| Date: |
16-05-2002
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| Notification No: |
Customs Circular No 26/2002
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Wrong Availment of DEPB Benefit in respect of Export where Imports were made without Payment of Customs Duty under Notification No. 32/97 dated 1.4.97
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Wrong Availment of DEPB Benefit in respect of Export where Imports were
made without Payment of Customs Duty under Notification No. 32/97 dated 1.4.97
Customs
Circular No. 26 dated 16th May 2002
A
complaint has been received in the Board that many custom houses are allowing
DEPB benefits in respect of exports where import of materials has taken place
without payment of duty in terms of Customs Notification No. 32/97. Customs
Notification No. 32/97 permits import of materials/ components etc. without
payment of customs duty against Bond/ BG for jobbing & re-export within a
special time limit. In other words, materials imported under 32/97 do not pay
any customs duty on re-export the Bond/ BG filed by the party gets redeemed. It
is reported that many parties are wrongly availing DEPB benefits in addition to
the facility of duty free import available under 32/97 and in order to avoid
detection, at the time of export, they do not declare having imported the inputs
without payment of duty.
2.
DEPB benefit is available only when the inputs gone into the manufacture
of export product have suffered duty. Hence, once the party has availed benefit
of customs notification No. 32/97, then he becomes disentitled to DEPB benefit;
the facility available under 32/97 and 34/97 (DEPB Scheme) are exclusive and
independent of each other.
3.
Due care should be taken by Customs at the time of processing export
consignments under DEPB Scheme so as to endure that in cases where imports had
taken place on availing the facility of customs notification No. 32/97, no DEPB
benefit is extended. For the purpose of ease of identification of export
consignments where benefit of customs notification No.32/97 was taken at the
time of import, it should be made mandatory for the party to declare this fact
on the body of the shipping bill alongwith details of materials as imported free
of duty under 32/97.
4.
Suitable trade notice and standing orders for the guidance of trade and
staff may respectively be issued.
5.
Receipt of the Circular may please be acknowledged.
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