Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs
Drawback Division
***
Instruction
4th Floor, Jeevan Deep Building,
Sansad Marg, New Delhi
Dated: 27 May, 2014
To
Chief Commissioners of Customs/ Customs (Prev.)/ Central Excise & Customs (All)
Directors General of CBEC (All) / Chief Commissioner (A.R.)
Commissioners of Customs/ Central Excise & Customs (All)
Madam/ Sir,
Subject: Differences between duty credit scrips and goods
permitted/not-permitted against them under respective FTP paragraphs/Customs
Notification - regarding
Attention of field formations is drawn to the fact that diverse types
of duty credit scrip are issued under relevant paragraphs of Foreign Trade
Policy. These duty credit scrips have varying degrees of transferability/actual
user conditions that, inter alia, determine which person may use the scrip and,
at times, for what purpose. Further, in relation to goods, the respective reward
schemes/scrips prescribe the specific nature of goods permitted to be imported
against the particular duty credit scrip. There may also be specification in
respective reward/ incentive scheme of certain types of goods in relation to
which duty credit scrip may not at all be used, for example, the items listed in
Appendix 37B of HBPv1, and the use of scrips for such items would not be
correct. Such aspects are also incorporated as conditions in the implementing
Customs or Central Excise notifications. Moreover, such restrictions on which
person may use or in relation to which goods scrip may be used, being intrinsic
to the respective reward/ incentive scheme, continue to operate even when duty
credit scrip is to be allowed for use for discharging duty on already imported
goods in cases of export obligation in default.
2. Board has come across a few instances of incorrect usage of duty credit
scrips on above counts. Further, in one case the duty credit scrip issued under
one scheme was detected to have been allowed registration (and use) as duty
credit scrip of another scheme without the field formation noticing the mismatch
between scrip/ scheme name and Customs notification number endorsed by the
issuing Regional Authority of DGFT. It is also noted that the Board’s
Circular
No.8/2009 dated 16.2.2009 had earlier, in a general context, highlighted to the
field formations the issue of there being differences in the scrips and the
goods permitted under respective policy paragraphs.
3. Board instructs that due care and diligence be exercised in the above matter
by field formations.
Yours faithfully,
F.No.603/ 13 /2013-DBK
(G. S. Bains)
Technical Officer
Tel:23362843