OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, KANDLA, KUCHCHH COMMISSIONERATE

 

File No.- S/20-02/2011-Appg (G)                                                 Date:16/03/2011

PUBLIC NOTICE NO.11/2011

Subject: - Verification Mechanism and monitoring of export obligation under duty exemption / reward Schemes – Reg.

1.       Attention of all the Importers/Exporters/CHAs and all concerned is invited to Standing Order No. 09/2011 dated 24.02.2011, Instruction F. No. 609/119/2010-DBK dated 18.01.2011 and Circular No.5/2010- Cus dated 16.03.2010. The following modifications /clarifications are made to further streamline the procedure of verification and monitoring of DEEC/Advance Authorisation scrips.

2.       As per para 4.26 of the Handbook of Procedures Vol. I (2009-2014), in the case where export obligation under Advance Authorisation is fulfilled, Regional Authority of DGFT redeem the case. After redemption Regional Authority of DGFT issues EODC/ Redemption letter/ No Bond Certificate (in case of “No BG/LUT” facility) [herein after all 3 referred as ‘EODC’] indicating shipping bill number(s), date(s), FOB value in Indian rupees as per shipping bill(s) and description of export product in respect of shipment which were taken into account for the purpose of fulfillment of EO. Cancellation/redemption of BG/LUT is undertaken by Customs after receipt of EODC with export details.

3.       There are two types of EODCs issued by DGFT. One type bears the requirement that Customs Authority shall verify the details of export from their records. Another type does not bear any such requirement. Wherever the EODC issued by DGFT bear the requirement that the Customs department should carry out verification, then such verification shall be done as per the existing procedure as modified in this order. In other cases, the EODC shall be accepted unless there is an intelligence suggesting misuses or for cases given in para 5. However it may be ensured that EODC is received along with export details from DGFT.

4.       All exporters are requested to submit original EODC alongwith export details issued by DGFT. All the original EODCs received from DGFT/submitted by exporter during a month in the concerned section of C.H., Kandla, Mundra and Custom Division, Bhuj will be registered sequentially. In case EODCs issued by DGFT do not bear the requirement of verification of exports by Customs, the DEEC Monitoring Cell may, however, verify details of exports and other related aspects on random basis.

5.       The EODCs with export details issued by DGFT which bear the requirement that the Customs Department should carry out verification of export details or for the cases selected by Customs for random verification. Intimation would be sent by Customs Department to produce the required documents as per Annexure ‘A’ to the in the concerned section of C.H., Kandla, Mundra and Custom Division, Bhuj for verification and consequent cancellation/redemption of BG/LUT.

6.       A list showing all the cases selected for verification of exports and cases where EODCs have been accepted by the department and BG/LUT cancelled/redeemed in the previous month shall be issued by the concerned section of the Custom House/Division vide a Notice by the 10th of every month. 

7.       In the cases where the EODC/Redemption letter is issued before the expiry of the validity of the Licence/Advance Authorisation, on the basis of proportionate import and export, then the said Licence/ Advance Authorisation shall be blocked for further import in the EDI system.

8.       Other procedural requirements as outlined in Circular No.5/2010- Cus dated 16.03.2010 and Standing Order No. 09/2011 dated 24.02.2011, Instruction F. No. 609/119/2010-DBK dated 18.01.2011 shall continue to be followed with the aforesaid modifications.

 

9.       Any difficulty faced by the Trade in implementing the above may be brought to the notice of the undersigned immediately.

