Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs
Drawback Division
Circular No. 04 /2014-Customs
New Delhi, dated the 10th February, 2014
To
All Chief Commissioners of Customs / Customs (Prev)/ Central Excise & Customs,
All Directors General / Chief Commissioner (AR), CESTAT,
All Commissioners of Customs / Customs (Prev)/ Customs & Central Excise/
Commissioners (Appeals)
Ma’am/Sir,
Subject: Export of a prohibited item under Advance Authorization – Reg.
The Department of Revenue has issued
notification no. 01/2014-Customs dated
17.01.2014 to implement changes in the Foreign Trade Policy (2009-14) which have
been made vide Department of Commerce
Notification No. 51(RE-2013)/2009-2014
dated 14.11.2013 read with DGFT’s Public Notice
No.37/2009-2014(RE-2013) dated
14.11.2013.
- The changes in the FTP provide for permitting the export of items which are
otherwise prohibited for export, namely, items falling under Chapter 7 and 15 of
ITC (HS) Schedule 2, under the Advance Authorization Scheme with specific
conditions that are stricter than under a normal Advance Authorization. In such
cases, the Advance Authorization will contain specific mention of the Public
Notice No. 37/2009-2014(RE-2013) dated 14.11.2013.
- Amongst the stricter conditions are – (a) export is subject to pre-import
condition and the resultant product exported has to be manufactured out of the
raw material already imported under the scheme (b) there has to be notified
SION/prior fixation of norms by Norms Committee in terms of Para 4.4.2 of HBP
Vol.1 (c) the Import/Export is permitted only through specific EDI enabled ports
(d) EO period is 90 days from the date of clearance on import with no extensions
(e) facility of regularisation of bonafide defaults under para 4.28 of HBP vol.1
is not available (f) imported material is subject to actual user condition and
no transfer for any purpose, including job work, is permitted (g) imported
material found defective or unfit for use has to be re-exported within thirty
days, extendable by another thirty days.
- Further, at the time of export an undertaking from the authorization holder
has been prescribed to the effect that the resultant products, being exported
against the authorization, which is otherwise prohibited for export, has been
manufactured from the material already imported under the authorization. This
undertaking is to also contain details of imports and exports made under the
authorization. This condition has been prescribed to enable the customs officer
to form a reasonable satisfaction that the goods under export are not the
prohibited goods. The officer is to record suitable comments in this regard in
the EDI field for departmental comments.
- The field formations may also keep in view the
Circular No. 5/2010-Cus dated
16.3.2010 and
instruction no. 609/119/2010-DBK dated 18.1.2011.
- This may be brought to the notice of the trade by issuing suitable Trade/
Public Notices. Officers may be suitably guided through Standing Orders.
Difficulties faced, if any, in implementation of the Notification may be brought
to the notice of the Board at an early date.
Yours faithfully,
(Dinesh Kumar Gupta)
Director (DBK)
Tele: 23360581
F.No.605/27/2013-DBK