DGFT Re-Credit on
Reward Schemes not Required in Re-Export Cases,
Customs Permission Adequate
[CBEC Circular No. 45 dated 13th October 2011]
Subject:
Re-Export of goods imported under reward schemes and DEPB – Re-credit of duty.
Reference is invited to
Board’s Circular No. 75/2000-Cus dated 11.09.2011; No. 21/2006-Cus dated 10.08.
2006 and 25/2009-Cus dated 29.09.2009 regarding procedure to be followed for allowing
of re-export of goods and re-credit of duty credit scrip in respect of DEPB, SFIS/VKGUY, TPS /
DFCE / FMS / FPS / HTPEPS/SHIS/ Agri Infrastructure
Incentive scheme under VKGUY respectively.
2. In terms of the said circulars, goods imported under DEPB or
other schemes mentioned above, which have to be re-exported because such
imported goods were found defective or unfit for use were allowed for re-export
subject to the fulfillment of certain conditions specified therein and provided
necessary permission for such re-export was given by the Commissioner of
Customs concerned.
3. In this regard, representations have been received from the
trade and industry that the extant circulars do not provide for situations,
where such re-export takes place, for reasons other than the goods having been
found to be defective/ unfit. The matter
has been examined.
4. It is observed that the provision for
re-export of defective/ unfit goods stipulated under para
3.11.6 of the Hand Book of Procedures Vol. I (HBP v1) has been amended by the
DGFT vide Public Notice No. 22/2009-14 (RE 2010) dated 14.01.2011 wherein
re-export of imported goods subject to re-assessment of debited duty and re-export on account of any other
reason was allowed in addition to export of defective/ unfit goods that was
already provided in the said para 3.11.6 of HBP
v1. Further, the procedure for issuance
of fresh scrip by concerned Regional Authority (RA) of DGFT has also been
replaced with re-credit certificate issued by the Customs.
5. In view of the above said amendments by
DGFT in the HBP v1, it is clarified that in respect of reward schemes specified
under Chapter 3 of FTP and DEPB scheme, re-export of imported goods, which are
found to be defective /unfit and/ or for re-export on account of any other
reason, may be permitted by the Commissioner of Customs, subject
to fulfillment of the following conditions:
(i) re-export
of goods shall take place from the same port from where the goods were
imported;
(ii) the
goods are re-exported within 6 months from the date of import;
(iii) the Asstt. /Dy. Commissioner of Customs is satisfied about the
identity of the goods;
(iv) The goods are not put into use after import;
(v) At the time of allowing the
re-export, Customs shall issue a re-credit
Certificate containing particulars of scrip used, date of import of re-exported
goods and amount debited while importing such goods. There shall be no need for
issue of fresh scrip in such cases by DGFT regional offices;
(vi) Customs shall permit use of the
said re-credit amount to the extent of 98% only;
(vii) The validity of re-credit
certificate shall be for six months from the date of issuance of re-credit
certificate; and
(viii) The remittances have to be properly accounted for as per the prevalent
guidelines for the import and the export of the goods.
6. The above clarification will be effective
from the date of issue of Public Notice No.
22/2009-14 (RE 2010) i.e. w.e.f. 14.01.2011.
7. Suitable Public Notice for information of the trade and standing
orders for guidance of the staff may kindly be issued on the above lines.
F. No. 605/49/2009-DBK