Government of India Ministry of Finance Department of Revenue
(Central Board of Excise and Customs)
Circular No. 26/2017-Customs
New Delhi dated the 1st July, 2017
To,
All Principal Chief Commissioner/Chief Commissioner of Customs &
Central Excise All Principal Commissioner/Commissioner of Customs & Central
Excise All Principal Chief Commissioner/Chief Commissioner of Customs/Customs
(Preventive) All Principal Commissioner/Commissioner of Customs / Customs
(Preventive)
Sir/ Madam,
Subject: Export procedure and sealing of containerized cargo-regarding
Goods and Service Tax has become operational from 01st July, 2017. In the GST
regime, the governing provisions related to exports are contained in section 16
of the Integrated Goods and Service Tax Act, 2017 (IGST Act). Supplies of goods
and services for exports have been categorized as 'Zero Rated Supply' implying
that goods could be exported under bond or Letter of Undertaking without payment
of integrated tax followed by claim of refund of unutilized input tax credit or
on payment of integrated tax with provision for refund of the tax paid.
2. With the onset of GST, extant procedures relating to export of goods viz.
claim of rebate/refund, stuffing of containers at the factory, warehouse or any
other place from where the goods are intended to be exported etc. would require
review of the existing procedures. In this regard, attention is drawn to
notification
No's 42/2001-CE (N.T.) to 45/2001-CE (N.T.) both dated 26th June, 2001
detailing the procedure to be followed for the export of goods on payment of
terminal excise duty and
19/2004-CE (N.T.) and
20/2004-CE (N.T.), both dated
06th Sep, 04, without payment thereof.
A. Procedure of Export
3. Any person making zero rated supply (i.e. any exporter) shall be eligible
to claim refund under either of the following options, namely: -
(a) he may supply goods or services or both under bond or Letter of
Undertaking, subject to such conditions, safeguards and procedure as may be
prescribed, without payment of integrated tax and claim refund of unutilized
input tax credit; or
(b) he may supply goods or services or both, subject to such conditions,
safeguards and procedure as may be prescribed, on payment of integrated tax and
claim refund of such tax paid on goods or services or both supplied, in
accordance with the provisions of section 54 (Refunds) of the Central Goods and
Services Tax Act or the rules made there under (i.e. the Central Goods and
Service Tax Rules, 2017).
4. For the option (a) above, procedure to file refund has been outlined in
the Central Goods and Service Tax Rules, 2017. The exporter claiming refund of
unutilized input tax credit will file an application electronically through the
Common Portal, either directly or through a Facilitation Centre notified by the
GST Commissioner. The application shall be accompanied by documents as
prescribed in the said rules. Application for refund shall be filed only after
the export manifest or an export report, as the case may be, is delivered under
section 41 of the Customs Act, 1962 in respect of such goods. The formats for
furnishing bond or LUT for export of goods have been separately notified under
COST Rules, 2017. The said formats are attached herewith for easy reference.
5. For the option (b), broadly the procedure is that a registered person
shall not be required to file any application for refund of integrated goods and
services tax paid on supply of goods for exports. The shipping bill, having
inter-alia GST invoice details, filed by an exporter shall be deemed to be an
application for refund of integrated tax paid on the goods exported out of India
and such application shall be deemed to have been filed only when the person in
charge of the conveyance carrying the export goods duly files an export manifest
or an export report covering the number and the date of shipping bills or bills
of export and the applicant has furnished a valid return in FORM GSTR-3. The
details of the relevant export invoices contained in FORM GSTR-1 shall be
transmitted electronically by the common portal to the Customs system and the
said system shall in turn electronically transmit back to the common portal a
confirmation that the goods covered by the said invoices have been exported out
of India. Upon receipt of information regarding furnishing of valid return in
FORM GSTR-3 from the common portal, the Customs system shall process the claim
for refund and an amount equal to the integrated tax paid in respect of each
shipping bill or bill of export shall be electronically credited to the bank
account of the applicant mentioned in his registration particulars. Government
has allowed a grace period to the registrants to file returns under the new GST
Law. Therefore, this refund procedure shall as a consequence come into operation
only when the registrants file the above mentioned returns. Further, the
exporters are free to avail option (a) or option (b). The refund shall be
governed by the provisions of the section 16 of the IGST Act.
