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TMI BlogDestruction of exported goods abroadX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Members, EOU or DTA having benifit of advance authorisation has exported goods and received foriegn currency. Recipiant has rejected such material and got his payment back in foreign currency. Later, EOU or DTA has destroyed such rejected in foreign country without bringing back into India In this scenario 1. Whether such EOU/DTA has to reverse benefits of duty free imports? 2. Whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MEIS benefit claimed on such exports need to be reversed? 3. Is there any specific procedure for such destruction? - Reply By KASTURI SETHI - The Reply = In my view, no export benefit is admissible in the situation explained by you. - Reply By YAGAY andSUN - The Reply = You need to reverse all export benefits as mentioned in Chapter 3, 4, 5, 7 of the FTP along with interest as mentioned in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e FT(DR) Act. Further, you also need to produce a destruction certificate (get it from your customer as a documentary proof). - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = Thanks Sri Yadhav for your reply. - Reply By Spudarjunan S - The Reply = My Opinion on the above query:- Q.1 - For the purpose of duty free imports for DTA under Advance Authorisation or EOU, the main condition t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be fulfilled for availing the benefit to make exports. In terms of sec 2(18) of Customs Act,1961 - export with its grammatical variations and cognate expressions, means taking out of India to a place outside India. In terms of FEMA and RBI circular, it is obligation of exporter to realise and repatriate the export proceeds within 9 months from the date of export, in case of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... export to warehouse established outside India the time limit is 15 months from the date of export . However, in case an exporter couldn't realise the proceeds he can apply to AD for remitting the export proceeds or self-write off subject to fulfillment of certain conditions listed by RBI with proportionate reversal of export incentives claimed (i.e. Duty Drawback etc.) Further, under FTP f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or getting Export obligation discharge certificate for Advance Authorisation and debonding of EOU the concerned person has to submit the corresponding e-BRC or documents for realisation of foreign exchange for respective export consignments. So it is clear that in order to avail the benefit of Advance Authorisation/EOU/EPCG and so on FTP benefit scheme, the export should be wholesome i.e. a comple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te cycle from shipment to realisation of proceeds. Further, in terms of notification no.89/2017 Cus (N.T) dated 21.09.2017 exports made by 100% EOU/ SEZ/under Advance Authorisation/any duty exemption scheme of FTP are not allowed to claim duty drawback. Q.2 MEIS benefit can't be claimed for this transaction since the scrip is allowed on the FOB value as per shipping billing or forei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gn currency realized WHICHEVER IS LOWER .(Refer Para 3.04 of FTP 2015-20 ) In this case the realized consideration is zero so MEIS is not eligible. So there is no question of reversal of MEIS. Q.3 I couldn't find any specific procedure mentioned for specific procedure for such destruction. - Destruction of exported goods abroad - Query Started By: - CAHemanth Kumar B Dated:- 5-12- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2018 Customs - Import - Export - Customs - SEZ - Got 4 Replies - Customs - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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