OFFICE OF THE COMMISSIONER OF
CUSTOMS (EXPORT),
JAWAHARLAL NEHRU CUSTOM HOUSE,
SHEVA,
TAL - URAN, DIST-RAIGAD,
File
No.- S/16-DEEC-GEN-1520/09/VII D Date :
PUBLIC NOTICE NO. 78/ 2009
Subject :-Procedure
for Registration and Monitoring of DEEC/ADVANCE AUTHORISATION SCHEME- Reg
1.0 Attention
of all the Importers/Exporters/CHAs and DEEC
Linence-holders and all concerned is invited to the notification numbers 91/04-Cus dated 10.9.2004 (Advance
Authorization for deemed Exports), 93/04-Cus dated 10.9.2004 (normal Advance
Authorization scheme) and 94/04-Cus dated 10.9.2004 (Advance Authorization for
Annual requirement). Notification Nos. 96/2009-Cus and 99/2009-Cus both dated
11.9.2009 and 112/09-Cus dated 29.9.09 which have been issued to operationalize
the Advance Authorization, Advance Authorization for Annual requirement and
Advance Authorization for deemed export schemes respectively under the new Policy and Board’s Circular
Nos.24/2002 dated 06/-05/2002, 58/2004 dated 21/10/2004 ,17/2009-cus dated
25/5/2009 and Circular
No. 26 /2009-Cus. dated
2.0 Part- I Procedures for Registration of Advance
Authorisation.
2.1 The
licence-holder or their representative has to get ‘NO ALERT’ and ‘BULLETIN-
VERIFICATION (SIGNATURE verification of licence issuing authority for only
those Licences which are not transmitted online.)’ from the Licence section for registration of
Licence,
2.2 The
advance authorization Licences are classified in two categories as under-
A) Advance authorization / Licences issued after fulfillment of Export
Obligation.
B) Advance authorization /Licences issued before fulfillment of Export
Obligation.
2.2A
Procedures for registration of advance authorization/Licences issued after fulfillment of Export Obligation.-
2.2A1 The Licence
holder/CHA has to submit the details of licences to the service centre for
generation of check-list. The Licence
holder/CHA will check/verify the details of check list & then submit it to
service centre for generation of Job No. for registration of the licence. After generation of Job No. for registration
of licence, it will be transmitted to
the EDI screen of the AO(Licence) for registration of the licence in the EDI
system. The AO(Licence) will accept the
Job No. in EDI System and endorse the registration no. & date on
the Customs copy of the licence.
2.2A2
The
licence –holder or his authorized person or CHA has to submit the following
documents to the Customs
Appraiser ( Licence section):-
i)
Original Custom copy of the Advance Authorization / Licence issued by the licencing authority.
ii) Original EODC (Export Obligation
Discharged Certificate) alongwith
Annexure showing the detailed statement of exports
taken into consideration by the
Licencing Authority for issuance
of EODC.
iii) Part ‘F’ statement / export
verification sheet duly verified by the Customs Authority in case of physical
export. In case of deemed export, the related excise
invoices and CT-3 duly certified / verified by the excise authority. (
This is only for those licences where the licencing
authority has made specific endorsement in the redemption letter/no Bond Certificate for such verification.
In other cases, Customs may verify the exports on random basis).
For
Licences issued under new Foreign Trade Policy 2009-14 the following additional
documents will be required :
iv)
If the exporter has availed the facilities in respect of inputs used in the
manufacture of export goods as
specified in para (v) of notification No. 96/2009-Cus dated11.9.2009, para (v)
of notification No. 99/2009-Cus dated
11.9.2009 and para (v) of notification No. 112/09-Cus dated 29.9.09, then the importer at the time
of clearance of the imported materials shall
execute a bond that the
imported materials will be used in his factory or in the factory of the
supporting manufacturer for the manufacture
of dutiable goods.
In this regard, it is clarified that,
there is no need to furnish any Bank Guarantee ordinarily
along with the bond, as the imports are taking place after fulfilment of Export
Obligation. However, if the assessing
officer, based on past record of the importer, feels that some revenue safe guarding measure is necessary, then a
bond backed with sufficient bank
guarantee may be taken.
