Claim of Ineligible DBK— u/s 74 of Customs Act, 1962 - Customs - 23/2016

GOVT. OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS NEW CUSTOM HOUSE, MEENAMBAKKAM, CHENNAI-VII COMMISSIONERATE F.No. S. Misc. 471/2013 (Drawback-Air) Dated: 02/07/2016 PUBLI NOTICE No. 23/2016 Sub : Claim of ineligible DBK- u/s 74 of Customs Act, 1962 1. It has come to notice at Mumbai Customs that new parts/spares were imported and utilized in repair of medical equipments and power equipments and the defective spares were re-exported u/s-74 of the Customs Act, 1962 claiming drawback which is ineligible, because to be eligible for drawback u/s-74 of the Customs Act, 1962 the goods imported and re-exported should be one and the same. 2. In view of such Modus Operandi being employed by some of the exporters, it is directed to ensure that in all such cases of re-export of spares, where drawback is claimed u/s-74 of the Customs Act, 1962 it should be thoroughly examined by Deputy/Asst Commissioner of customs (Export Examination) on first check basis. In this regard the instructions contained in the following circulars 46/2011-Customs, 35/2013-Customs, 16/2016-Customs may also be referred. 3. Trade is also directed to explicitly mention the spare part name and its serial number in the B/E at the import stage itself, so that there will not be any doubt or dispute in identifying and matching the goods at the time of examination of their re-export under section 74. 4. As per Board's Circular No: 16/2016-cus dated 09.05.2016, Based on feedback, Board has noted some issues and to enhance the efficiency of this mechanism it further directs that the examination report on shipping bill must be recorded separately in a self-contained and explicit manner on each of the two aspects of identity and use. The examination report should not be made of phrases that are cryptic, generalized or sweeping in nature such as 'as per declaration', 'in as such condition', 'found in order', 'found as declared', 'goods are same' etc. This Public Notice will come into immediate effect and until further orders. (RAGHU N CHARY) PRINCIPAL COMMISSIONER CHENNAI-VII