Government of India
Ministry of Finance
Department of Revenue
Instruction
New Delhi, the 18th January, 2011
To,
All Chief Commissioners of Customs / Customs & Central Excise,
All Directors General of CBEC/CDR, CESTAT,
All Commissioners of Customs / Customs & Central Excise.
Sir/Madam,
Sub: Progress in the implementation of the Bank Realization Certificate
(BRC)Module.
I am directed to invite your attention to Board’s
circular No. 5/2009-Cus dated
02.02.2009 whereby the Bank Realization Certificate (BRC) module for monitoring
export realizations against shipments made under the Drawback scheme was
implemented. The circular required that the export realizations in respect of
all drawback shipments made during 01.01.2004 to 31.12.2007 should be checked
and for exports during the subsequent period such verification/checking should
be done for drawback shipments every six months.
- The Public Accounts Committee (PAC) has on more than one occasion expressed
concerns about the lack of action being taken in the case of non-realization of
foreign exchange in respect of consignments exported under the Drawback Scheme.
Keeping in view the statutory requirement of monitoring realization of export
proceeds and the concerns of PAC, a review of the implementation of the said
circular was conducted by the Board.
- It is desired that the aforesaid module should be implemented by all Custom
Houses earnestly. Complete and effective implementation would mean that there
should not remain any cases in the Custom Houses where the realization has
become due but the exporter has not submitted BRC /negative statement and the
SCN for such non submission has not been issued within a reasonable time. Thus,
the work of feeding the details of BRCs/negative statements into the system and
of issuing Show Cause Notices (SCNs) to exporters wherever they are not
submitted and taking further action including adjudication of the cases for
recovery of drawback has to be accomplished in a methodical and time bound
manner.
- It has been reported by some Custom Houses that in many cases, the show cause
notices, which have been issued for non-submission of BRCs/negative statements,
have returned undelivered as the recipient/address was non-existent. In this
regard, it is desired that the Commissionerates should set up an institutional
mechanism to liaise regularly with Regional Licensing Authorities (RLAs). The
names of such exporters should be reported to the RLAs at regular intervals or
during joint review meetings so that action can be taken against them and their
IE Codes got cancelled for furnishing wrong addresses to DGFT / Customs. The
Board may also be kept informed so that the matter can also be taken up with the
DGFT.
- These instructions may be brought to the notice of the officers by issuing
suitable instructions for the guidance of the assessing officers. Difficulties
faced, if any in implementation of the Instructions may please be brought to the
notice of the Board at an early date.
- Receipt of this Instruction may kindly be acknowledged.
Yours faithfully,
(PRAMOD KUMAR)
(TECHNICAL OFFICER)
F.No. 609/119/2010-DBK