The importer also has an option to pay additional duty of customs
on the imported materials and clear the goods without furnishing any bond as
specified above. This additional duty of customs so paid shall be eligible for
availing CENVAT Credit under CENVAT Credit Rules, 2004.
If the facility under rule 18 (rebate of duty paid on
materials used in the manufacture of resultant
product) or sub-rule (2) of rule 19
of the Central Excise Rules, 2002 or CENVAT credit under CENVAT Credit Rules,
2004 has not been availed,
then the imported materials can be cleared without furnishing a bond
specified above. However, the importer will
have to furnish a proof to the assessing officer to the effect that the ‘said
facilities’ have not been availed.
v) Further, he shall submit a certificate from the jurisdictional
Central Excise officer or a specified Chartered Accountant within 6 months from the date of clearance
of the said materials, that the imported materials have been so used. It may be
noted that in case this condition is violated, then the importer would be
required to pay all duties of Customs i.e. duty of Customs, the additional
duty, safeguard duty and anti dumping duty specified under sections 2, 3,8B,and
9A of the Customs Tariff Act,1975 respectively and Cess as applicable which
have been exempted under the notification Numbers 96/2009-Cus,99/2009-Cus and
112/2009-Cus. The term ‘dutiable goods’ has been defined in the explanation to
the notifications and would mean all excisable goods which are not exempt from
Central Excise duty and which are not chargeable to ‘nil’ rate of central
excise duty; the term specified chartered accountant has been defined in the
explanation to the notifications.
vi) In this regard, it is clarified that,
in case the importer is not registered with the Central Excise then he may be
allowed clearance based on a self declaration that the facilities
specified in the above referred conditions have not been availed. The
jurisdictional Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, may carry out random checks to verify the
correctness of the above declarations. However in case the importer is
registered with the Central Excise then he may be allowed clearance based on a
certificate issued by the jurisdictional Superintendent of Central Excise that
the facilities specified in the above referred conditions have not been
availed.
2.2A3.After scrutiny
of the above mentioned documents, the appraiser
(Licence-section) will register the
Licence in the EDI System and return/
hand over the original documents
alongwith licence to the Licence holder or his representative.
2.2B Procedure for
Registration of Advance authorization Licences issued before
fulfillment of Export Obligation-:
2.2B1 The DEEC License-holders will submit
the following documents to
Appraising Gr. VII D for registration of licences :-
i) Request
letter/Authorisation letter for registration of licence.
ii) Original
Customs copy of the Advance authorization/Licence issued by the Licensing authority.
iii) Bond
in the prescribed format.
iv) Bank
Guarantee as applicable.
2.2B2 The Bond shall be submitted in the
prescribed format as per Board’s Circular No.58/2004 dated 21/10/2004 and shall
cover the duty ordinarily leviable on the goods but for the exemption and
interest @15% per annum thereon for the period of 3 (three) years.
2.2B3
Execution of BG :
a)
The Bank Guarantee should be submitted alongwith covering letter of the Bank as
per the norms prescribed in Board’s
Circular Nos. 58/2004 dated
b) If the Licence-holder is availing BG
exemption in terms of para 3.1(a),(b), (c), (d), (e) of the Board’s Circular
Nos. 58/2004 dated 21/10/2004 as amended vide Circular No.17/2009-cus dated 25/5/2009,he shall submit the proof
of export performance or payment of duty, as the case may be, duly certified by
the jurisdictional Superintendent of
Central Excise in case he is registered with the Central Excise. In cases where
the Linence-holder is not registered with the Central Excise ,but he is a registered
member of an Export Promotion Council, he shall produce a certificate from the
concerned Export Promotion Council. In other cases the Licence-holder shall produce a certificate duly authenticated by a
practicing Chartered Accountant, who is registered with the Central Excise Department for
payment of service tax, alongwith the evidences of export to the satisfaction
of the Assistant
Commissioner or Deputy
Commissioner. The Chartered
Accountant issuing the certificate will mention his STC code and other
registration details in the certificate.
c) The Licence-holder claiming to fall
under category of “Other Manufacturer Exporter “ in terms of para 3.1(f) of
CBEC Circular No. 58/2004 dated 21.10.04 as amended by 17/2009-Cus dated
25.5.09, as eligible for execution of BG at rate of 15% of duty saved amount
should submit any of the following documents :
(i)Permanent
Central Excise Registration Certificate duly certified by Jurisdictional Supt.
