Government of India
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi-110011
Policy Circular No. 44 (RE-2010)/2009-14
Dated: 01.11.2011
To
All Regional Authorities (RAs);
All Commissioners of Customs;
Exporting Community.
Subject: Grant of DEPB against free Shipping Bills converted by the Customs
Authorities.
Para 2.56 of HBP v.1 provides for conversion of EP copy of the Shipping Bill
from one scheme to another. The relevant portion of the para is extracted
below:-
“Conversion of E.P. copy of shipping bill from one Scheme to Another:
If Customs Authorities, after recording reasons in writing, permit conversion of
an E.P. copy of any scheme-shipping bill on which benefit of that scheme has not
been availed, exporter would be entitled to benefit under scheme in which
shipment is subsequently converted”.
- Conversion of free shipping bills to DEPB Shipping Bills were allowed
by the Department of Revenue vide
Customs Circular No.6/2003-Cus. dated
28.1.2003 whereby Commissioner of Customs were given powers to allow such
conversions. In accordance with the instructions, conversions were done by
Customs. Subsequently, vide
Circular No.4/2004-Cus. dated 16.1.2004 the
facility to allow the conversion of free shipping bills to export promotion
schemes were withdrawn. In this background, instructions were issued to the
Regional Authorities not to grant DEPB benefits against such shipping bills
which were converted by the Customs authorities. Some of the exporters
approached High Courts claiming that DEPB should be given in cases where the
conversions have been allowed by Customs.
- In a case filed by M/s. Estocorp (India) Pvt. Ltd., the Delhi High Court
(in a Writ Petition No.14367/2005) allowed the claim of the petitioner for
grant of DEPB against converted shipping bills. In their order dated
3.2.2011, the High Court observed that since the petitioner got the shipping
bills converted prior to issue of
Customs Circular No.4/2004 dated
16.1.2004, the claim cannot be denied.
- Therefore, between the two material dates i.e. between 28.1.2003 and
15.1.2004, in case if the Commissioner of Customs has already allowed the
conversion of free Shipping Bill to DEPB Shipping Bill, the DEPB claims can
be admitted. Accordingly, RAs are instructed to decide the admissibility of
DEPB claims. Old cases which were rejected can also be reviewed.
This issues with the approval of competent authority.
Sd/-
(C. Gangadharan)
Dy. Director General of Foreign Trade
Tele No. 23061562 Ext.250
Email: c.gangadharan@nic.in
(Issued from F. No. 01/94/180/597/AM’11/PC-IV)