Indemnity Bond for Absence of Original Documents Ok for 4% SAD Refund

The following Facility Notice was issued by the Commissioner of Customs (Import) Jawaharlal Nehru Custom House on 27th January 2010.

[Custom Facility Notice No. 05 dated 27th January 2010]

Sub: Refund of 4% Additional Duty of Customs in pursuance of Notification No.102/2007-Customs dated 14.9.2007 -Submission of original documents.

Attention of all Importers, Customs House Agents, Member of Trade and all concerned is invited to Public Notice No. 43 /2008 dated 06/06/2008, wherein it is provided that interalia the claimant shall produce Duplicate Bill of Entry (Importerís Original Copy) with Original TR-6 challan for refund of 4% SAD. These original documents are necessary not only because the refund should always be granted on the basis of original documents after verification of relevant facts but also to endorse the fact of refund of duty on these documents.

2.†† There are instances when the claimant importers are unable to produce these original documents for various reasons. Sometimes the importers by mistake submit the Duplicate Bill of Entry (Importerís Original Copy) to the bank and submit original Triplicate Bill of Entry (Exchange Control copy) to the Customs for refund. Sometimes the original Bill of Entry submitted by the importer is partially torn or damaged and it cannot be ascertained whether this is duplicate or triplicate Bill of Entry. Under these circumstances reconstruction of the Bill of Entry or the TR-6 challan, as the case may be, becomes necessary and processing of refund claim is delayed. In such cases the importers are required to submit an indemnity bond and the cases are being put up to the Commissioner for waiving the requirement of original documents.

3.†† Therefore, in order to further simplify the procedure and to ensure expeditious disposal of such claims it has been decided that in genuine cases where reasons for absence of original Bill of Entry or the TR-6 challan are explained by the importer and the particulars are verified from the EDI System, the refund claims may be sanctioned by the by the Astt./Dy. Commissioner, without seeking approval of the Commissioner, after obtaining an indemnity bond from the importer in this regard.

4.†† Public Notice No. 43 /2008 dated 06/06/2008 stands modified to the extent mentioned above. The procedure as mentioned above shall also apply mutatis mutandis in other than SAD Refund cases also.

5.†† The contents of this Facility Notice may be brought to the notice of all the members of the trade, importers and their agents.

F. No. S/26-Misc-37/2009-10 CRC IIA JNCH