Verification Mechanism and monitoring of export obligation under duty exemption
/ reward Schemes reg.
Circular No. 5 /2010-Cus.
F.NO.605/16/2007-DBK (Pt.)
Government of India
Ministry of Finance
Department of Revenue
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New Delhi, the 16th March, 2010.
To,
All Chief Commissioners of Customs/Central Excise/Customs & Central Excise.
All Commissioners of Customs/Customs (P)/Customs &Central Excise/Central
Excise.
All Director Generals of CBEC,
Chief Departmental Representative of Customs Excise & Service Tax Appellate
Tribunal.
*****
Sir/Madam,
Sub: Verification Mechanism and monitoring of export obligation under duty
exemption / reward Schemes reg.
*******
I am directed to invite your attention to the above-mentioned subject and to say
that, several references have been received, requesting the Board to put in
place a verification mechanism in respect of the duty credit scrips issued under
Chapter 3 schemes of the Foreign Trade Policy (FTP) and in respect of the Export
Promotion Schemes viz. Advance Authorization / Duty Free Import Authorization
(DFIA) / Export Promotion Captial Goods (EPCG) schemes.
2. The matter has been examined by the Board in the light of the conditions
specified in the notifications regarding monitoring of export obligation in
respect of Advance Authorization / DFIA / EPCG schemes. Board has also
considered the reports received from the field formations, which indicated
discrepancies found having revenue implications during the verification of the
duty credit scrips, issued under Chapter 3 schemes of FTP. Accordingly, it
has been decided to put in place the following procedures:-
a)
b)
c)
d)
e)
f)
3. The notifications issued
under EPCG / Advance Authorization / DFIA schemes provide that the exporter
should discharge the export obligation within the specified time period or
within such extended period as may be permitted. Further, the notifications
issued under EPCG scheme stipulates that in case of non-fulfillment of
block-wise export obligation, the importer should pay the proportional duty of
unfulfilled portion of export obligation along with specified interest from the
date of clearance of the goods and such payment should be made within 3 months
from the expiry of said block. Monitoring of export obligation is an integral
part of verification mechanism. This would facilitate faster redemption of Bonds
/ Bank Guarantee executed under the above schemes. In view of above, the
Jurisdictional Commissioners of Customs are directed to put suitable systems in
place to initiate timely action in all cases of default.
4. The guidelines issued in the past on the subject shall be
modified to the above extent.
5. These instructions may be brought to the notice of the
trade / exporters by issuing suitable Trade / Public Notices. Suitable
Standing orders/instructions may be issued for the guidance of the assessing
officers. Difficulties faced, if any, in implementation of the Circular
may please be brought to the notice of the Board at an early date.
Receipt of this Circular may kindly be acknowledged.
Yours faithfully,
Sd-
(P.V.K. Rajasekhar)
OSD (Drawback)
Guest
Published in Custom