Circular
No. 11/2015 –
Customs
F.No.
605/55/2014-DBK
Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise& Customs
Drawback Division
New Delhi, dated 1st
April, 2015
To
All Principal Chief Commissioners/Chief Commissioners of Customs /
Customs (Prev)/ Central Excise &
Customs,
All Principal Directors General/Directors General of CBEC / Chief
Commissioner (AR), CESTAT,
All Principal Commissioners/Commissioners under CBEC
Ma’am/Sir,
Subject : Facility for
suo moto payment of
customs duty in case of bona fide default
in export obligation under the Advance / EPCG authorisations – reg.
The Ministry has
considered the issue of increased interest cost for authorization holders (AH)
who come forward to the Regional Authority (RA) of DGFT for regularization of
their cases of bona fide default in
export obligation (EO) under the Advance Authorization or EPCG Schemes but have
to wait for the detailed calculations in this regard before being able to
deposit the duty involved. It was decided to provide for a procedure that would
enable quicker payment thereby reducing the avoidable interest cost for such
exporters.
2. After consulting the
DGFT, and certain field formations, the Board prescribes the following facilitation
procedure –
(a) This procedure may be adopted by an AH who has
obtained acknowledgement from the concerned RA of its application for
regularization of bona fide default in EO. The application must show, inter
alia, the AH’s own/self-calculation of the duty payable for the default in EO
and interest thereon.
(b) During
pendency of the detailed calculations by the RA, such an AH may –
(i) Deposit, in cash, the own/self-calculated duty amount, along
with interest in cash by challan (showing relevant particulars) in the
designated bank at the port where the authorization is registered. One copy of
the paid challan shall be submitted to the Customs Authority at the said port
which shall update its records; and/or
(ii) produce valid duty credit scrip before the Customs Authority at the
port where the authorization is registered for debit of the own/self-calculated
duty amount. Such scrip should be one issued under Chapter 3 (excluding SHIS, SFIS and AIIS scrips) in terms of FTP (2009-14) or chapter 3 of FTP
(2015-20) or be Post-export EPCG duty remission scheme scrip. The debit shall only be in
respect of goods that are permitted to be imported under the relevant scrip.
The Customs Authority shall reflect the debit in Customs records and also
suitably endorse it on the scrip. However, the AH shall pay the interest in
cash in the designated bank at the port where
the authorization is registered. One copy of the paid challan shall be
submitted to the Customs Authority at the said port which shall update its
records.
(c) On
receipt of the excess import letter issued by RA after its detailed
calculations (indicating inter alia the reported duty deposited/debited and
interest paid on self/own calculation basis, if any), the Customs would confirm
the actual amount of duty payable for the default in EO and interest thereon
and, taking into account the actual deposits/debits already made, would
indicate the balance duty etc., if any. The AH shall pay these by the above
modes and the Customs Authority shall endorse all the paid challan(s).
(d) On
receipt of the redemption letter (indicating, inter alia, details of payments
including amount and mode) from RA, the Customs Authority shall reconcile and
initiate the prescribed actions for releasing the Bond / BG.
3. This facilitation procedure may be put in
place and publicized through suitable Trade/ Public Notice and officers guided
through Standing Order. Difficulties faced, if any, in implementation of the
circular may be brought to the notice of the Board.
Yours faithfully,
(Sanjay Kumar)
Under Secretary (DBK)
Tele: 23341480