 

                                                                                    (D.S. Negi)
                                                                                 COMMISSIONER

 

 To,

  1. The Chief Commissioner of Customs, Gujarat Zone, Ahmedabad.
  2. All Additional/Joint Commissioners of Customs, C.H.Kandla.
  3. All the Deputy/Assistant Commissioner of Customs, C.H.Kandla/ Mundra.
  4. The Assistant Commissioner of Customs, Customs Division, Bhuj.
  5. All Groups/ Sections, Customs, Kandla.
  6. The Gujarat Chamber of Commerce & Industries, Ahmedabad.
  7. The Southern Gujarat Chamber of Commerce & Industries, Surat.
  8. The Gandhidham Chamber of Commerce & Industries, Gandhidham.
  9. The Kandla Custom House Agents’ Association, Gandhidham.
  10. The Mundra Custom House Agents’ Association, Mundra.
  11. The Kandla Port Steamship Agents’ Association, Gandhidham.
  12. The Mundra Port Steamship Agents’ Association, Mundra.
  13. The Container Freight Station Association of Mundra, Bharat CFS Zone- 1, Mundra.
  14. The Chairman, Kandla Port Trust, Gandhidham.
  15. Notice Board / Guard File.
  16. EDI Section-for uploading the same on Kandla Customs Website.

ANNEXURE-‘A’

EODC/Redemption letter/ No Bond certificate with export details issued by DGFT which bear the requirement that the Customs Department should carry out verification of the details of export from their records or the cases selected by Customs for random verification, the licence holder shall furnish the following documents:

 1. In case of physical export under EDI Shipping Bills from Kandla/Mundra:

  1. Statement of import and export against the licence as submitted to DGFT in ANF 4F.

 

  1. Original Licence along with all amendment sheets including invalidation letter/ARO, if any, issued by the licensing authority. In cases where Original Licence is retained by DGFT, document showing endorsement of DGFT about retention of Original Licence.
  1. Original EODC/Redemption letter/No Bond certificate with details of exports issued by DGFT.

 

  1. Bank Realization Certificate from bank.
  1. ARE-1/ARE-2, wherever necessary.

 

2. In case of physical export under Manual Shipping Bills from Kandla/Mundra or EDI/Manual Shipping Bills from other ports, besides the documents as above at 1, the following documents will also be required:

(i)   B/L or Mate receipt copy
(ii)  ARE-1/ARE-2
(iii) Copy of the EP copy of Shipping Bills and BRCs.
(iv) Bank Realization Certificate from bank.

3. In case of Deemed Export besides the documents as above at 1, the following documents will also be required:

(i)       A  copy  of  the  invoice  or  a  statement  of  invoices  duly  signed  by  the  unit  receiving  the material  and  their jurisdictional excise authorities certifying the item of supply, its quantity, value and date of such supply.

However in  case  of  supply  of  items  which  are  non  excisable  or  supply  of  excisable  items  to  a  unit  producing  non excisable product(s), a project authority certificate (PAC) certifying quantity, value and date of supply would be acceptable in lieu  of excise certification.

              However, in respect of supplies to EOU/EHTP/ STP/ BTP, a copy of CT-3/ARE-3 duly signed by the jurisdictional excise authorities certifying the item of supply, its quantity, value and date of such supply can be furnished in lieu of the excise attested invoice (s) or statement of invoices as given  above.  

            However  in  case  of  supply  of  the  product  by  the  Intermediate  supplier  to  the  port  directly  for export by the ultimate exporter (holder of Advance Authorisation or DFIA) in terms of paragraph 4.13 of HBP v1, copy of the shipping bill with the name of domestic supplier as Intermediate supplier endorsed on it along with the file No. / Authorisation No. of the ultimate exporter and the intermediate supplier shall be required to be furnished.

 

(ii)      Payment certificate from the project authority. In  the  case  of  Advance Authorisation   for   Intermediate   Supplies/   deemed   exports,   supplies   to   the   EOUs/   EHTPs/STPs/   BTPs, documentary evidence from the bank substantiating the realization of proceeds from the Authorisation holder or EOUs/EHTPs/ STPs/ BTPs, as the case may be, through the normal banking channel. Confirmed irrevocable inland letter of credit or inland bill of exchange unconditionally availed/ Co- Accepted/ Guaranteed by a bank and the same is confirmed by the exporter’s bank and certified by the bank. For status holders, irrevocable inland letter of credit would suffice.

In the above cases (1, 2 & 3) Customs may also demand any other document as deemed proper.