Verification of DFIA Licences and
Monitoring their EO under FTP 2009-14
The following Public Notice was issued by the Commissioner of Customs
(Export) Jawaharlal Nehru Customs House on 17th November 2009.
[Customs Public Notice No. 85 dated 17th November
2009]
Sub: Verification of Duty Free Import Authorization (DFIA) Licences and monitoring of their Export obligation under
the Foreign Trade Policy (FTP) 2009-14.
Attention of Importers/Exporters/CHAs
and Members of the trade and all concerned is drawn to the procedures being
followed under Public Notice No. 56/2006, dated 04.10.2006 and Customs
Notification No. 40/2006, dated 01.05.2006 (as amended by Notification No.
19/09 dated 24.02.2009) in the matter of verification of DFI Authorizations
issued by Regional Licencing Authorities (RLAs).
2. The Board has issued Circular No.26/2009-Cus dated 30.09.2009
incorporating the new guidelines to be followed in the light of the FTP 2009-14
in the matter of verification of the DFIAs issued by the Regional Licencing Authorities. The DFIA holders are eligible to
avail duty exemption for the materials imported by them only upon fulfilling
the conditions laid down in the Customs Notification Nos. 40/2006-Cus dated
01-05-06 & 98/2009-Cus dated 11.09.2009. In addition to the above
requirements the DFIA holders also have to comply with the minimum value
addition and the period within which the Export Obligations (EO) have to completed,
etc., as laid down by the FTP, 2009-14. Taking into account the changes that
have been brought over the years in the Foreign Trade Policy and Circulars and
Notifications issued from time to time, the procedure for verification of the
DFIA Licences has been re-examined and the following
procedure is henceforth prescribed with immediate effect for verification of
DFIA licenses.
3. The verification will be done to confirm the compliance of the
conditions of the Customs Notification No. 40/2006, dated 01.05.2006 (as
amended by Notification No. 19/09 dated 24.02.2009) and notification
No.98/09-Cus dated 11-09-09 and the following :
(a) Value addition norms, as prescribed in the Policy, have been met.
(b) The SION Norms have been correctly followed.
(c) The Export Obligation has been correctly fulfilled.
(d) Any other condition as stipulated in the Policy with respect to DFIA
Scheme has been fulfilled.
4. As per the Para 4.26 read with Para 4.33 of FTP2009-14 of the Hand
Book of Procedure (Vol I), the Regional Authority
would issue an EODC/Redemption Certificate as prescribed in the Policy. The
EODC/Redemption Certificate along with the following documents shall be
submitted to the DFIA Verification Section for verification:-
i) Original
DFIA licence alongwith the
EODC/NBC.
ii) Self attested EP Copies of the Shipping Bills & export
invoices/packing lists alongwith a Statement showing
Shipping Bills wise details particularly the FOB & BRC value and weight/sqm etc.
iii) Self attested copies of ARE-1/ARE-2, wherever applicable as a
proof of non-availment of facility under Rule
18(rebate of duty paid on materials used in the manufacture of the resultant
product) or sub-rule (2) of the Rule 19 of the Central Excise Rules 2002 or
CENVAT Credit under CENVAT Credit Rules, 2004. In absence of the ARE-1 / ARE-2,
a certificate issued by the jurisdictional Central Excise Authority on the
above aspect may be submitted
iv) Copy of Test Report / Chartered Engineers Certificate / Technical
Opinion, wherever applicable.
v) Self attested photo copy of the Bank Realization Certificate (BRC)
vi) A declaration in compliance to the condition No. 7 of the Customs
Notification No. 40/2006, dated 01.05.2006 (as amended by Notfn.
No.19/2009 dated 24.02.2009) regarding non disposal/utilization of the exempt
materials in any manner except for utilization in discharge of export
obligation.
vii) In case of Deemed exports/intermediate exports, the unit receiving
the materials shall submit a certificate from central excise authorities
regarding the items of supply, quantity, value and the date of supply along
with the relevant invoices. In respect of supplies made to EOU/EHTP/STP/BTP,
the supplier can either submit a copy of ARE-3/CT-3 duly signed by the
jurisdictional central excise authorities or the concerned bond officer as the
case may be. Payment certificate from the Project Authority in the prescribed
format may be submitted. In regard to these categories of supplies, the
suppliers have to submit a statement of export realization issued by the Bank
and also a declaration to the effect that such proceeds were realized through
the normal banking channel. In such cases, the supplier also will submit a
statement of supplies indicating the details of invoice number, date, FOB
value, description of the materials. Further, a statement of B/E-wise items of
imports, quantity, and CIF value need to be submitted in this regard.
viii) Any other documents that may be required by the Assistant
Commissioner of Customs (In charge of Verification Cell).
5. The above documents may be submitted to the DFIA VERIFICATION CELL which is at present functioning from the
following address:-
Office of the Assistant Commissioner of Customs DFIA/DEEC Verification
Cell, Punjab Conware CFS, Nhava
Sheva
6. The staff while receiving Original DFIA Licence/file
alongwith the aforesaid documents shall keep a record
in the register prescribed for the purpose. The receiving staff will verify
whether the original Licence and all other required
documents have been correctly tendered at the time of submission. One copy of
the acknowledgement (aas detailed in Annexure A)
shall be given to the person submitting the License indicating therein the Sr.
No. and the Date of the entry in Receipt register. The signature of the person
submitting the Licence for verification with his full
Name, CHA No. and Pass No. shall also be recorded in the said Register.
7. The Licence should be duly verified as
provided in the Para 4.26 read with Para 4.33 of the FTP2009-14 of the HBOP (Vol I) by the Superintendent/Appraiser for the said
purpose. The verified Original DFIA Licence and the
related file will be handled by the staff posted at the DFIA Verification
Section. The Original verified DFIA Licence and the
DFIA Statement shall be returned by the staff to the person from whom the
licenses were received for verification between
3.00 pm and 5.00 pm on the day after the date on which the licenses were
received for verification as far as possible. The DFIA Licence
shall be delivered only to the person who had submitted the same for
verification and not to any other person. The signature of the person
collecting the verified Licence shall be taken on the
copies of acknowledgments kept in office record and also in the prescribed
Register.
8. Any difficulties faced in implementation of this Public Notice may
be brought to the knowledge of the undersigned immediately.
F.No. S/6-GEN-553/06(DFIA) Verification
Annexure A
(To be presented in
triplicate)
DFIA Section
JNCH, Sheva.
Date:-
Received DFIA Licence
No
. dated
for verification which has been entered in the prescribed
register at Sr. No.
./
.(year). Verified licence
may be collected between 3p.m. to 5 p.m. on
, by the person who has
submitted the same.
Clerk/TA
DFIA
Section
JNCH,
SHEVA.
Name & Signatures of the Person Submitting the
Documents
Date:
Name & Signatures of the Person Receiving the
Original DFIA Licence
Date:
Clerk/TA
DFIA
Section
JNCH,
Sheva