Conversion of Shipping Bills from One Scheme to Another – JNPT Public Notice

[Customs Public Notice No. 105 dated 20th October 2010]

The following Public Notice was issued by the Commissioner of Customs (Export) Jawaharlal Nehru Customs House on 20th October 2010.

Sub: Conversion of free shipping bills to export promotion scheme shipping bills and conversion of shipping bills from one scheme to another.

Attention of all exporters, importers, Customs House Agents and members of Trade and all other concerned is invited to the Board’s circular No.36/2010-Customs dated 23.09.10 on the subject matter of Conversion of free shipping bills to export promotion scheme shipping bills and conversion of shipping bills from one scheme to another.

1.   The issue was re-examined by Board and a clarification was issued vide the above referred circular that Commissioner of Customs may allow conversion of shipping bills from schemes involving more rigorous examination (for example, from Advance Authorization / DFIA scheme to Drawback/DEPB scheme) or within the schemes involving same level of examination (for example from Drawback scheme to DEPB scheme or vice versa) irrespective of whether the benefit of an export promotion scheme claimed by the exporter was denied to him by DGFT/DOC or Customs due to any dispute or not. The conversion will be permitted in accordance with the provisions of section 149 of the Customs Act, 1962 on a case to case basis on merits provided the Commissioner of Customs is satisfied, on the basis of documentary evidence which was in existence at the time the goods were exported, that the goods were eligible for the export promotion scheme to which conversion has been requested. Conversion of shipping bills shall also be subject to conditions as may be specified by the DGFT/MOC. The conversion may be allowed subject to the following further conditions.

a)    The request for conversion is made by the exporter within three months from the date of the Let Export Order (LEO).

b)    On the basis of available export documents etc., the fact of use of inputs is satisfactorily proved in the resultant export product.

c)     The examination report and other endorsements made on the shipping bill/export documents prove the fact of export and the export product is clearly covered under relevant SION and or EDPB/Drawback Schedule as the case may be.

d)    On the basis of S/Bill / export documents, the exporter has fulfilled all conditions of the export promotion scheme to which he is seeking conversion.

e)    The exporter has not availed benefit of the export promotion scheme under which the goods were exported and no fraud/ misdeclaration / manipulation has been noticed or investigation initiated against him in respect of such exports.

2.   Free shipping bills (shipping bills not filed under any export promotion scheme) are subject to ‘nil’ examination norms. Conversion of free shipping bills into EP scheme shipping bills (advance authorization, DFIA, DEPB, reward schemes etc.) will not be allowed.

However, the Commissioner may allow All Industry Rate of duty drawback on goods exported under free shipping bill, without conversion of such free shipping bill to Drawback Scheme shipping bill, in terms of the proviso to rule 12(1) (a) of the Customs, Central Excise and Service Tax Drawback Rules,1995.

3.   This Public Notice supersedes the earlier Public Notices issued in the past on this issue. This Public Notice shall be applicable only to shipping bills filed on or after the date of issuance of circular by the Board. Till such time as EDI system is modified to allow conversion of shipping bill in the EDI system, conversion may be allowed manually.

4    Difficulties faced, if any, in implementation of the directions may be brought to the notice of the undersigned.

F.No.S/12-Gen- 42 /08 AM(X) JNCH