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Government of India
Ministry of Finance: Department of Revenue
Central Board of Excise and Customs
(Drawback Division)
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INSTRUCTION
New Delhi dated the 28th September, 2016
To
Principal Chief Commissioners/ Chief
Commissioners
Principal Director Generals/Director
Generals
Principal Commissioners / Commissioners
(All under CBEC)
Ma’am/Sir,
Subject: Discontinuation of practice of making manual debits
on physical copy of Advance Authorizations registered at EDI Customs
port-reg.
It was brought to Board’s notice that even for Advance Authorizations
registered electronically at EDI Customs location i.e. where electronic
ledger gets maintained, the physical authorizations, that are
simultaneously issued and presented, are endorsed by Customs with manual
debits of usage and this practice is not uniformly followed at all EDI
ports of registration. It was informed that such manual endorsements
replicate work, cause delay, and at times also lead to errors, all of
which impose transaction costs on trade.
2. The matter was reviewed by the Board by obtaining inputs from
field formations and the DGFT. Taking the overall picture into account
that normally only few advance authorization holders registered for
imports want to simultaneously avail domestic sourcing on the same
authorisation, the Board, as a measure of enhancing the ease of doing
business for exporters has decided that the practice of evidencing
debits manually on physical copy of Advance Authorization shall be
discontinued with respect to future authorizations electronically
registered at Customs EDI locations. Henceforth, the officer examining
the imported goods and/ or giving Out-of-Charge order shall also
re-check that the proper debit of the authorisation in the EDI system
has been made.
3. Once the manual debits on physical copy are discontinued as
mentioned in para 2 above, if a holder of Advance Authorisation is
desirous of obtaining ARO/Invalidation letter etc. for domestic sourcing
from the Regional Authority (which issued the authorisation of DGFT), it
is required to request the Group DC/AC to issue an Advice Letter for the
intended quantity and value (which AC shall update in the record) in
favour of the concerned Regional Authority and thereafter, the holder of
Advance Authorization may apply (based on the Advice Letter) to the
Regional Authority to issue ARO etc. The DC/AC should ensure that
requests for such Advice Letter are processed immediately and the Advice
issued on the same day. A copy of the Advice Letter issued shall be
replicated to the official email of the RA concerned from the official
email of the Group DC/AC and record thereof placed with the office copy
of the Advice Letter. This is to obviate need for verification of Advice
Letter by the RA concerned which causes delay and to prevent fraud. The
Commissioner shall designate the Addl/Joint Commissioner in-charge of
the advance authorization group for monitoring such cases and to
coordinate with Regional Authorities where necessary.
4. In the light of this change, in case the Commissioner of Customs
at port of EDI registration of advance authorization decides to permit
clearance manually at the time of an EDI breakdown it may take suitable
safeguard and also ensure subsequent entry of debits on EDI for proper
accounting.
5. It may be noted that the change does not effect the use of TRA
facility at non-EDI port w.r.t. advance authorisation registered at EDI
Customs location, since the authorisation gets debited in EDI System at
the EDI port of registration and only the advice for release moves to
the non-EDI port.
6. The physical advance authorizations which DGFT is issuing,
concurrently with electronic transmission of certain types of
authorizations, shall continue to be presented for the time being, till
DGFT’s electronic transmission to Customs server includes certain
details being specified by licensing authorities such as the higher bank
guarantee or cash security than normally due (including no bank
guarantee) or the additional conditions imposed such as restricted
export obligation periods or absence of facility of extension of EO
period in case of certain products, details of invalidation for domestic
procurement prior to EDI registration at port of import, etc. This
aspect would be separately reviewed with DGFT.
7. These instructions shall be brought to the notice of all stake
holders through issuance of Public Notice by Commissioners. The Public
Notice should be forwarded to all Regional Authorities/Zonal Officers of
the DGFT. Suitable Standing Orders for guidance of officers should also
be issued. Difficulty, if any, may be brought to notice of the Board.
(Dinesh Kumar Gupta)
Director
Tel: 23360581
F.No.605/30/2015-DBK
Copy to:
The Director General of Foreign Trade, Udyog Bhawan, New Delhi. The
Board requests for suitable advise to the Regional Authorities.
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