Instances have come to notice of the Department where DEPB scrips were obtained by unscrupulous exporters by presenting S/ Bs with forged examination reports and 'let export' orders alongwith forged BRCs, etc. In some of such cases even the verification endorsements by Customs authorities on DEPB scrips have been apparently forged. It has, therefore, become necessary to revise and tighten the procedure for verification of DEPB scrips.

2.      In view of this, a tighter procedure for verification of DEPB scrips has been adopted at Mumbai Custom House. A copy of the standing order issued by Commissioner of Customs, Mumbai is enclosed.

3.      The issue has been examined in the Board and it has been decided that all the Custom Houses should adopt the same procedure as adopted by Mumbai Custom House for verification of DEPB scrips registered with them. However, the back-up data which is being maintained by Mumbai Custom House on Sperry Computer, may be maintained at other Custom Houses on the Sperry System/ EDI System/ Manual Registers, and the details in the DEPB scrip must be verified with reference to such data in the Custom House Computer/ Registers, and the details in the DEPB scrip must be verified with reference to such data in the Custom House Computer/ Registers in line with the procedure enclosed.

1.      Some instances have come to notice of the department where DEPB Scrips were obtained by unscrupulous exporters by presenting S/ Bs with forged examination reports and let export orders alongwith forged BRCs etc, from the local offices of DGFT. In some of such cases even the verification endorsements by Custom authorities on DEPB Scrips have been apparently forged. It has become necessary to revise and tighten the procedure for verification of DEPB Scrips. The following procedure shall henceforth be followed in modification and suppression of the procedure followed hitherto.

2.      DEPB Scrips with prescribed documents (DEPB copies of S/ Bill in original, photocopies of EP copies of S/ Bills, Bills of lading evidencing shipment of goods and customs attested invoices) shall be accepted for verification by the designated counter clerk in Group VII only from 10.00 am. To 3 p.m. on each working day. The receipt clerk shall while receiving DEPB Scrips keep a record in the register in the proforma prescribed vide Annexure 'A'. An acknowledgment in the proforma at Annexure 'B' shall be given to the person submitting the DEPB Scrips indicating therein the Sr. No. and date of the entry in receipt register. The signature of the person submitting the DEPB for verification with his full Name, CIA No. and Pass No. shall also be recorded in the said register.

3.      All DEPB Scrips received shall be distributed by the receipt clerk amongst alphabet clerks simultaneously who shall enter DEPB particulars in the alphabet register against respective S/ Bills immediately on receipt. Thereafter, DEPB verification files shall be given by alphabet clerks to the Examiners according to alphabet-wise distribution already in force. This distribution should be completed before 5 o'clock on the same day. The Examiners shall personally verify the particulars of S/ Bs from the data available in computer and ensure that goods covered by the S/ B have already been shipped and so figure in the revelant EGM. In other words, they must compare the name of the exporter, description of the goods, number of packages, security number of the S/ Bills, date of sailing, etc., with the data available on computer. In case of any discrepancy, particulars should be verified from the hard copy of the discrepancy, particulars should be verified from the hard copy of the EGM till the system of entering EGM details in the computers is put in place. After verification of shipment details, the E.O's will also check the correctness of credit permitted in the DEPB and hand over the files to respective Appraisers as per distribution on the same day with endorsements in respective files. They shall also sign in full on reverse of DEPB at the prescribed place in token of having completed verification. All DEPB copies of S/ Bills shall be defaced by drawing two red lines diagonally on the entire length of S/ Bills.

4.      The Appraisers shall scrutinise the file to ensure that proper verification of fact of shipments has been completed by the Examiner and then check the correctness of DEPB rates having been applied for grant of credit. After verifying the correctness of the DEPB Scrips in all respects, file shall be submitted by them to the Asstt. Commissioner with full signature on the reverse of DEPB Scrip. The Asstt. Commissioner shall also countersign the DEPB Scrip in full at the prescribed place. Process of verification by Appraisers and counter-signature by the Asstt. Commissioner should be completed on the same day i.e. on the day after receipt of DEPB and the file shall be returned to the dealing Examiner by the afternoon.

