Manual
Filing of BE for Refund of 4% Spl CVD Extended upto 31 Dec 2010
[CBEC Circular No. 27 dated 13th August
2010]
Subject: Refund of 4% CVD (SAD) in terms of Notification
No.102/2007-Customs dated 14.9.2007 by re-crediting the DEPB scrip / reward
scheme scrips.
Your kind attention is invited to the Notification No.102/2007-Customs
dated 14.9.2007, Notification No.93/2008-Customs dated 1.8.2008 and Board’s
Circulars No. 6/2008-Customs dated 28.4.2008, No.16/2008-Customs dated
13.10.2008, No.6/2009-Customs dated 9.2.2009, No.18/2010-Customs dated 8.7.2010
and No.23/2010-Customs dated 29.7.2010 regarding procedure to be followed by
the Customs field formations in case of 4% CVD refund claims.
2. Circular No.6/2008–Customs
dated 28.4.2008 provides that the refund of 4% CVD paid at the time of import
through DEPB scrips shall be disbursed by re-credit
of the sanctioned refund amount to the relevant DEPB Licence.
Further, Circular No.6/2009–Customs dated 9.2.2009 extends the facility of
similar re-credit to the relevant scrip for disbursing SAD refund in respect of
other scrips like Vishesh Krishi and Gram Udyog Yojana (VKGUY), Focus Market Scheme (FMS) and Focus Product
Scheme (FPS) also. However, it has been represented by the trade and industry
that existing EDI facility does not allow re-credit of the amount of 4% CVD
refund sanctioned in respect of these schemes in the relevant scrips and as a result of that, a large number of refund
claims are held up in different customs houses. The matter was referred to DGFT
for resolving the same.
3. DGFT have subsequently issued
a Public Notice No.38/2009-2014 dated 3.2.2010 and also a Policy Circular
No.22/2009-14 dated 3.2.2010 for extending the validity of Duty Credit Scrips. Accordingly, concerned Commissionerates
of Customs are required to issue a consolidated certificate indicating total
amount sanctioned as refund (4% CVD). As per Public Notice, concerned DGFT /
Regional Licensing Authorities (RLA) are required to issue necessary re-credit
on the scrip on the basis of consolidated certificate issued by Commissionerate. Policy Circular No.22/2009-14 dated
3.2.2010 issued by DGFT also provides for sending a copy of such duty scrips where re-credit was allowed along with the details
of original duty scrips so that the Customs
authorities can compare the details before allowing clearance of import
consignment against the scrips.
4. It has come to the notice of
the Board that even after issue of the Public Notice and Policy Circular by
DGFT on the issue of re-crediting DEPB scrips on
account of 4% CVD refund, difficulties are still being faced by trade and
industry as EDI, at present, does not have facility to register such
re-credited scrips issued by DGFT in the system.
5. The matter has been examined
in the Board. Board has considered the difficulties associated with change in
EDI System to allow re-credit of scrips in case of 4% CVD refund and also the view of DGFT that
modification in software at the end of DGFT for the purpose of re-credit of 4%
CVD through Electronic Message System and its transmission to the Customs is
not feasible at present.
6. Considering the large scale
pendency of such refund claims and in order to address the difficulties in
getting 4% CVD refund by re-crediting scrips, it has
been decided by the Board that registration of re-credited duty scrips issued by DGFT on the basis of consolidated
certificate furnished by Customs should be allowed on manual basis. The
facility of manual filing of Bill of Entry for utilizing the amount of
re-credited CVD refund for payment of duty is also allowed. This facility has
been extended up to 30.12.2010 as a
one-time measure with a view to liquidate all such pendencies
by that time.
7. The Commissioners concerned
are requested to exercise due diligence in order to check that the facility of
manual filing of B/E in case of re-credited DEPB scrips
/ reward scheme scrips on account of refund of 4% CVD
is not misused. In this regard, it is also clarified that only those B/Es will
be allowed manual processing wherein the duty involved is equal to or less than
the balance amount in the re-credited scrip.
8. It has also been decided that
importers should be suitably advised that re-credit amount of CVD refund should
be used for payment of BCD and CVD only and not for 4% CVD so as to avoid
cascading of subsequent re-credit of 4% CVD in the relevant scrips.
Further, the Board is of the view that in the interest of ensuring expeditious
grant of refund of 4% CVD in cash, the importers may be advised to make the
initial payment of 4% CVD in cash.
9. A suitable Public Notice and
Standing Order may be issued for the guidance of the trade and staff.
10. Difficulties faced if any in
implementation of this Circular may be brought to the notice of the Board.
F.No.401/46/2008-Cus.III