6. In order to ensure smooth transition from the earlier export procedure to
the procedure being laid down for export of goods under the GST regime, the
existing Shipping Bill formats (both manual/ electronic) have been modified to
make them compliant with the IGST law. New formats of the Shipping Bill have
been made applicable already. ARE-1 procedure which was being followed is
dispensed with except in respect of commodities to which provisions of Central
Excise Act would continue to be applicable.
B. Sealing of Containers7. Board has in the past issued various circulars
both on the Excise and Customs side on the issue of sealing of containers. A
gist of these Circulars and the subject matter dealt in them is given in the
annexure to this circular. At present, there are three categories of containers
which arrive at the port/ICD:
a. Containers stuffed at factory premises or warehouse under self-sealing
procedure.
b. Containers stuffed / sealed at factory premises or warehouse under
supervision of central excise officer.
c. Containers stuffed and sealed at Container Freight Stations/ Inland
Container Depot.
8. For the sake of uniformity and ease of doing business, Board has decided
to simplify the procedure relating to factory stuffing hitherto carried out
under the supervision of the Central Excise officers. It is the endeavor of the
Board to create a trust based environment where compliance in accordance with
the extant laws is ensured by strengthening Risk Management System and
Intelligence setup of the department. Accordingly, Board has decided to lay down
a simplified procedure for stuffing and sealing of export goods in containers
9. It has been decided to do away with the sealing of containers with export
goods by CBEC officials. Instead, self-sealing procedure shall be followed
subject to the following:
(i) The exporter shall be under an obligation to inform the details of the
premises whether a factory or warehouse or any other place where container
stuffing is to be carried out, to the jurisdictional customs officer.
(ii) The exporter should be registered under the GST and should be filing
GSTRI and GSTR2. Where exporter is not a GST registrant, he shall bring the
export goods to a Container Freight Station/Inland Container Depot for stuffing
and sealing of container. However, in certain situations, an exporter may follow
the self-sealing procedure even if he is not required to be 111. IV. registered
under GST Laws. Such an exception is available to the Status Holders recognized
by DGFT under a valid status holder certificate issued in this regard.
(iii) Any exporter desirous of availing this procedure shall inform the
jurisdictional Custom Officer of the rank of Superintendent or Appraiser of
Customs, at least 15 days before the first planned movement of a consignment
from his/her factory/ premises, about the intention to follow self- sealing
procedure to export goods from the factory premises or warehouse. The
jurisdictional Superintendent or an Appraiser or an Inspector of Customs shall
visit the premises from where the export goods will be stuffed & sealed for
export. The jurisdictional Superintendent or Inspector of Customs shall inspect
the premises with regard to viability of stuffing of container in the premises
and submit a report to the jurisdictional Deputy Commissioner of Customs or as
the case may be the Assistant Commissioner of Customs within 48 hours. The
jurisdictional Deputy Commissioner of Customs or as the case may be the
Assistant Commissioner of Customs shall forward the proposal, in this regard to
the Principal Commissioner/Commissioner of Customs who would grant permission
for selfsealing at the approved premises. Once the permission is granted, the
exporter shall furnish only intimation to the jurisdictional Superintendent or
Customs each time self-sealing is carried out at approved premises. The
intimation, in this regard shall clearly mention the place and address of the
approved premises, description of export goods and whether or not any incentive
is being claimed.
(iv) Where the visit report of the Superintendent or an Appraiser or an
Inspector of Customs regarding viability of the stuffing at the factory/
premises is not favorable, the exporter shall bring the goods to the Container
Freight Station /Inland Container Depot/Port for sealing purposes.
(v) Self-Sealing permission once given by a Principal
Commissioner/Commissioner of Customs shall be valid for export at all the
customs stations. The customs formation granting the selfsealing permission
shall circulate the permission along with GSTIN of the exporter to all Custom
Houses/Station concerned.
(vi) Transport document for movement of self-sealed container by an exporter
from factory or warehouse shall be same as the transport document prescribed
under the GST Laws. In the case of an exporter who is not a GST registrant, way
bill or transport challan or lorry receipt shall be the transport document.
