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PUBLIC NOTICE
NO: NO.150/2002
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Sub :Verification of Advance
Licence and monitoring of Export Obligation underDEEC scheme under
the Exim Policy,2002-07 -reg |
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1)
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Under the new Exim Policy,
2002-07, changes have been carried out in the DEEC scheme, including
the doing away of DEEC, Part I and Part II. Also, Para 4.11 of the
Handbook of Procedures, 2002-07 provides for "Description of
an Advance Licence", as per which an Advance Licence shall specify
the following :- |
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- The names and description of items
to be imported and exported/supplied
- The quantity of each item to be
imported or wherever the quantity cannot be indicated, the value
of the item shall be indicated. However, if in Standard Input
Output Norm (SION), the quantity and value of individual inputs
is a limiting factor, the same shall be applicable.
- The aggregate CIF value of imports;
and
- The FOB/FOR value and quantity of
exports/supplies.
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2)
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The notifications
pertaining to advance licences scheme are No. 43/2002-Cus dated
19.4.2002 and No. 46/2002-Cus., dated 22.4.2002. |
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3)
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Para 4.24
of the Handbook of Procedures 2002-2007, Vol.I relates to monitoring
of the fulfillment of export obligation. Further, paras 4.25
and 4.26 of the said Handbook of Procedures lay down the procedure
of fulfillment of export obligation and redemption of the Advance
Licence respectively. As per para 4.26 of the Handbook of Procedures,
2002-2007, Vol.I, after completion of Export Obligation, the
licencee is required to submit all the relevant information/documents
to the licencing authority who will redeem the case once the
Export Obligation has been fulfilled.After redemption, the licencing
authority shall forward a copy of the redemption letter indicating
the Shipping Bill (S/B) No.s, dates, FOB value in Indian Rupees
as per the S/Bs and description of the export products to the
Customs authorities at the port of registration. However,
before discharging the BG/LUT against the Advance Licence, Customs
are required to verify if the details of exports as given in
the "Redemption Certificate" are as per the Customs
records. Further, redemption of LUT does not preclude the
Customs authorities from taking action against the licence holder
for any mis-declaration, misinterpretation and default detected
subsequently. |
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4)
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Likewise, para 4.18
(Note(b)) of the Hand Book of Procedures provides that in respect
of an Advance Licence issued where export obligation has been
fulfilled and "No BG/LUT" facility has been provided,
the licencing authority shall forward a copy of the "No
Bond Certificate" indicating the shipping bill number,
date, FOB value as per shipping bill and description of export
product in respect of shipment which were taken into account
for calculating fulfillment of export obligation to the customs
authorities with whom the licence is required to be registered.
Before allowing the imports against Advance Licence, the
Customs shall verify that the details of the exports as given
in the "No Bond Certificate" are as per their records. |
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5)
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From the above, it
is clear that the Customs authorities are required to verify
and ensure that details of fulfillment of Export Obligation
as furnished by the exporter are proper and correct for the
said purpose. It is therefore, necessary that the Customs authorities
conduct proper verification of the details of exports so as
to eliminate the possibility of any fraud, etc. With regard
to the above, the following procedure is hereby prescribed for
verification of details of exports in connection with the fulfillment
of Export Obligation by the concerned licence holder.The
verification work will be done by the DEEC Verification Section. |
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- Only the holder of Advance
licence, his authorized employee or his authorized CHA will
be permitted to submit documents in the DEEC Verification
Section.
- In case of submission under
"Self" Category, the holder of the Advance licence
or the authorized employee of the Company/firm who will
submit Advance licences shall obtain an identification number
from the Inspector DEEC. For this purpose a certificate
issued by the Advance licence holder in favour of the person
as per format given in the Annexure - C shall be presented
in duplicate to the Inspector, DEEC. The Inspector
will allot a number to the person. This number shall be
the identification number for the person concerned and shall
be endorsed by the Inspector under his signature
and stamp on both the copies of the certificate. One copy
of this certificate shall be returned to the concerned person
and another copy shall be kept in office records.
- Submission of documents:-
Once a person has been registered as above on the recommendation
of a company/firm, he/she will be eligible to submit and
receive Advance licences of the company/firm for verification.
However, for all licences presented for verification, an
authority letter issued by the licence holder in the proforma
given in Annexure - E which must contain the registration
number of the person and the Advance licence number to be
submitted, shall be attached in the respective verification
files. The file along with other documents shall be submitted
to the receiving Inspector . The receiving Inspector shall
verify that the file is being submitted by the authorized
person. Acknowledgements will be issued.
- In case a CHA, other than
the one engaged by the exporter at the time of export shipment,
is submitting the documents, the application will be signed
by the proprietor/ partner of the CHA firm. He will also
certify that for processing of the documents before customs
he has not engaged the services of any person who is not
in the roll of his employment.
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6)
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VERIFICATION
OF EXPORTS FOR ADVANCE LICENCES ISSUED ON POST EXPORT BASIS. |
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6.1) |
As
the requirement of DEEC book has now been dispensed with, it
is necessary to verify, the licences of post-export basis and
the "No Bond Certificates" issued by DGFT, are based
on proper shipping bills and the export goods meet the requirements
of the DEEC scheme. Verification will be done of the Advance
Licences, which are issued on post-export basis by DGFT and
Bond/BG is not required for registration of licence with Customs.
