Fresh guidelines for conversion of various categories of Shipping Bills - Customs - PUBLIC NOTICE NO. 01/2011

GOVERNMENT OF INDIA OFFICE OF THE COMMISSIONER OF CUSTOMS, PATNA C. R. BUILDING, 5TH FLOOR, BIRCHAND PATEL PATH, PATNA - 800001 C. No. VIII(48)5-11/CUS/TECH/Public Notice/08/681-84 Dated: 11.02.2011 PUBLIC NOTICE NO. 01/2011 Sub: Fresh guidelines for conversion of various categories of Shipping Bills Attention of all concerned is invited to the Board's Circular No. 36/2010-cus dated 23.09.10 issued vide F. No. 609/121/2009-DBK of Central Board of Excise Customs, New Delhi providing fresh guidelines for conversion of various categories of Shipping Bills. It supersedes CBEC's Circular No. 02/2004-Cus. dated 16.01.04 as well as the other earlier Circulars issued in the past on this issue. 2. As per the new guidelines contained in Board's Circular No. 36/2010-Cus dated 23/09/2010, the Commissioner of Customs may allow conversion of shipping bills from schemes involving more rigorous examination to schemes involving less rigorous examination (for example, from Advance Authorization/DFIA scheme to Drawback/DEPB scheme) or within the schemes involving same level of examination (for example, Drawback scheme to DEPB scheme or vice versa) irrespective of whether the benefit of an export promotion scheme claimed by the exporter was denied to him by DGFT/MoC or Customs due to any dispute or not. The conversion of Shipping Bills from one scheme to another scheme shall be allowed in accordance with the provisions of Section 149 of the Customs Act, 1962 on a case to case basis on merits provided the Commissioner of Customs is satisfied that, on the basis of the documentary evidence, which was in existence at the time goods were exported, that the goods were eligible for the export promotion scheme to which conversion bas been requested. 3. As per the new guidelines contained in CBEC Circular No. 36/2010-Customs dated 23.09.2010, conversion of Shipping Bills shall also be subject to conditions as specified by the DGFT/MoC and may be allowed subject the following further conditions: (a) The request for conversion is made by the exporter within three months from the date of the Let Export Order (LEO). (b) On basis of available export documents etc. the fact of use of inputs is satisfactorily proved in the resultant export product. (c) The examination report and other endorsements made on the Shipping Bill / export documents prove the fact of export and the export product is clearly covered under relevant SION / and or DEPB/Drawback Schedule as the case may be. (d) On the basis of Shipping Bill / export documents, the exporter has fulfilled all conditions of the export promotion scheme to which he is seeking conversion. (e) The exporter has not availed benefit of the export promotion scheme under which the goods were exported and no fraud / mis-declaration / manipulation has been noticed or investigation initiated against him in respect of such exports. 4. Conversion of Free Shipping Bills, i.e. Shipping Bills not filed under any export promotion scheme), which are subject to 'nil' examination norms, into Export Promotion Scheme Shipping Bills (Advance Authorization, DFIA, DEPB, reward schemes etc.) shall not be allowed. 5. However, the Commissioner of Customs may allow All Industry Rate of Duty Drawback on goods exported under Free Shipping Bill, without conversion of such Shipping Bill to Drawback Scheme Shipping Bill, in terms of the proviso to Rule 12(1)(a) of the Customs, Central Excise and Service Tax Drawback Rules, 1995. 6. It is further clarified that the exporter will not be entitled to take the benefit of both the schemes, i.e. the scheme to which conversion is sought and the scheme from which conversion is sought. 7. This Public Notice shall be applicable only for the Shipping Bills filed on or after the date of issuance of Circular No. 36/2010-Cus dated 23.09.2010. Till such time the EDI system is modified to allow conversion of Shipping Bills in the EDI system, the conversion may be allowed manually. 8. Difficulties faced, if any, in the implementation of the directions contained in the Public Notice may be brought to the notice of the Commissioner of Customs, Patna, 5th Floor, Central Revenue Building, Bir Chand Patel Path, Patna --800 001, Ph. No. 0612-2504998 Fax No. 0612-2505506. (A. K. CHATURVEDI) COMMISSIONER OF CUSTOMS PATNA