Re-credit of 4% SAD in DEPB, VKGUY

[ZPRU Circular No. 04 dated 5th January 2011]

The following Circular was issued by the Director General of Foreign Trade, Zonal Policy Research Unit, Mumbai on 5th January 2011.

Attention is invited to ZJDG’s Circular No.01/AM.11 dated 27.04.2010 regarding recredit of 4% Special Additional Duty (SAD) of Customs in DEPB, VKGUY, FPS, FMS, MLFPS Scrips.

Para-6 of the said circular stipulated that the application by transferee should be accompanied with transfer letter(s) and that the signature of the signatories in the transfer letter should be attested/certified by bank authorities clearly indicating the name of bank official, code number and designation.

It has come to the notice that many cases of recredit of SAD are held up on account of non-compliance with deficiencies relating to non-availability of code number and designation of the bank officials.

The matter has been reviewed. Since the credit note in such cases are issued by Customs authorities to the transferee of the scrip, it can safely be presumed that the locusstandi of the transferee has been established at Customs’ end.

In view of the above, it has been decided that henceforth deficiencies with regard to code number and designation of the bank officials as stipulated in para-6 of the above circular need not be insisted upon provided bonafides of the transferee who has applied for SAD recredit are established and the credit note has been issued by Customs authorities in his favour.

All cases of recredit where such discrepancies have been pointed out should be reviewed suo-moto and finalised expeditiously at the level of JDG.

This issues with the approval of competent authority.