Commodities having Minimum Export Price (MEP) and Minimum Import Price (MIP) procedure - Customs - PUBLIC NOTICE NO. 11/2015

GOVERNMENT OF INDIA OFFICE OF THE COMMISSIONER OF CUSTOMS (PREVENTIVE) 5TH FLOOR, CENTRAL REVENUE BUILDING, BIR CHAND PATEL PATH, PATNA - 800001 C. No. VIII(48)5-16/Cus/Tech/Public Notice/2011 Dated: 08.12.2015 PUBLIC NOTICE NO. 11/2015 Subject:- Commodities having Minimum Export Price (MEP) and Minimum Import Price (MIP) procedure - regarding. Attention is invited to all Importers, Exporters, CHA and Member of Trade Industry to the Notification NO, 17/2015-20 dated and Notification No, 18/2015-20 dated Issued DGFT. Ministry of Commerce and Industry, Government of India by which Minimum Export Price (MEP) have been fixed for commodities namely branded packs of Edible oil upto 5kg and Onion respectively. 2. By the aforesaid Notification, export of specified commodities is permitted subject to Minimum Export Price. Instances have come to notice or this office that the exporters while exporting, notified goods through different LCSs of this Commissiotierate are declaring Export Price in their invoice and shipping bills above Minimum Export Price (MEP) but the import documents filed by exporters for the same consignment with the Nepalese Customs are accompanied with different invoices having lesser value. Also while checking e-BRC module of ICES. it transpired that no BIRCs are being reflected against shipping bills of these commodities. The aforesaid instances raise the doubt about realization of export proceeds of these commodities through u Banking Channel in respect of export made through different shipping bills thereby defeating the purpose of fixation of MEP by Government of India. 3. In view above, in order to reasonably satisfy export of notified goods above MEP by the Customs, it is imperative that export proceeds declared in shipping bill must be realized by exporter through banking channel. 4. Therefore, as required under clause c and clause d of para 2.06 of Foreign Trade policy. '2015-20. it is prescribed that the exporter exporting notified goods having MEP is required to submit Bank Realization Certificate(BRC) to Customs for each shipping bill pertaining to export of these commodities, As stipulated time limit for realization of export proceeds as per the Foreign Exchange Regulation (Export of Goods and Services) Regulation, 2000 is 12 months, therefore export of commodities having MEP would be allowed provisionally by the Customs on execution of bond by the exporter under Section 143 of Customs Act. 1962. 5. Bond would stand discharged by Customs once exporter submit the BRC for the concerned shipping bill to the concerned Customs authority within stipulated period failing which appropriate action will be initiated against the exporter under the provisions of Customs Act, 1962 read with Foreign Regulation), 1992. 6. Similarly import of certain Commodities like Betel Nut are allowed only if CIF value of import is above specified value (refer DGFT Notification No. 10/2015-2020 dtd. 08.06.2015) i.e. Minimum Import Price (MIP) has been fixed Import of such Commodities. As for import from Nepal, BCD is exempted and trades normally take place in Rupee term, therefore it becomes imperative for Customs to verify the correctness of MIP declared by Importer in Bill of Entry. In view of above importer importing goods having MIP is required to submit Authorized (Bank) Remittance Certificate corresponding to the amount shown in Bill of Entry. In such situation, Customs would allow import provisionally on execution or Bond under Section 143 of Customs Act subject to compliance of prescribed norms for import of that commodity Importer is required to submit 'Remittance certificate' of Authorized dealer (Bank) to Customs authority or LCS for discharge of Bond failing which appropriate action as per Customs Act, 1 962 read with FT (DR), 1992 will be taken, 7. The above procedure shall be followed by all exporters / CHAs. Any difficulty in implementation of this Public Notice may be brought to the notice of the Commissioner. (V. C. Gupta) Commissioner Customs (Prev), Patna.