Of central Excise with Pan Card.
(ii)Permanent S.S.I.Registration
Certificate issued by District Industries Centre with Pan Card (mere acknowledgement is not
sufficient).
(iii)Permanent Registration Certificate
issued by Secretariate for Industrial Assistance,
(iv)Any other Registration Certificate as a
proof of manufacturer exporter status alongwith
previous export performance certificate certified by Chartered Accountant/any Export Promotion Council with Pan Card.
d) All other licence holders are required
to execute 100% of duty saved amount.
2.2.B4 The bond /BG shall be filled for
a minimum period of 3 (three) years .Further all BG should contain an
unconditional self renewal clause/undertaking from Bank to keep the BG
alive till the Bond for which the bank
guarantee is being given is fully discharged by the Asstt./Dy.commissioner of
Customs.There should be no over riding clause. The BG should be signed by two officers of the Bank.
2.2B5 Further , the Licence-holder, who wish to
avail BG exemption as specified in para
2.2 B3 above, shall furnish an affidavit that he has not been defaulted
on export obligation in respect of any Advance Licence/
2.2B6 If as per records
of DEEC-Monitoring Section, E.O.D.C.(Export Obligation Discharge
Certificate) is pending against any Old Advance Authorisation / Licences issued prior to 01-01-2007 (wherein Export Obligation
period of 2 years has expired )
,then the licence-holder will not be
eligible for exemption of BG as per para 3.2 of
Circular Nos. 58/2004 dated 21/10/2004.
2.2B7 Appraiser will check the bond /BG,
Calculation of the duty foregone against the Licence and amount of bond /BG
before acceptance. In case of B.G., it
is to be got verified from the issuing
bank by the Customs Appraiser before acceptance of the B.G. against the
Licence.
2.2B8 Then the Licence-holder /CHA will
get generated the check-list for acceptance of Bond/BG from EDI
Service-Center. After verifying the
check-list, it will be submitted to the section of Gr.VII-D for generation of
job number. Then the job related to the
Bond/BG is to be accepted by the AC-GR.VIID in EDI System and Bond nos will be
generated by the System.
2.2B9 Thereafter, the clerk will keep
the original bond / BG, Affidavit and Xerox set of the Licence and other
documents in the file and return the
Orininal Licence to the licence-holder/CHA.
2.2B10. After completing
all the procedures related to Bond/BG with the Appraising Group 7D, the licence
holder/CHA shall submit the details of licences Bond/BG to the service centre
for generation of check list. The
licence holder/CHA will check/verify the details of check list & then
submit it to service centre for generation of Job-No. for registration of the
licence. After generation of Job No. for registration of licence, it will
be transmitted to the EDI screen of AO (Licence) for registration of the
licence in the EDI system. The
AO(Licence) will accept the Job No. in EDI system and endorse the registration no. & date
on the Customs copy of the licence.
3.0 Part
-II- (A) Monitoring of Export obligation :-
3.1 In terms of notification numbers 91/04-Cus dated
10.9.2004 (Advance Authorization for deemed Exports), 93/04-Cus dated 10.9.2004
(normal Advance Authorization scheme) and 94/04-Cus dated 10.9.2004 (Advance
Authorization for Annual requirement). Notification Nos. 96/2009-Cus and
99/2009-Cus both dated 11.9.2009 and 112/09-Cus dated 29.9.09 under
DEEC/ADVANCE AUTHORISATION SCHEME ,the importer has to produce evidence of discharge of export
obligation to the satisfaction of the Deputy Commissioner of Customs or
Assistant Commissioner of Customs, as the case may be, within a period of sixty days of the expiry of period
allowed for fulfillment of export obligation, or within such extended period as
the said Deputy Commissioner of Customs or Assistant Commissioner of Customs,
as the case may be, may allow. Monitoring of Export obligation is related with verification of
Export S/bills and Cancellation of Bond/BG.
