genuine mistakes.

Though it is a mistake, the benefit is to be given by the govt, they will not allow you to amend the shipping.

You dont have to split the invoices. Ask your CHA to mention both the epcg numbers in the invoice.

For fulfilment of export obligation through direct exports no need to mention epcg license number in shipping bills. Also you can submit both two licenses in single epcg redemption application using clubbing of licenses.

 

Mr. sadhasivam,

Please do not misguide if you do not know.

Without mentioning license numbers redemption cannot be made. Free shipping bill is not accepted for any purpose in DGFT.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register