Action on default in export obligation under the Advance or EPCG authorizations

 

 

Facility for suo moto payment of customs duty in case of bona fide default in export obligation  under the Advance / EPCG authorisations 


Action on default in export obligation under the Advance or EPCG authorizationsThe extract of Circular No.  11/2015 – Customs 1st April,  2015 is given under:

The procedure may be adopted by an AH who has obtained acknowledgement from the concerned Regional Authority of its application for regularization of bona fide default in export obligation. The application must show, inter alia, the AH's own/self-calculation of the duty payable for the default in Export Obligation and interest thereon.

During pendency of the detailed calculations by the RA, such an AH may deposit, in cash, the own/self-calculated duty amount, along with interest in cash by challan (showing relevant particulars) in the designated bank at the port where the authorization is registered. One copy of the paid challan shall be submitted to the Customs Authority at the said port which shall update its records; and/or  produce valid duty credit scrip before the Customs Authority at the port where the authorization is registered for debit of the own/self-calculated duty amount.

 

Such scrip should be one issued underChapter 3 (excluding SHIS, SFIS and AIIS scrips) in terms of FTP (2009-14) or chapter 3 of FTP (2015-20) or be a Post-export EPCG duty remission scheme scrip. The debit shall only be in respect of goods that are permitted to be imported under the relevant scrip. The Customs Authority shall reflect the debit in Customs records and also suitably endorse it on the scrip. However, the AH shall pay the interest in cash in the designated bank at the port where the authorization is registered. One copy of the paid challan shall be submitted to the Customs Authority at the said port which shall update its records.

 

 

 


On receipt of the excess import letter issued by RA after its detailed calculations (indicating inter alia the reported duty deposited/debited and interest paid on self/own calculation basis, if any), the Customs would confirm the actual amount of duty payable for the default in EO and interest thereon and, taking into account the actual deposits/debits already made, would indicate the balance duty etc., if any. The AH shall pay these by the above modes and the Customs Authority shall endorse all the paid challan(s).

On receipt of the redemption letter (indicating, inter alia, details of payments including amount and mode) from RA, the Customs Authority shall reconcile and initiate the prescribed actions for releasing the Bond / BG.


Complete details of Circular is given here:

 

Tips to importers of Edible preparations of fish,meat,crustaceans etc         
Guidelines to importers of Animal fats, Animal oil, vegetable fats,vegetable oil etc.
How is packing credit/pre shipment finance be liquidated?  
Bank Pre shipment Finance to exporters
What is crystallization of export bills? How does delinking of export bills work?                  
Types of Insurance Documents
 Is Airway bill a documents of title?
Is Customs House Agents (CHA ) required to be appointed mandatory?
 How many types of shipping bills in export
How to add Line number in Import General Manifest in Custom in India
 How to amend AWB number in Import General Manifest (IGM)
 What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?
Triangular shipment
Types of Insurance Documents.

 

 How to protect parties each other in triangular exports
Is letter of credit safe mode of payment?
IGM amendment (Import General Manifest Amendment)
Import clearance under high sea sales
Is Customs House Agents (CHA ) required to be appointed mandatory?
How does Letter of Credit work?
 How does STP units work in India?
Government rules to import Slag, Ores and Ash      
 Importation of salt, earth stone, lime cement           
 How to import Tobacco and Tobacco Substitutes   
 Tips to importers of Prepared Animal Fodder          
 How to import Vinegar,Beverages   
 Foreign Trade Policy 2014-19 (FTP 2014-19) delayed
Types of Export Containers   
Dimension of Cargo Containers
The term LCL. What does LCL mean?
Difference between normal container and Hard Top Container

 


How to import Prepared vegetables, Prepared fruits, Prepared nuts           
Guidelines to importers of Prepared Cereals, Prepared Flour, Prepared starch and Prepared Milk           
Import processes of Cocoa and Cocoa products     
Are Construction contractors eligible for Packing credit?     
Conditions of Bank to provide Export Packing Credit to Sub-Suppliers       
Packing credit pre shipment finance to suppliers for exports through other export agencies          
Is ON BOARD CERTIFICATE required for LC negotiation
 What is VACIS exam in US import customs clearance
 When can an exporter release bill of lading from shipping company?
How does Wire transfer work in international business?
Import of Textile and Textile Articles
 Rules to import Man-made staple fibers
How to import Knitted fabrics or Crocheted fabrics  
How is assessable value calculated by customs for imports?
Difference between general dry container and half height container
 Tips to import Vegetable Textile fibers, Yarns
 How to import Man made filaments, yarns  
 How is IGM filed under high sea sale?
Transferability of Bill of Lading
How to book empty container for factory/CFS/ICD/port stuffing
How to calculate CBM in LCL export shipments:
Is THC same in all ports
KINDS OF LOSSES in Marine Insurance 
Types of Export Containers   
Dimension of Cargo Containers
Switch BL
TYPES OF MARINE INSURANCE POLICIES Withdrawn CVD exemption on portable X-ray machine / system, Budget 2014   
12 Major risks and solutions in Imports and Exports 
Know the term Port of Discharge and Place of Delivery
MSDS Material Safety Data Sheet
Multiple Country Textile Declaration
Negotiation procedures and formalities of export bills
Material used for testing is eligible for Modvat
Mode of payments in international trade
What is VACIS exam in US import customs clearance
When can an exporter release bill of lading from shipping company?
Procedures for Re-imports
Procedures to claim brand rate of draw back
Introduction to this web site.
Is Airway bill a documents of title?
Sea carriers
What is the difference between BAF and CAF
Stuffing and De stuffing – 2 regular terms used in shipping

 

 
 


Comments


KANNAN: Check list for complete export obligation to submit DGFT

GAUTAM M Kothari: In case you submitted all export performance epcg scheme and you half of the duty saved amount forefifited still Dgft demand the double the value of imported capital goods imported. And all this happened twenty years back how to come out in the absence of original paper s

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers