Customs- Drawbacks – pending due to query reply From exporter and EGM not filed cases - Customs - PUBLIC NOTICE NO. 33/2020

OFFICE OF THE COMMISSIONER OF CUSTOMS NEW CUSTOM HOUSE, PANAMBUR, MANGALURU 575 010 C.No.S-26/01/2020 Cus Tech Date: 23.09.2020 PUBLIC NOTICE NO. 33/2020 Sub: - Customs- Drawbacks pending due to query reply From exporter and EGM not filed cases - Reg. Attention is invited to CBIC Instruction No. 03/2020-Customs dated 09/04/2020 on the subject Special Refund and Drawback Disposal Drive - Implementation of the decision to expedite pending refund and drawback claims 2. Continuing with the various trade facilitation measures initiated by the CBIC given COVID-19 situation, it has now been decided that all pending Customs Refund and Drawback , claims shall be expeditiously processed to provide immediate relief to the business entities, especially MSMEs, in th se difficult times. This decision has been announced vide Press Note dated 08th April 2020 issued by the Department of Revenue, Ministry of Finance. 3. It is hereby informed that immediately a Special Refund and Drawback Disposal Drive with the objective of priority processing and disposal of all pending refund and drawback claims has been initiated. It is expected that during this period all refund and drawback claims that are pending as on 31- 08-2020 are being disposed of. 4. The pendency position of drawback claims in various queues under EDI System as on 21.04.2020 is as given below: Current Queue Reason for pendency Total DBKS/Bills Exporter Non-submission of reply by the exporters to the Query Raised 127 EGM Non-filing of EGM within the timeframe stipulated 361 361 EGM error Non-rectification and non-filing of application for correcting of EGM errors by the Shipping Lines/Exporters 121 5. Given the above, the following measures are being initiated to liquidate pendency of drawback Claims in various categories mentioned above: (i) Claims pending on account of non-receipt of reply to the queries raised: Several queries are raised by the Drawback officers in respect of the drawback claims filed by the exporter and they are sent to the exporters query menu for their response/reply. On scrutiny of the queries raised if any reasonable doubt is entertained regarding the genuineness of the exporter and exported goods and if any such investigations are pending against them then those exporters may be placed under intensive surveillance. Such a list of exporters may be sent to the SIIB for further probe into the relevant details to safeguard the interest of revenue. Further, a detailed list of S/Bills in which queries have been raised and drawback claims are pending for submission of replies from the exporters shall be obtained from EDI / NIC. The Deputy Commissioner in charge of Drawback section along with his officers in the section is directed to complete the scrutiny of queries. With a view to ensure that the drawback claims are disposed off expeditiously and as a one- time measure to clear the pending drawback claims (Queries raised up to 31st August, 2020) on priority basis, all the concerned Exporters/ Customs House Agents, are hereby requested to submit the replies to the queries latest by 02-11-2020. If no reply is received by 02-11-2020, the Proper Officer shall process/ decide such drawback Claims on the basis of available records without any further reference to the exporters concerned. Subsequently, for such cases, the exporters may file supplementary claims as per extant provision of Law and Rules made thereunder. (ii) EGM not filed and EGM Errors: On account of EGM errors, the pace of processing of Drawback claims gets substantially affected. While feeding the stuffing report or while filing the EGM, the details of the container number, rotation number and loading number etc. may get wrongly entered and these are called EGM errors. a. The errors that frequently occur belong to the N, C and L types. The application for rectifying these and such other errors has to be filed with the AC/DC (EGM). The AC/DC will approve the rectification of errors on being satisfied with the veracity and genuineness of the errors. Keeping in view the workload of the AC/DC, it is hereby decided to delegate the power of approving the errors to the officer of Superintendent cadre posted in the EGM. However, the AC/DC will conduct a random percentage check of the errors so approved by the Superintendent to effectively monitor that the rectifications are done properly and correctly. b. The EGM has to be filed within seven days of shipment of the containers by the shipping lines. If the EGM is not filed in time then they cannot be entered into the system and thus the error of EGM NOT FILED automatically pops up in the EDI system. In case of EGM not filed for the old period, the EGM has to be now filed in the EDI. c. It is a Known fact that Shipping Lines have the knowledge of EGM errors in case of EGM filed by them through pre and a final checklist. It is the responsibility of the Shipping line to rectify the EGM errors within 48 hours of the filing of the EGM for which they have to approach the AC/DC in-charge of EGM Section and get the EGM errors rectified as per the laid down procedure. Hence, it has been decided that the shipping bills pending under EGM NOT FILED and EGM ERRORS categories will be processed on merit, subject to production of BRC (wherever due) before 02-11-2020. The cases where BRC due is not produced and rest of the cases not attended shall be processed at zero drawback, without affecting the right of the exporter to claim the drawback amount by filing supplementary claim subsequently without any time bar. d. Further, it is decided that if the EGM errors are not rectified within the stipulated time the EGM will be treated as not filed and the claims will be processed and disposed of at zero rates. Moreover, appropriate action also will be initiated against the shipping lines that habitually indulge in late and non-filing and non-reconciling of EGM errors under the provisions of the Customs Act, 1962 on case to case basis. 6. All such cases of pendency of query reply for the period 2001-02 to 2020- 21(upto 31-08-2020), non filing of EGM the for the period 2011-12 to 2020- 21(upto 31-08-2020) and EGM error pendency from 2010-11 to 2020-21(upto 31-08-2020) are uploaded in the Mangalore Customs Website (www. http://customsmangalore.gov.in) along with this Public Notice. 7. All the Exporters/Trade/CHAs/Steamer Agents are advised go though the uploaded details and to resolve the issue immediately. Action to be taken in terms of decisions taken in this Public Notice should be considered as standing order for the purpose of officers and staff. In case of any difficulty, the specific issue may be brought to the notice of Shri Joannes George, Joint Commissioner of Customs, New Customs House, Panambur, Mangaluru (Mobile No.9747872349). (IMAMUDDIN AHMAD) COMMISSIONER OF CUSTOMS MANGALURU