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Regarding Conversion of Free <a href='http://www.eximguru.com/exim/indian-customs/customs-regulations/shipping-bill-and-bill-of-export-form-regulations-1991.aspx'>Shipping Bill</a>s into Advance License/ DEPB/
DFRC/ Drawback Shipping Bills and Conversion of Shipping Bills from One Export
Promotion Scheme to Another
Customs
Circular No. 6 dated 28th January 2003
In
terms of Para 2.56 of Handbook of Procedure, Vol. 1 of 2002-2007 Exim policy, in
cases where the exporter is denied benefit of one export promotion scheme by
Customs or DGFT, he is permitted to avail benefit of another export promotion
scheme provided otherwise he is entitled to the benefit of such scheme, DOR has
issued couple of Circulars in the past in terms of which conversion of free
shipping bill into drawback shipping bill or Advance License shipping bill into
old Pass Book shipping bill etc. is permitted subject to fulfilment of specified
conditions.
2.
With effect from 1.4.97, DEPB Scheme came into operation. Similarly with
effect from 1.4.2000 DFRC Scheme was brought into operation. On account of non
issue of instructions permitting conversion of shipping bill into DFRC/ DEPB
shipping bill, each and every case containing request for such conversion is
being referred to the Ministry for taking a final decision, DOR has also come
across cases where the exporters were not allowed to file shipping bill under a
particular export promotion scheme (Advance License/ DFRC/ DEPB) and as a result
the exporter had to export his goods against free shipping bill. In such cases
also the exporters later on come up with a request to permit conversion from
free shipping bill into shipping bill under one of the export promotion schemes
or Drawback shipping bill to enable him to avail benefit of that export
promotion scheme or Drawback respectively.
3.
The issue has been examined in Board. Export Promotion Schemes viz
Advance License/ DFRC/ DEPB/ Drawback are in operation so that the exporter can
avail its benefit.
Therefore,
in cases where the exporter wanted to avail benefit of a particular export
promotion scheme but he was forced to file a free shipping bill by Customs or in
cases where benefit of an export promotion scheme was denied to the exporter by
Customs or DGFT, in all such cases conversion of shipping bill may be allowed,
subject to the condition laid down below.
4.
It is, therefore, clarified that in the following types of cases
conversion of shipping bill may be allowed:
i)
Where the exporter wanted to avail benefit of an export promotion scheme
(including Drawback) but he was forced to file free shipping bill.
ii)
Where an exporter had filed shipping bill under a particular export
promotion scheme but benefit of that scheme was denied to him by DGFT on
Customs.
Conversion
in the aforesaid types of cases may be allowed by the Commissioner on
case-to-case basis subject to the following conditions;
a)
On the basis of available export documents etc, the fact of use of input
is satisfactory proved in the resultant export product for purpose of allowing
conversion into Advance Licence/ DFRC/ DEPB/ Drawback Schemes.
b)
The examination report and other endorsement made on the shipping bill/
export documents prove the fact of export of the export product and export
product is clearly covered under relevant SION and DEPB Schedule as the case may
be.
c)
On the basis of S/ Bill/ export documents the exporter is fulfilling all
conditions of the said Scheme & is eligible for its benefit.
5.
Suitable Public Notice for the guidance of trade and Standing Orders for
the Guidance of held officers may be issued.
6.
Receipt of this Circular may kindly be acknowledged.
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