Discontinuation of practice of making manual debits on physical copy of Advance Authorizations registered at EDI Customs port - Customs - PUBLIC NOTICE No. 37/2016

OFFICE OF THE COMMISSIONER OF CUSTOMS NEW CUSTOMS HOUSE, PANAMBUR, MANGALURU 10 C. No. S-02/03/2016 Export Date: 25.11.2016 PUBLIC NOTICE No. 37/2016 Subject: Discontinuation of practice of making manual debits on physical copy of Advance Authorizations registered at EDI Customs port-reg. Attention of the Importers, Exporters, Customs Brokers and other members of Trade is invited to the directions given to the field formations vide Instruction F.No.605/30/2015-DBK dated 28.09.2016. The Board has issued instructions for discontinuation of practice of making manual debits on physical copy of Advance Authorizations registered at EDI Customs Port. The said instruction is available on the CBEC website at www.cbec.gov.in. Some of the key points are specified as under:- 2. The Board, considering the overall picture into account that normally only few advance authorization holders registered for imports want to simultaneously avail domestic sourcing on the same authorisation, as a measure of enhancing the ease of doing business for exporters, has decided that the practice of evidencing debits manually on physical copy of Advance Authorization shall be discontinued with respect to future authorizations electronically registered at Customs EDI locations. Henceforth, the officer examining the imported goods and/ or giving Out-of-Charge order shall also re-check that the proper debit of the authorisation in the EDI system has been made. 3. The instruction No.605/30/2015-DBK dated 28.09.2016, also prescribes that, if a holder of Advance Authorisation is desirous of obtaining Advance Release Order (ARO)/Invalidation letter etc. for domestic sourcing from the Regional Authority (which issued the authorisation of DGFT), it is required to request the Group DC/AC to issue an Advice Letter for the intended quantity and value (which the AC shall update in the records) in favour of the concerned Regional Authority and thereafter, the holder of Advance Authorization may apply (based on the Advice Letter) to the Regional Authority (RA) to issue ARO etc. The DC/AC should ensure that requests for such Advice Letter are processed immediately and the Advice letter issued on the same day. A copy of the Advice Letter issued shall be replicated to the official email of the RA concerned from the official email of the Group DC/AC and record thereof placed with the office copy of the Advice Letter. This is to obviate the need for verification of Advice Letter by the RA concerned which causes delay and to prevent fraud. 4. In the light of this change, in case the Commissioner of Customs at port of EDI registration of advance authorization decides to permit clearance manually at the time of an EDI breakdown, suitable safeguards may be taken and also ensure subsequent entry of debits in EDI for proper accounting. 5. It may be noted that the change does not affect the use of Telegraphic Release Advice (TRA) facility at non-EDI port w.r.t. advance authorisation registered at EDI Customs location, since the authorisation gets debited in EDI System at the EDI port of registration and only the advice for release moves to the non-EDI port. 6. The physical advance authorizations which DGFT is issuing, concurrently with electronic transmission of certain types of authorizations, shall continue to be presented for the time being, till DGFT s electronic transmission to Customs server includes certain details being specified by licensing authorities such as the higher bank guarantee or cash security than normally due (including no bank guarantee) or the additional conditions imposed such as restricted export obligation periods or absence of facility of extension of EO period in case of certain products, details of invalidation for domestic procurement prior to EDI registration at port of import, etc. 7. In view of the Board s instructions, all Exporters/Importers, Customs Brokers and the Members of the Trade are requested to take due note of the changes incorporated and co-operate with the Departmental officers in implementing the said instructions. (Dr M. SUBRAMANYAM) COMMISSIONER