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TMI BlogExport Promotion SchemesX X X X Extracts X X X X X X X X Extracts X X X X ..... Focus Market Scheme (FMS), Focus Product Scheme (FPS) and Status Holders Incentive Scrip (SHIS) Schemes of the FTP 2009-14 (effective for exports till 31.3.2015) may be referred at paras 2.1 to 6.3 of the Customs Manual 2014. 2.2 Under the FTP 2015-20, the (a) Merchandise Exports from India Scheme (MEIS) rewards export of notified goods to specified markets listed in Appendix 3B of Appendices ANF @ 2% or 3% or 5% of certain FOB value of exports. It covers reward on export via post or courier of specified items that are transacted using e-commerce platforms, subject to certain conditions. In order to claim reward under MEIS it is mandatory that exporter declare intent to claim reward at time of export on shipping bills / bills of export that are filed on or after 1.6.2015. (b) Service Exports from India Scheme (SEIS) incentivizes export of notified services listed in Appendix 3D of Appendices ANF by service provider located in India who have a specified minimum net free foreign exchange earnings. Only services rendered in the manner as per Para 9.51(i) and Para 9.51(ii) of the Foreign Trade Policy (FTP) 2015-20 may be eligible. The entitlement is either 3% or 5% of ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms duties in case of EO defaults for authorizations issued under Chapter 4 and 5 of FTP 2015-20 only. Similar position holds for scrips issued in terms of FTP, 2009-14. (d) Scrips cannot be used to discharge penalty or interest which are required to be deposited in cash. (e) Clearance of goods from Custom Bonded warehouses utilizing duty credit scrips of SFIS, VKGUY, FMS, FPS, SFIS is allowed as per the same procedure as is prescribed for DEPB scrips. [Refer Circular No. 50/2011-Cus., dated 9-11-2011 read with No.72/2003-Cus and No.68/2000-Cus]. This would also apply to MEIS and SEIS scrips. 4. Verification related to reward duty credit scrips: 4.1 Verification of genuineness of reward scrips is provided for before allowing registration. Further, random verification of the shipping bills or bills of export of goods based on which the reward scrip was issued is prescribed to ascertain the genuineness of the supporting shipping bills. However, the genuineness of shipping bills or bills of export of goods not on Customs EDI (i.e. Manual shipping bills) should invariably be verified while registering the scrip. While Customs can carry out complete verification of scri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment is also not available in respect of SION where any item of input appears in Appendix 4-J of FTP 2015-20. 5.6 AA are issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) or to sub-contractors in respect of supplies of goods to specified projects provided the name of such sub-contractor appears in the main contract. 5.7 AA holders are to file a bond with 100% Bank Guarantee for the duty difference at the time of importing duty free inputs. Certain categories of exporters are conditionally exempt from filing Bank Guarantee in terms of Circular No. 58/2004-Cus. dated 21-10-2004 as amended last by 15/2014- Customs dated 18.12.2014. 5.8 Normal validity of an AA is 12 months for making imports but there is provision for RA to consider request of original authorization holder and grant one revalidation for six months from expiry date. For fulfillment of EO, normally a period of 18 months from the date of issue is specified, with certain exceptions of shorter or longer periods. 5.9 Under the FTP 2015-20, the import of gold for jewellery sector is only under Advance Authorization on pre import basis with actual user condition. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irement of monitoring. However, DFIA has a minimum value addition requirement of 20% and once export obligation is completed, transferability of the authorization and / or material imported against it is permitted. Once the transferability is endorsed, the inputs can be imported/domestically sourced only on payment of additional duty of customs/ central excise duty. The DFIA is issued only where SION are notified. After the annual supplement 2013 to the FTP 2009-14, the exemption from anti-dumping duty and safeguard duty is not available when materials are imported against a DFIA made transferable. In case imported materials are transferred the importer is to pay an amount equal to the anti-dumping and safeguard duty leviable on the material, with interest. These aspects apply subject to specified conditions. 7.2 Under the FTP 2015-20, only post-export transferable DFIA with exemption from only the basic customs duty is issued by Regional Authority. Such DFIA is not available for Gems and Jewellery sector or where SION prescribes actual user condition (for example, fuel). The admissibility of brand rate of duty drawback is as per para 4.26 of the FTP. [Refer Circulars No.11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are permitted with respect to exported goods manufactured by the authorisation holder and conditions (para 5.04 of FTP 2015-20 read with 5.10 of HBP 2015-20) have been specified to better ensure this aspect. (g) Installation Certificates (ICs) for capital goods are permitted to be obtained from jurisdictional Central Excise or independent Chartered Engineer. In the latter case, a registered unit would send copy of IC to the jurisdictional Central Excise office. Capital goods may be installed at supporting manufacturer's premises if prior to such installation the latter's details are endorsed on the authorization by Regional Authority, who would intimate the change to jurisdictional Central Excise offices and the Customs where authorisation is registered in terms of para 5.02 of FTP 2015-20. (h) The EPCG Authorization holder is required to indicate the EPCG Authorization No./date on the shipping bill/invoice (in case of deemed exports). After fulfillment of specified EO, relevant documents are to be submitted to Regional Authority for obtaining EODC. This is taken into account by Customs authority at port of registration for purposes of redemption of bond/Bank Guarant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of capital goods) based on the progressive fulfilment, during the specified export obligation period, of larger extents of the total export obligation. The meaning of 'export obligation' would apply individually to each duty credit scrip. Further, scrip issuance is akin to a discharge (or partial discharge) of the export obligation and is a remission by the DGFT of duty collected by the CBEC. Therefore, it is necessary that the Deputy/Assistant Commissioner of Customs satisfies himself of the compliance of the conditions of the notification (including fulfilment of export obligation, the quantum of duty remission in the duty credit scrip, the cumulative duty credits issued against imported duty paid capital goods) before allowing a duty credit scrip, issued under the Scheme, to be registered. 9.3 A sequential monitoring is required to be followed. This begins from registration of authorization (for importing capital goods) at the port of registration and is followed by import on payment of full applicable duties of customs in cash, endorsement of import particulars on authorization at time of clearance, making specified endorsements on bill(s) of entry at time of impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise authorities) and of the declarations submitted with respect to Condition No. 14(e)(i) of the notification No.17/2015-Customs in at least 10% cases. These verifications should be made through the Commissioners of Central Excise. The central excise 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/ authorization holder premises. The Commissioners are expected to exercise due diligence to prevent misuse. [Refer Circular No.10/2013-Cus., dated 6-3-2013] 9.7 The notification No.17/2015-Customs dated 1-4-2015 permits imports through debit of the customs duties in the Post Export EPCG Duty Credit Scrip. The Notification No.18/2015-Central Excise dated 1-4-2015 permits domestic procurement through debit of central excise duties. Apart from Drawback or CENVAT Credit of Additional Duty leviable under Section 3 of the CTA, 1975 or excise duty, the importer shall be entitled to avail of the drawback of the duty of Customs leviable under the first schedule to the Customs Tariff Act, 1975 against the amount debited in the Post EPCG Duty Credit s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... check correctness of address on the Authorizations. Such verification is to be preferably through the Central Excise divisions. Similarly, the correctness of installation certificates issued by the Chartered Engineers is required to be verified on a random basis through Central Excise divisions. When address verifications or Installation Certificate verifications are requested by the Customs authorities in respect of EPCG authorizations, the Central Excise 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. 11.3 To rule out fabricated export documents being used to show fulfillment 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 orpost export EPCG duty remission 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/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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