The verification procedure shall precede the registration
of such Advance Licences. Verification of exports shall
be done by the jurisdictional Commissionerates from where exports
have taken place. In case exports against an Advance Licence
have taken place from two or more Commissionerates, verifications
have to be done by each Commissionerate, for the exports from
that Commissionerate and it shall be the responsibility of the
exporter to obtain the required verification from the concerned
Commissionerates. |
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6.2) |
Advance
licence with the following documents shall be accepted for verification
by the Inspector DEEC on any working day :- |
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- Acknowledgement as prescribed
in Annexure-A for submission of Advance licences for verification.
(in triplicate)
- Index for documents submitted.
- Authorisation letter of the
exporter. If CHA is other than the one engaged at the time
of export shipment, the acceptance of the CHA for undertaking
verification (this is to be signed by proprietor/partner
of the CHA firm).
- Application of the exporter
with the request for verifying the DEEC scrip.
- DEEC statement in duplicate
signed by the licence holder giving details of the Shipping
Bills.
- DEEC copies of S/Bill in original
- Photocopies of EP copies of
S/Bills
- Original copy of Bill of Lading/Certified
copy of the Bill of Lading
- Customs attested invoice
- Copies of AR-4/ARE-1, where
applicable
- Copy of test report/Chartered
Engineers Certificate/Technical opinion, as applicable.
- Bank Realization Certificate
- Any other documents (specified
by Customs )required for verification.
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6.3)
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The DEEC
Inspector while receiving Advance Licences shall keep a record
in the register prescribed for the purpose. The receiving Inspector
will verify whether the original Advance licence and all other
required documents have been correctly tendered at the time
of submission. One copy of the acknowledgement as detailed in
Annexure-A shall be given to the person submitting the Advance
Licences indicating therein the Sr.No. and the Date of the entry
in receipt register. The other two copies of acknowledgement
will be retained in the file. The signature of the person submitting
the Advance Licence for verification with his full Name, CHA
No., and Pass No., shall also be recorded in the said register.
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6.4)
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The duly
verified Advance licence shall be returned the next day to the
person from whom the Advance Licences were received, for verification.
The Advance Licence shall be delivered only to the person who
had submitted the same for verification and not to any other
person. The signature of the person collecting the verified
Advance Licence shall be taken on the copies of acknowledgements
kept in office record and also in the prescribed register. |
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7)
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VERIFICATION
OF EXPORTS FOR ADVANCE LICENCES ISSUED ON PRE-EXPORT BASIS AND
AGAINST WHICH REDEMPTION LETTER HAS BEEN ISSUED BY DGFT. |
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7.1) |
Advance Licence where
import takes place prior to fulfillment of export obligation
are to be redeemed by DGFT based on copies of shipping bills
and Bank realisation Certificates. The redemption letter is
issued by DGFT and then Bond/Bank Guarantees is to be cancelled
by Customs. Advance Licences, other than those issued on post-export
basis and which have already been verified byCustoms, are required
to be verified after their redemption by DGFT. Only after such
verification of exports against such licences, Bond/Bank Guarantee
shall be cancelled by Customs. Verification of exports shall
be done by the jurisdictional Commissionerates from where exports
have taken place. In case exports against an Advance Licence
have taken place from two or more Commissionerates, verifications
have to be done by each Commissionerate for the exports from
that Commissionerate for which responsibility would lie with
the exporter. |
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7.2) |
Advance Licences with
the following documents shall be accepted for verification by
the Inspector DEEC on any working day :- |
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- Acknowledgement as prescribed
in Annexure-B for submission of Advance licences for verification.
(in triplicate)
- Index for documents submitted.
- Authorisation letter of the
exporter. If CHA is other than the one engaged at the time
of export shipment, the acceptance of the CHA for undertaking
verification (this is to be signed by proprietor/partner
of the CHA firm).
- Application of the exporter
with the request for verifying the DEEC scrip.
- DEEC statement in duplicate
signed by the licence holder giving details of the shipping
bills.
- Redemption Letter (Export
Obligation Discharge Certificate), in original.
- DEEC copies of S/Bills in
original
- Photocopies of EP copies of
S/Bills
- Original copy of Bill of Lading/Certified
copy of the Bill of Lading.
- Customs attested invoice
- Copies of AR-4/ARE-1, where
applicable
- Copy of test report/Chartered
Engineers Certificate/Technical opinion, as applicable.
- Bank Realization Certificate
- Any other documents (specified
by Customs) required for verification.
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7.3) |
The DEEC Inspector
while receiving Advance Licence shall keep a record in the Redemption
Register, prescribed for the purpose. The receiving Inspector
will verify whether the original Advance licence and all other
required documents have been correctly tendered at the time
of submission. One copy of the acknowledgement as detailed in
Annexure-B shall be given to the person submitting the Advance
Licence indicating therein the Sr.No. and Date of the entry
in receipt register. The other two copies of the acknowledgement
will be retained in the file. The signature of the person submitting
the Advance Licence and Redemption Letter for verification with
his full name, CHA No., and Pass No., shall also be recorded
in the said register. |
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7.4) |
The procedure of verification
of Advance Licence shall be completed by the next day after
the date of receipt of the Advance Licence for verification.
After completion of the verification of the Advance Licence,
the file shall be sent to the Superintendent / Appraiser who
will initiate action immediately for cancellation of the Bond/BG/LUT
. The procedure of cancellation of BG/Bond/LUT will be completed
within 2 days. After cancellation procedure is completed the
cancelled BG/Bond/LUT along with the verified Advance licence
shall be returned only to the person, who had submitted the
Advance Licence for verification, on proper receipts. |
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8)
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The
above instructions may be brought to the notice of all concerned. |
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(A.P.SUDHIR)
COMMISSIONER OF CUSTOMS
BANGALORE
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