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Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise& Customs
Drawback Division
Circular No. 11/2015 - Customs
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.
- 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 –
- 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
- 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 a
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.
- 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.
F.No. 605/55/2014-DBK
Yours faithfully,
(Sanjay Kumar)
Under Secretary (DBK)
Tele: 23341480
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