Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No.18 / 2010-Customs
159A, North Block,
New Delhi -110001
8th July, 2010.
All Chief Commissioners of Customs / Customs (Prev.).
All Chief Commissioners of Customs & Central Excise.
All Commissioners of Customs / Customs (Prev.).
All Commissioners of Customs & Central Excise.
Subject: Refund of 4% Additional Duty of Customs
(4% CVD) in pursuance of Notification No.102/2007-Customs dated 14.9.2007 –
Special Drive for clearance of pending 4% SAD refund claims - reg.
Sir / Madam,
Your kind attention is invited to the
Notification No.102/2007-Customs dated
14.9.2007 and Board’s
Circulars No.6/2008-Customs dated 28.4.2008 and
No.16/2008-Customs dated 13.10.2008 regarding refund of 4% Additional Duty of
Customs (4% CVD). Attention is also invited to the Board’s
No.24/2007-Customs dated 2.7.2007,
No.22/2008-Customs dated 19.12.2008 and
No.7/2008-Customs dated 28.5.2008 which relate to general refund cases.
- In this regard, several representations from the trade and industry,
associations continue to be received in the Board complaining about the
delay in refund of 4% CVD or denial of the refund on one pretext or the
other, causing them great hardship.
- In view of the fact that all the doubts of the field formations had been
clarified by the Board vide above mentioned Circulars, it is viewed that
there may not be any difficulty in timely disposal of refund claims.
However, on review of the pending refund claims as on 31.3.2010 at major
Custom Houses, it has been noticed that more than 80% of pending claims
relate to 4% CVD cases. Hence, the Board has decided to further simplify the
procedure for claiming 4% CVD refund in the following manner.
- In respect of Accredited Clients registered with Customs in terms of
Circular No.42/2005-Customs dated 24.11.2005 (ACP clients), the amount of 4%
CVD refund shall be sanctioned in full, on preliminary scrutiny of the
following documents: (a) TR-6 Challans (in original) for CVD payment; (b)
VAT/ST payment Challans (in original); (c) summary of sale invoices; and (d)
certificate of statutory Auditor / Chartered Accountant, for correlating the
payment of ST/VAT on the imported goods with the invoices of sale and also
to the effect that the burden of 4% CVD has not been passed on by the
importer to the buyer. The procedure for pre-audit for ACP clients shall be
done away with and detailed scrutiny should be done only at the stage of
post-audit. The refund claims shall be sanctioned within the maximum time
period of 30 days in all such cases.
4.2. Submission of sale invoices shall be required only in electronic form
(CD or other media) in respect of 4% CVD refund cases and submission of
paper documents is accordingly dispensed with.
- In order to enable timely payment of refund in case of 4% CVD, a system
of optional facility of directly crediting the applicant’s bank account,
through RTGS (Real Time Gross Settlement) or NEFT (National Electronics
Funds Transfer) System is being prescribed. This facility is already
functioning in Mumbai Customs Zone-II and has been found useful for the
trade. Hence, Board has decided to extend this facility on optional basis to
all other Customs formations also. Necessary authorisation for payment of
refund amount directly to Bank Account may be taken in such cases from the
importer/ authorised signatory of the importer in the form annexed.
- Some field formations have also raised certain doubts whether the audited
Balance Sheet and Profit and Loss Account have to be examined in respect of
the current financial year for scrutiny of unjust enrichment aspect. It is
stated that a large number of refund claims relating to the current year
were held up for want of such verification. In this regard, the issue has
been examined by the Board and it has been decided that the field formations
shall accept a certificate from Chartered Accountant for the purpose of
satisfying the condition that the burden of 4% CVD has not been passed on by
the importer to any other person. Further, the importer shall also make a
self-declaration along with the refund claim to the effect that he has not
passed on the incidence of 4% CVD to any other person. Hence, there is no
need for insisting on production of audited Balance Sheet and Profit and
Loss Account in these cases. It may also be noted that recently the Board
has also notified the list of documents required to be filed by the
applicant along with the refund claim (Annexure-II) which is also displayed
in the departmental website. Hence, other than these aforesaid documents, no
other document would be required in the normal course of granting 4% CVD
- Board also desires that the Commissioner of Customs shall personally
monitor all cases of 4% CVD refund claims pending for more than 30 days so
as to ensure that these are disposed of within the overall time limit of
- A suitable Public Notice and Standing Order may be issued for the
guidance of the trade and staff. Difficulties faced, if any, in
implementation of this Circular may be brought to the notice of the Board at
an early date.
(R. P. Singh)
F. No. 401/46/2008-Cus.III
Encl: As stated above.
Copy for internal circulation – As usual.
Annexure - I
Authorization for payment of refund amount directly to Bank Account
I.E.C. No. _______________ PAN No. _________________.
Bank Account No.: __________________
Bank Name: ______________________
Bank Address: ______________________
11 digit alphanumeric IFS Code : ________________
I declare that the above particulars are correct. I authorize payment of refund
amount for my refund claims filed at ______________________ Custom House to my
above mentioned Bank Account through NEFT / RTGS after deduction of Bank’s
service charges at the rate of 0.09% and applicable NEFT / RTGS charges as per
Name of the Authorised signatory /
Representative of the Importer
Certified that the above details are correct.
Signature of Bank Branch Manager along with the official Seal
Annexure - II
||Type of refund claim
||Section / notification under which filed
||Illustrative list of documents to be filed by applicant along with Application
for refund claim in prescribed form (Customs Series Form No.102 as given in Part
5 of Customs Manual)
||Refund of 4% SAD
||Notification No. 102/2007-Customs dated 14.9.2007
1. Document evidencing payment of the Special Additional Duty (SAD).
2. Invoices of sale of the imported goods in respect of which refund of the said
SAD is claimed.
3. Documents evidencing payment of appropriate sales tax or value added tax, as
the case may be, by the importer, on sale of such imported goods.
4. Certificate from a statutory auditor / CA who certifies the final accounts in
respect of correlation of VAT payment, payment of 4% SAD amount and unjust
enrichment as prescribed in Board’s circular No.6/2008-Customs dated 28.4.2008
and 16/2008-Customs dated 13.10.2008.
5. Copy of the Consignment Sale Agreement. (in case of sale through consignment
agents / stockists).
6. Self-declaration / Affidavit (for e.g. in case of submission of invoice in
soft form in lieu of paper documents, in case of fulfillment of the doctrine of
unjust enrichment to the effect that the applicant has not passed on the
incidence of 4% SAD to any other person).
7. Any other document considered necessary in support of the claim.