Systems Alert for Monitoring Realization of Export Proceeds in EDI - Customs - PUBLIC NOTICE No. 44/2009

GOVERNMENT OF INDIA MINISTRY OF FINANCE OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, 60, RAJAJI SALAI, CHENNAI-600001. F. No. S. Misc./17/2009 - DBK Date: 31.03.2009 PUBLIC NOTICE No. 44/2009 Sub: Systems Alert for Monitoring Realization of Export Proceeds in EDI - reg Exporters, Custom House Agents and all others concerned are hereby informed that since RBI vide Circular No.61 dated 31.01.2004 has dispensed with submission of declarations for export of goods of value not exceeding US$ 25,000, a large number of export consignments presently fall outside the purview of monitoring mechanism through XOS (Export Outstanding Statement), which is a consolidated half-yearly Statement of all export Bills outstanding beyond the period prescribed for realization within 15 days from the close of the half year i.e June / December. Accordingly, taking into account of the fact that drawback payment is ultimately linked to the realization of export proceeds, the Central Board of Excise and Customs (Board) after extensive consultations with field formations, trade and industry, has put in place an in-house mechanism to monitor the realization of such proceeds for exports made under the Drawback Scheme. 2. Directorate General of Systems and Data Management have developed a BRC (Bank Realization Certificate) Software for ICES, the salient features of which are the following: (a) The Exporters filing Shipping Bills (S/Bs) under drawback shall furnish a declaration to the Assistant Commissioner/ Deputy Commissioner (Drawback) providing the details of all Authorized Dealers, their codes and addresses through whom they intend to realize the export proceeds. Such a declaration shall be filed at each port of export through which the Exporter exports his goods. In case, there is a new addition of Authorised Dealer, the same is to be intimated to the concerned Custom House at the port of export. (b) The System would generate on all Drawback Shipping Bills, the due date for submission of BRCs. (c) The Exporter shall submit a certificate from the Authorized Dealer(s) in respect of whom declaration has been filed containing details of the shipments, which remain outstanding beyond the prescribed time limit, including the extended time, if any, allowed by Authorised Dealer/ RBI. Such a certificate can also be provided by a Chartered Accountant in his capacity as a statutory auditor of the Exporter's account. A Proforma for furnishing such certificate/negative statement from the Authorized Dealer is at Annexure I and from the Chartered Accountant is at Annexure Il. Further, the Exporters also have the option of giving a BRC from the concerned Authorized Dealer(s). (d) Such certificates shall be furnished by the Exporters on a six monthly basis before the 7th day of January and July in respect of exports which have become due for realization in the previous 6 months. For example, for the six-monthly period of January- June 2008 (during which exports were effected), the statement/BRC needs to be submitted by 7th July, 2009. (e) Such certificates shall be filed by the Exporter, Authorized Dealer wise at each port. The relevant date for filing certificates shall be the date of let export order (LEO), which is the date when the export goods are in effect permitted to be exported. (f) The software shall indicate list of the shipping bills under drawback where the BRC/negative statement has not been furnished by the Exporter within the prescribed date. The Assistant Commissioner/ Deputy Commissioner (Export) may peruse such lists either for the entire Customs port or for an individual Exporter by entering the IE code of the Exporter accordingly initiate action to recover drawback. (g) The BRC entry module gives three options for entering the details of foreign exchange realization: (i) If the exporter furnishes the BRCs as a proof of foreign exchange realization, the officer will choose option (1) and enter the specific Shipping Bill numbers and dates. Such Shipping Bills will be deleted by the system from the list of Shipping Bills pending for realization of export proceeds. (ii) If the exporter produces a negative statement for a specified six monthly period from the Authorized Dealer/ Chartered Accountant that no foreign exchange is pending realization for the exporter in the given period, the officer will choose option (2). The system will automatically display the Shipping Bills pertaining to the given period on screen and once the officer approves, all such shipping bills shall be deleted from the pendency list. (iii) If the negative statement furnished by the Exporter gives the list of Shipping Bills, for a particular six month period, for which foreign exchange has not been realized (and by implication foreign exchange has been realized for all other Shipping Bills) then; the officer will choose option (3). This will allow the officer to enter the Shipping Bills for which the BRCs are pending. Thereafter, all Shipping Bills except such pending Shipping Bills will be deleted from the list. (h) The BRC entry module also enables the Department to remove the list of Shipping Bills from the pendency list, if drawback is recovered subsequently. In such cases, the officer has to use the Recovery Module and enter the order no. /challan no. and date and also the No. and date of all Shipping Bills for which the drawback has been realized. Thereafter, all such Shipping Bills will be deleted from the pendency list. 3. The system will indicate to the Assistant Commissioner/ Deputy Commissioner (Drawback) all cases of Drawback Shipping Bills with LEO date falling on or after 1.1.2008 if the BRC/negative statement in the prescribed Annexure is not submitted by the Exporter within the prescribed period. Further, the Exporters are required to furnish the BRCs/negative statement in the prescribed Annexure in respect of all the Drawback Shipping Bills having LEO dates from 1.1.2004 to 31.1202007 (separately for each six month period) within a period of four months from 02.02.2009 i.e the date Of issue of Board's Circular No. 5/2009 - Customs dated 02.02.2009 6. The BRC software module will be implemented with effect from 31st March 2009. Sd/- (31.03.2009) (SANDEEP M. BHATNAGAR) Commissioner of Customs (PORT - EXPORTS)