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Date: 06-09-2012
Notification No: Customs Circular No 25/2012
Issuing Authority: Indian Customs  
Type: Circular
File No: F. No. 603/03/2011-DBK
Subject: Regarding verification mechanism and monitoring of export obligation under duty exemption/ reward Schemes

Government of India
Ministry of Finance
Department of Revenue
Drawback Division

Circular No. 25 /2012-Cus

New Delhi Dated: 6th September, 2012

To
All Chief Commissioners of Customs/ Central Excise/ Central Excise & Customs,
All Commissioners of Customs/ Central Excise/ Central Excise & Customs,
All Director General of CBEC,
Chief Departmental Representatives of CESTAT

Sir/Madam,

Sub: Verification mechanism and monitoring of export obligation under duty exemption/ reward Schemes- reg.

Reference is invited to Board’s Circular No. 5/2010-Cus dated 16.03.2010. Para 2(c) of the Circular provides that Customs authorities cause random address verification [for some of the authorizations issued under EPCG/ DFIA/ Advance Authorization schemes registered at their port to check correctness of address shown in the authorization] preferably through jurisdictional Central Excise authorities, during validity of the authorization. As far as the EPCG Scheme is concerned, the provision in Para 2(c) of the Circular is in addition to ensuring submission of Installation Certificates (ICs) for capital goods imported and randomly checking correctness of ICs through Central Excise authorities, when the ICs have been issued by other than Central Excise authorities. The Commissioners would be ensuring that above requirements are followed.

  1. The C&AG of India in Audit Report No. 22 of 2011-12 observed that authentication of licencee premises is an important check which makes it possible to verify at any time that imported goods are installed and operated at the declared location. In this connection the Audit has noted that utility bills containing the address can also be used for checks relating to installation and operation of the imported Capital goods.

  2. Keeping the foregoing in view, Board has decided to prescribe that when address verifications or Installation Certificate verifications are requested by the Customs authorities in respect of EPCG authorizations, the Central Excise authorities should include, in their verification, a check of the periodical utility bills (containing the address) as one of the means enabling verification of installation/ operation/ licencee premises.

  3. This Circular may be bought to the notice of all concerned by way of issuing standing order/ instructions/trade notice.

Yours faithfully,
Sd/-
(Ashok Kumar Pandey)
F. No. 603/03/2011-DBK
STO (Drawback)

       

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