Procedure for Registration and Monitoring of DEEC / Advance Authorisation Scheme Reg. - Customs - 11/2011

OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT), JAWAHARLAL NEHRU CUSTOM HOUSE, SHEVA, TAL-URAN, DIST-RAIGAD, MAHARASHTRA-400707. File No.- S/16-DEEC-GEN-1520/09/VIID-(Pt) Date:10/ 02/2011. PUBLIC NOTICE NO.11/2011 Subject: - Procedure for Registration and Monitoring of DEEC / Advance Authorisation Scheme Reg. 1. Attention of all the Importers/Exporters/CHAs and all concerned is invited to Public Notice No 78/2009 dated 21.10.2009, Circular No.5/2010- Cus dated 16.03.2010 and Instruction F. No. 609/119/2010-DBK dated 18.01.2011 . The following modifications /clarifications with regard to the said Public Notice are made to further streamline the procedure of verification and monitoring of DEEC/Advance Authorisation scrips. 2. DEEC Verification section and DEEC Monitoring Cell of Jawaharlal Nehru Custom House, Nhava Sheva, are merged w.e.f. 14.02.2011. After this merger the verification of shipping Bills as well as cancellation of Bonds / BGs will be done at the existing office of DEEC Monitoring Cell situated at JNCH, Nhava Sheva. The merged Cell shall be known as DEEC Monitoring Cell. 3. As per para 4.26 of the Handbook of Procedures Vol. I (2009-2014) , in the case where export obligation under Advance Authorisation is fulfilled, Regional Authority of DGFT redeem the case. After redemption Regional Authority of DGFT issues EODC/ Redemption letter/ No Bond Certificate (in case of No BG/LUT facility) [herein after all 3 referred as EODC] indicating shipping bill number(s), date(s), FOB value in Indian rupees as per shipping bill(s) and description of export product in respect of shipment which were taken into account for the purpose of fulfillment of EO. Cancellation/redemption of BG/LUT is undertaken by Customs after receipt of EODC with export details. 4. There are two types of EODCs issued by DGFT. One type bears the requirement that Customs Authority shall verify the details of export from their records. Another type does not bear any such requirement. Wherever the EODC issued by DGFT bear the requirement that the Customs department should carry out verification, then such verification shall be done as per the existing procedure as modified in this order. In other cases, the EODC shall be accepted unless there is an intelligence suggesting misuses or for cases given in para 5. However it may be ensured that EODC is received along with export details from DGFT. 5. All exporters are requested to submit original EODC alongwith export details issued by DGFT. All the original EODCs received from DGFT/submitted by exporter during a month at DEEC Monitoring Cell will be registered sequentially. In case EODCs issued by DGFT do not bear the requirement of verification of exports by Customs, the DEEC Monitoring Cell may, however, verify details of exports and other related aspects on random basis. 6. The EODCs with export details issued by DGFT which bear the requirement that the Customs Department should carry out verification of export details or for the cases selected by Customs for random verification. An intimation would be sent by Customs Department to produce the required documents as per Annexure A to the DEEC Monitoring Cell for verification and consequent cancellation/redemption of BG/LUT. 7. A list showing all the cases selected for verification of exports and cases where EODCs have been accepted by the department and BG/LUT cancelled/redeemed in the previous month shall be issued vide a Public Notice by the 10th of every month. 8. In the cases where the EODC/Redemption letter is issued before the expiry of the validity of the Licence/Advance Authorisation, on the basis of proportionate import and export, then the said Licence/ Advance Authorisation shall be blocked for further import in the EDI system. 9. Other procedural requirements as outlined in Public Notice No. 78/2009 dt. 21.10.2009 shall continue to be followed with the aforesaid modifications. 10. Any difficulty faced by the Trade in implementing the above may be brought to the notice of the undersigned immediately. SD/- (SUSHIL SOLANKI) COMMISSIONER OF CUSTOMS (EXPORT) ANNEXURE-A EODC/Redemption letter/ No Bond certificate with export details issued by DGFT which bear the requirement that the Customs Department should carry out verification of the details of export from their records or the cases selected by Customs for random verification, the licence holder shall furnish the following documents: 1. In case of physical export under EDI Shipping Bills from Nhava Sheva: (i) Statement of import and export against the licence as submitted to DGFT in ANF 4F. (ii) Original Licence along with all amendment sheets including invalidation letter/ARO, if any, issued by the licensing authority. In cases where Original Licence is retained by DGFT, document showing endorsement of DGFT about retention of Original Licence. (iii) Original EODC/Redemption letter/No Bond certificate with details of exports issued by DGFT. (iv) Bank Realization Certificate from bank. (v) ARE-1/ARE-2, wherever necessary. 2. In case of physical export under Manual Shipping Bills from Nhava Sheva or EDI/Manual Shipping Bills from other ports, besides the documents as above at 1, the following documents will also be required: (i) B/L or Mate receipt copy (ii) ARE-1/ARE-2 (iii) Copy of the EP copy of Shipping Bills and BRCs. (iv) Bank Realization Certificate from bank. 3. In case of Deemed Export besides the documents as above at 1, the following documents will also be required: (i) A copy of the invoice or a statement of invoices duly signed by the unit receiving the material and their jurisdictional excise authorities certifying the item of supply, its quantity, value and date of such supply. However in case of supply of items which are non excisable or supply of excisable items to a unit producing non excisable product(s), a project authority certificate (PAC) certifying quantity, value and date of supply would be acceptable in lieu of excise certification. However, in respect of supplies to EOU/EHTP/ STP/ BTP, a copy of CT-3/ARE-3 duly signed by the jurisdictional excise authorities certifying the item of supply, its quantity, value and date of such supply can be furnished in lieu of the excise attested invoice (s) or statement of invoices as given above. However in case of supply of the product by the Intermediate supplier to the port directly for export by the ultimate exporter (holder of Advance Authorisation or DFIA) in terms of paragraph 4.13 of HBP v1, copy of the shipping bill with the name of domestic supplier as Intermediate supplier endorsed on it along with the file No. / Authorisation No. of the ultimate exporter and the intermediate supplier shall be required to be furnished. (ii) Payment certificate from the project authority. In the case of Advance Authorisation for Intermediate Supplies/ deemed exports, supplies to the EOUs/ EHTPs/STPs/ BTPs, documentary evidence from the bank substantiating the realization of proceeds from the Authorisation holder or EOUs/EHTPs/ STPs/ BTPs, as the case may be, through the normal banking channel. Confirmed irrevocable inland letter of credit or inland bill of exchange unconditionally Availed/ Co- Accepted/ Guaranteed by a bank and the same is confirmed by the exporters bank and certified by the bank. For status holders, irrevocable inland letter of credit would suffice. In the above cases (1, 2 3) Customs may also demand any other document as deemed proper.