Analysis of Circular No. 11/2025-Customs - Implementation of Export Entry (Post Export Conversion in Relation to Instrument-Based Scheme) Regulations, 2025

[YAGAY andSUN]

Summary: The Circular No. 11/2025-Customs issued by the Central Board of Indirect Taxes and Customs (CBIC) on 3rd April 2025 aims to implement reforms related to the post-export conversion of export entries under instrument-based schemes. This reform is part of the ongoing efforts to streamline export processes, reduce business costs, and enhance the efficiency of the export clearance process.

Here’s a breakdown of the key points from the circular:

Key Highlights:

1. Reforms to Reduce Time and Costs for Exporters: The circular emphasizes various reforms aimed at easing the process of exporting goods and services. Key aspects include:

   • Seamless credit of drawback to exporters' accounts.

   • Single registration for Authorised Dealer (AD) Code.

   • Extension of RODTEP (Remission of Duties and Taxes on Export Products) benefits. These reforms are designed to simplify processes and improve the ease of doing business for exporters.

2. Automation of Customs Processes: The circular mentions the automation of several remaining customs processes as part of the Budget Announcement, including:

   • Electronic processing of amendments under Section 149 of the Customs Act.

   • Electronic processing of provisional assessments in exports.

   • Re-transmission of relevant details to the concerned agencies.

3. Changes in Shipping Bills Under Section 149 of the Customs Act: Certain fields in the shipping bills, like the Port of Loading, Country of Final Destination, Port of Discharge, Invoice details (AD Code, Invoice Value), and Item details (HS Code, Description, Quantity), will require the approval of the Additional or Joint Commissioner of Customs for amendments. This ensures that amendments are carefully reviewed.

4. Implementation of Export Entry (Post Export Conversion in Relation to Instrument-Based Scheme) Regulations, 2025: The Shipping Bill (Post Export Conversion in Relation to Instrument-based Scheme) Regulations, 2022 has been superseded by the new Export Entry (Post Export Conversion in Relation to Instrument-Based Scheme) Regulations, 2025. Key provisions of the new regulations:

   • The term ‘Export Entry’ is defined to cover all kinds of exports as per Clause (16) of Section 2 of the Customs Act, 1962.

   • The time limit for conversion of export entries is set to one year from the date of the order for clearance of goods under the relevant sections of the Customs Act.

   • This one-year time limit applies even to export entries filed prior to 22.02.2022. It will be counted from the date these regulations came into force.

   • The amendments under Section 84 of the Customs Act are incorporated into the regulations for permitting amendments with restrictions on export benefits, including drawback and other export benefits.

   • The regulations allow for conversion of export entries filed under drawback schemes into Instrument-Based Schemes, and a reversal of benefits if the exporter opts for such conversion.

5. Coverage of Non-Free Shipping Bills: The circular expands the scope of the amendments to cover all types of export entries, excluding Free Shipping Bills, which means that even export entries other than those under free shipping bills are now eligible for conversion.

6. Advisory from the Directorate General of Systems and Data Management: The DG Systems will issue further implementation guidelines for these regulations to ensure smooth compliance.

7. Publicity and Training: The circular encourages widespread dissemination of the information via Trade/Public Notices. Officers are instructed to be sensitized about handling the Post EGM Module for smooth implementation of these regulations.

Important Provisions in the Circular:

• Time Limit for Conversion of Export Entries: The new time limit for converting export entries has been fixed at one year from the clearance order date. This is a significant shift, providing exporters with a more structured timeline.

• Amendments with Approval: The requirement for Additional/Joint Commissioner approval for amending critical fields in the shipping bills (such as invoice details, HS codes, and destination details) reflects the need for regulatory oversight when making post-export amendments.

• Instrument-Based Schemes: The new provisions allow exporters to convert their export entries from a drawback scheme to an Instrument-Based Scheme, as long as the conditions for conversion are met. However, exporters will need to reverse the benefits already availed from the previous scheme when opting for such a conversion.

Conclusion:

This circular represents a positive move for exporters, streamlining post-export processes and offering better clarity on converting export entries. The introduction of electronic processing and automated amendments under Section 149 of the Customs Act will simplify procedures, reducing paperwork and delays.

Key changes include the extension of time limits for post-export changes, the mandating of officer approval for critical amendments, and the conversion of export entries from one scheme to another. Exporters should be aware of these new rules and adjust their procedures accordingly to comply with the new regulations.