Procedure for Registration of Advance
Authorisation at Nhava Sheva
The
following Public Notice was issued by Commissioner of Customs (Export)
Jawaharlal Nehru Custom House on 21st October 2009.
[Customs
Public Notice No. 78 dated 21st October 2009]
Subject:
Procedure for Registration and Monitoring of DEEC/Advance Authorisation Scheme
Attention
of all the Importers/Exporters/CHAs and DEEC Linence-holders and all
concernedis 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
30th September, 2009 in case of DEEC/ADVANCE AUTHORISATION SCHEME. Keeping in
view the changes that have been brought over the years in the Foreign Trade
Policy and Circulars and Notifications issued by the Board from time to time,
the following procedure shall hence forth be followed in respect of imports
made under DEEC/ADVANCE AUTHORISATION SCHEME.
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 21/10/2004 as
amended vide Circular no.17/2009-cus dated 25/5/2009.
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, New
Delhi with Pan Card (mere acknowledgement is not sufficient).
(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 Punjab Conware. The online transmission of
Export S/bills pertaining to DEEC has only started from 01-04-2009 and the
software of online transmission of E.O.D.C. is yet to be developed by
DG(SYSTEM) and DFGT, therefore the present procedure of verification /logging
of export S/Bs pertaining to DEEC scheme will continue. At the time of
verification, the fact of verification will be recorded in the EDI System and
S/bills will be locked in the system so that these may not be again counted
towards discharge of export obligation against any other licence. In this context the licence holder shall produce the
following documents for verification of exports/logging of exports against the
advance licence to the Assistant Commissioner of Customs(in charge of DEEC
Verification Cell) at his office situated in the premises of M/s Punjab Conware
:-
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.
File No.- S/16-DEEC-GEN-1520/09/VII D