5.      On receipt of files duly countersigned by Appraisers and Asstt. Commissioners on the DEPB Scrips, the Examiners shall register all DEPB Scrips, which have been verified, in the computer system and registration No. and date shall also be endorsed on the reverse of DEPB Scrips Verified DEPB Scrip shall thereafter be embossed by perforated stamp in the Cash Section under personal supervision of the concerned Examiner. This process should be completed latest by 12 o'clock on the third day. Duly verified and embossed DEPB Scrips shall thereafter be handed over to receipt clerk who shall detach the DEPB Scrip from the files and return the files to Examiner for safe custody.

6.      Duly verified DEPB Scrips detached by receipt clerk shall be distributed across the counter to the persons whom the scrips were received in the afternoon between 3 p.m. to 5 p.m. Accordingly, scrips received on a particular day shall be verified and distributed on the 3rd day i.e., scrips received on Monday forenoon shall be distributed on Wednesday afternoon whereas scrips received on Friday forenoon shall be distributed on Tuesday afternoon. This scrip shall be delivered against surrender of acknowledgment issued to the person who had submitted the DEPB Scrips for verification and his signature in token of having collected the DEPB Scrip shall be obtained in the same register. DEPB Scrip should be delivered only to the person who had submitted the same for its verification and not to any other person. DEPB Scrip not collected on the due day shall be kept by the receipt clerk in his safe custody under lock and key. The DEPB Scrips not collected within 7 days of submission should be entered in a separate register, which should be put to A C (Admn) for his information and directions on every Monday of the week.

7.      In terms of condition (vii) of Notification No. 34/ 97-Cus dated 7/ 4/ 97 governing exemption from duty under DEPB Scheme, where benefit of exemption from duty is claimed by a person, who is not a DEPB holder, such benefit shall be admissible only against a specific amount of credit, not being a provisional credit, transferred by DEPB holder to such person. This means that clearance against DEPB to any person other than DEPB holder can be permitted only against specific amount of credit transferred by the DEPB holder himself. Hitherto, Custom House has been permitting clearance against DEPB transferred to the importer through intermediaries i.e. even in cases where DEPB was transferred by a DEPB holder to a third person who in turn transfers it to some other persons and ultimately to the importer. However, this is not the intention of the said Customs Notification. It is, therefore, certified that henceforth exemption of duty in terms of Notification No. 34/ 97-Cus shall be permitted to a person other than a DEPB holder only where a specific amount of DEPB credit has been transferred by the DEPB holder to the importer directly.

8.      All debits of DEPB shall henceforth be made on computer with reference to Registration No. allotted at the time of verification by the Examiner. The Bills of Entry after assessment by Appraisers and countersignature by Asstt. Commissioner shall be presented for debit in the computer cabin on 4th floor of the Annexe Building. DEPB debit in the computer system shall be in addition in the ledger registers being maintained at present, till further orders.

9.      DEPB Scrips verified either at Sahar or Nhava Sheva or Mumbai Custom House can be registered at any one of these places according to the system prevalent at present. The DEPB Scrips once registered at any of these places shall be debited only at the respective place and clearance of goods, if desired, from the place other than the place of registration, shall be allowed only against Release Advise. The earlier instructions contained in PN 93/ 98 dated 4/ 10/ 98 dispensing with Release Advise in case of DEPB Scrips verified and embossed with perforated stamp are hereby withdrawn. The above procedure comes into force with immediate effect.

10.    This issues with the approval of the Chief Commissioner of Customs, Mumbai Zone, and would be equally applicable for Air Cargo Complex. Sahar and Jawaharlal Nehru Port Trust Nhava Sheva.

ANNEXURE 'B'

Received DEPB No. _______________ dated ____________ for verification which has been conferred in the prescribed register at Sr. No. ____________ Verified DEPB may be collected between 2 P.M. to 4 P.M. on __________ by the person who has submitted the same.

(Counter Clerk)