3.2 Verification of Export S/bills:
Verification is to be done only
for those licences where the licencing authority has made specific endorsement in the redemption
letter/no Bond Certificate for such verification. In other cases, Customs may
verify the exports on random
basis.
The DEEC –Verification Section of JNCH is
presently situated at M/s
i)
Original Licence alongwith all amendment sheets including Invalidation
letters/ARO, if any issued by the Licencing Authority.
ii) Original Redemption
Certificate/EODC alongwith ‘NO-BOND CERTIFICATE’ showing the details of exports
considered by licencing authority while issuing EODC.
iii) B/L or mate receipt copy;
iv) ARE-1/ARE-4
v) Any other document, if required.
4.0 Part-II (B)
Cancellation of Bonds against Advance Licences.
4.1 The
DEEC (monitoring section) will moniter the export obligation against the
Advance Licences egistered with this port.This section will update the records
of pending bonds and BGs against the Licences . Online transmission of EODC
from DGFT to Customs EDI through ICEGATE has not yet started. Some Joint DGFTs
( Regional Licencing Authorities) have started
placing the EODC on their websites. The Preventive officer /examiner
will down load details of EODCs issued by various Joint DGFTs placed on their
websites and updated records related to the EODC under supervision of Supdt of
Customs.
4.2 After
completion of export obligation as
specified in the licence,the licence holder shall submit the following
documents for cancellation of Bonds/BGs :-
i)
Original
Licence alongwith all amendment sheets including Invalidation letters/ARO, if
any issued by the Licencing Authority.
ii) Original Redemption Certificate/EODC
alongwith ‘NO-BOND CERTIFICATE’ showing
the details of exports considered by licencing authority while issuing EODC.
iii) Part ‘F’ statement / export verification
sheet duly verified by the Customs Authority in case of physical export. In case of deemed export, the related excise invoices and CT-3 duly certified / verified by the excise
authority . (This is only for those licences where the licencing authority has
made specific endorsement in the
redemption letter/no Bond Certificate for such verification. In other cases
Customs may verify the exports on random basis).
iv) Statement of Import and export against the
licence in the following performa-
A)
Qty-wise comparison statement
|
Import
details |
Export
Details |
||||
|
Description of import goods |
Qty allowed |
Actual import Made |
Description of Export goods |
Qty of E.O. |
Actual Export Qty |
|
|
|
|
|
|
|
B ) Value-wise comparison statement.
|
Import
details |
Export
Details |
||||
|
Description
of import goods |
CIF Value allowed |
Actual import Made |
Description of Export goods |
E.O.in terms of
FOB Value |
Actual Exports value
realized |
|
|
|
|
|
|
|
4.3 If Customs duty alongwith interest is paid on
‘Excess import’ as per direction of Licencing Authority then the copy of
challan should be submitted by the licence holder alongwith the details of
calculation of the said duty and interest.
4.4
If EODC is issued before expiry
of the validity of the Licence ,on the basis of proportionate import and
export, then the said licence should also be blocked for further import in the
EDI system through the Appraiser (Licence-Section) before cancellation of Bond.
4.5 After
scrutiny of the above documents, the Bond (LUT) and BG, if any, will be
cancelled and released to the licence holder or his authorized representative
within a period of one month from the date of submission of above mentioned
documents .However in doubtful cases or where investigation has been launched
by Customs or other agencies, BG release would be subject to the corrective
action under the law. Cancellation of
Bond/BG will not preclude Customs
Authority to take action against the licencee at any stage in case any misdeclaration,
misrepresentation or misuse of the scheme is noticed.
5.0 Any
difficulty faced by the Trade in implementation of this Public Notice may be brought to the notice of the
undersigned immediately.
( B. K. SINHA)
Commissioner of Customs
(Export)