Verification and Monitoring related to AA, DFIA, EPCG and Post Export EPCG authorizations - CBEC's Customs Manual 2023 - Customs

8. Verification and Monitoring related to AA, DFIA, EPCG and Post Export EPCG authorizations: 8.1 The AA holder is required to maintain a true and proper account of consumption and utilization of duty free imported/domestically procured goods for a specified minimum period. The AA No./date is to be indicated on the shipping bill/ bill of export or invoice (in case of deemed exports). The imports/exports under AA and their utilization require monitoring. The AA holder is to submit relevant export documents to RA to obtain an Export Obligation Discharge Certificate (EODC). An AA holder is required to deposit Customs duties with interest in case EO is not fulfilled. The RA informs details of payments to Customs at the port of registration or Commissioner of Customs having jurisdiction over the factory of AA holder, as the case may be. The EODC or redemption letter is taken into account by Customs authority at port of registration for purposes of redemption of Bond/Bank Guarantee, subject to prescribed checks including intelligence based checks. 8.2 The jurisdictional Commissioners of Customs are required to take action to monitor fulfilment of export obligation. Field formations are now also enabled to view in EDI the authorization-wise all India export details which would assist in identifying actionable cases under Advance Authorization and EPCG scheme. Commissioners are to put in place an institutional mechanism for periodical meetings with RA to exchange intelligence, check misuse and pursue issues such as EO fulfilment status in cases where EO period has expired in that quarter/ previous quarter so that concerted action can be taken against the defaulters. In case of defaulters, the field formation may issue simple notice to the Authorisation holder for submission of proof of discharge of export obligation. In case, where the Authorization holder submits proof of their application having been submitted to DGFT, the matter may be kept in abeyance till the same is decided by DGFT. Further, timely action taken in all cases of default is required to be initiated to safeguard revenue. The action to safeguard revenue is monitored through CBIC s Comprehensive MIS formats DGI - Cus 11 11A. All field formations are required to update this data on regular basis. [Refer Circular 16/2017 Dated 02.05.2017] 8.3 Apart from the checks prescribed in Board s extant instructions, the jurisdictional Commissioners of Customs are also to cause random verification for some of the authorizations issued under EPCG/ DFIA/ Advance Authorization schemes to check correctness of address on the Authorizations. The correctness of installation certificates issued by the Chartered Engineers is required to be verified on a random basis and has been restricted to 5% cases. When address verification or Installation Certificate verification is requested by the Customs authorities in respect of EPCG authorizations, the authorities should include in their verification, a check of the periodical utility bills (containing the address) as one of the means enabling verification of installation/operation/ licensee premises. Wherever aforesaid checks are prescribed, the verification shall be carried out through the jurisdictional Customs authorities. [Refer Instruction issued vide F.No. 605/71/2015-DBK dated 14.10.2016] 8.4 To rule out fabricated export documents used to show fulfilment of EO, the genuineness of shipping bills or bills of export not on Customs EDI (i.e. manual) is to be expeditiously verified while registering a duty credit scrip or post export EPCG duty credit scrip or processing EODC/redemption letters based on document purported to be of Customs non-EDI ports [Refer Circulars No.5/2010-Cus., dated 16-3-2010, No.25/2012 Cus., dated 6-9-2012, Instruction No.609/119/2010-DBK, dated 18-1-2011 and Circular No.14/2015-Cus., dated 20-4-2015]