(vii) The exporter shall seal the container with the tamper proof
electronic-seal of standard specification. The electronic seal should have a
unique number which should be declared in the Shipping Bill. Before sealing the
container, the exporter shall feed the data such as name of the exporter, IEC
code, GSTIN number, description of the goods, tax invoice number, -q- name of
the authorized signatory (for affixing the e-seal) and Shipping Bill number in
the electronic seal. Thereafter, container shall be sealed with the same
electronic seal before leaving the premises.
(viii) The exporter intending to clear export goods on self-clearance
(without employing a Customs Broker) shall file the Shipping Bill under digital
signature.
(ix) All consignments in self-sealed containers shall be subject to risk
based criteria and intelligence, if any, for examination / inspection at the
port of export. At the port/ICD as the case may be, the customs officer would
verify the integrity of the electronic seals to check for tampering if any
enroute. The Risk Management System (RMS) is being suitably revamped to
improvise the interdiction/ examination norms. However, random or intelligence
based selection of such containers for examination/scanning would continue.
10. Board has decided that the above revised procedure regarding sealing of
containers shall be effective from 01.09.2017. A future date has been prescribed
since the returns under GST have been permitted to be filed by 10.09.17 and also
with the purpose to give enough time to the stakeholders to adapt to the new
procedures. Therefore, as a measure of facilitation, the existing practice of
sealing the container with a bottle seal under Central Excise supervision or
otherwise would continue. The extant circulars shall stand modified on
01.09.2017 to the extent the earlier procedure is contrary to the revised
instructions given in this circular.
11. Suitable public Notices may be issued in this regard. Difficulty faced,
if any, may be brought to the notice of the Board.
12. Hindi version will follow.
Yours faithfully, (Zubair Riaz) Director (Customs) [F. No.
450/08/2015-Cus.IV ]
Annexure
sr. No |
Reference Number |
Date |
Subject |
1 |
952/1 3/2011-CX |
08-09-11 |
Stuffing of export containers - Procedure |
2 |
892/1 2/2009-CX |
23-07-09 |
Exports - Self-sealing/certification facility extended for export
ofnonxcisable agricultural products |
3 |
860/1 8/20,07-CX |
22-11-07 |
Exports under Free Shipping Bills - Mandatory self-sealing of
containers |
4 |
741/57/2003-CX |
02-09-03 |
Exports to Nepal and Bhutan - Self-sealing and self-certification
facility not applicable |
5 |
736/52/2003-CX. |
11-08-03 |
Exports - Self-certification and self-sealing facility extended to
all categories of Manufacturer-Exporters-Extension of facility of
selfsealing to all categories of manufacturer exporters. |
6 |
481/47/99-CX |
23-08-99 |
Containers Sealing of packages/Containers procedure Relaxed-modifies
426/59/98-CX in so far as furnishing tentative date and time of export
plan by manufacturer exporter is concerned. |
7 |
445/11/99-CX |
17-03-99 |
Exports Special facility of self-certification and self-sealing to
large manufacturer Exporter Further instructions. Para 7 (duty of
customs officers at the place of export) of 426/59/98-CX is deleted in
view of Circular 6/2002-Cus. [90/98-cus. was rescinded vide
31/2002-cus]. |
8 |
426/59/98-CX |
12-10-98 |
Introduction of facility of self-sealing to manufacturers who have
paid Central Excise duty exceeding Rs. 10 crores in the preceding
financial year in cash or by debit in current account or
manufacturer-exporters who have been accorded the status of Super Star
Trading House, Star Trading House, Trading House or Export House under
the provisions of the Export - Import Policy announced by the Government
from time to time. |
9 |
6/2002-Cus |
23.1.2002 |
Export- procedure, as also norms for examination of self-sealed
containers at the port of export. |
10 |
83/99-Cus |
14-12-99 |
9 Export Simplification in procedure for movement of export goods on
the basis of. Self-certification and reduced percentage of physical
examination-Dispensing off with routine examination at gateway ports |
FORM GST RFD-11
Furnishing of bond or Letter of Undertaking for export of goods or services
Note - Hard copy of the bank guarantee and bond shall be furnished to the
jurisdictional officer.
5. Declaration -
(i) The above-mentioned bank guarantee is submitted to secure the integrated
tax payable on export of goods or services, (ii) I undertake to renew the
bank guarantee well before its expiry. In case I/We fail to do so the department
will be at liberty to get the payment from the bank against the bank guarantee,
(iii) The department will be at liberty to invoke the bank guarantee provided by
us to cover the amount of integrated tax payable in respect of export of goods
or services.
Signature of Authorized Signatory
Name Designation / Status
-------- Date----------------
Bond for export of goods or services without payment of integrated tax
(See
rule 96)
I/We of. hereinafter called "obligor(s)", am/are held and firmly bound to the
President of India (hereinafter called "the President") in the sum of. rupees to
be paid to the President for which payment will and truly to be made.
I/We jointly and severally bind myself/ourselves and my/our respective heirs/
executors/ administrators/ legal representatives/successors and assigns by these
presents; Dated this day of. ;
WHEREAS the above bounden obligor has been permitted from time to time to
supply goods or services for export out of India without payment of integrated
tax; and whereas the obligor desires to export goods or services in accordance
with the provisions of clause (a) of sub-section (3) of section 16
AND WHEREAS the Commissioner has required the obligor to furnish bank
guarantee for an amount of. rupees endorsed in favour of the President and
whereas the obligor has furnished such guarantee by depositing with the
Commissioner the bank guarantee as afore mentioned; The condition of this bond
is that the obligor and his representative observe all the provisions of the Act
in respect of export of goods or services, and rules made thereunder;
AND if the relevant and specific goods or services are duly exported; AND if
all dues of Integrated tax and all other lawful charges, are duly paid to the
Government along with interest, if any, within fifteen days of the date of
demand thereof being made in writing by the said officer, this obligation shall
be void;
OTHERWISE and on breach or failure in the performance of any part of this
condition, the same shall be in full force and virtue:
AND the President shall, at his option, be competent to make good all the
loss and damages, from the amount of bank guarantee or by endorsing his rights
under the above-written bond or both;
I/We further declare that this bond is given under the orders of the
Government for the performance of an act in which the public are interested;
IN THE WITNESS THEREOF these presents have been signed the day hereinbefore
written by the obligor(s).
Signature(s) of obligor(s). Date: Place : Witnesses (1) Name and
Address (2) Name and Address
Occupation Occupation
Accepted by me this ..................................................day of
(month)......................................(year) .
......................................of......................................................(Designation)
for and on behalf of the President of India.".
Letter of Undertaking for export of goods or services without payment of
integrated tax
(See rule 96)
To
The President of India (hereinafter called the "President"), acting through
the proper officer
I/We of. (address of the registered person) having Goods & Services Tax
Identification Number No , hereinafter called "the undertaker(s) including
my/our respective heirs, executors/ administrators, legal
representatives/successors and assigns by these presents, hereby jointly and
severally undertake on this day of to the President
I/We...........................................................................
of.................................................................. (address of
the registered person) having......................... Goods...................
&......................... Services................................. Tax
Identification Number No.................................... , hereinafter
called "the undertaker(s) including my/our respective heirs, executors/
administrators, legal representatives/successors and assigns by these presents,
hereby jointly and severally undertake on
this...................................................................... day
of to the President
(a) to export the goods or services supplied without payment of integrated
tax within time specified in sub-rule (9) of rule 96 ;
(b) to observes all the provisions of the Goods and Services Tax Act and
rules made thereunder, in respect of export of goods or services;
(c) pay the integrated tax, thereon in the event of failure to export the
goods or services, along with an amount equal to eighteen percent interest per
annum on the amount of tax not paid, from the date of invoice till the date of
payment.
I/We declare that this undertaking is given under the orders of the proper
officer for the performance of enacts in which the public are interested.
IN THE WITNESS THEREOF these presents have been signed the day hereinbefore
written by the undertaker(s)
Signature(s) of undertaker(s).
Date : Place :
Witnesses (1) Name and Address (2) Name and Address Date: Place:
Occupation Occupation
Accepted by me this..............................................day of
..............................................................................(month).....................................................(year)
......................................................of
......................................................(Designation) for and
on behalf of the President of India
|