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TMI BlogClaiming BCD and IGST on FOC SamplesX X X X Extracts X X X X X X X X Extracts X X X X ..... Claiming BCD and IGST on FOC Samples X X X X Extracts X X X X X X X X Extracts X X X X ..... vely to claim the BCD. The Icegate has a list of 100+ scheme codes. Any other details on SOP? Q2 : Claiming IGST : how to go about it Q3 : which type of SB should be filed for reconciliation? Import RETRUN (SB1) RETURN (SB2) RETURN (SB3) RETURN (SB4) IN HAND AT THE END OF 2ndYEAR 15-Mar of the next year 15-Jul of the next year 15-Sep of the next year 15-Decof the next year 01-Jan BOE1 25 Pcs 5 PCS 5 PCS 5 PCS 5 PCS 5 PCS 01-Feb BOE2 50 PCS 10 PCS 10 PCS 10 PCS 10 PCS 10 PCS 01-Mar BOE3 10 PCS 5 PCS 5 PCS &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; 0 01-Apr BOE4 35 PCS 10 PCS 10 PCS 10 PCS 5 PCS 01-May BOE5 15 PCS 10 PCS 5 PCS 01-Jun BOE6 35 PCS 10 PCS 10 PCS 10 PCS 5 PCS TOTAL 170 PCS 20 PCS 50 PCS 35 PCS 35 PCS 30 PCS The list of 100+ scheme codes as available on ICEGATE 00. Free SB Involving Remittance Of Foreign Exchange 01. Advance License With Actual User Condition 02. Advance License For Intermediate Supplies 03. Advance License 04. Advance Release Order 05. Advance License For Deemed Exports 06. DEPB Post Export 07. DEPB-Pre Export 08. Replenishment Licence 09. Diamond Imprest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Licence 10. Bulk License 11. Concessional Duty EPCG Scheme 12. Zero Duty EPCG Scheme 13. CCP 14. Import License For Restricted Items Of Imports 15. Special Import License 16. Export License 17. Advance Licence for annual requirement 18. (Intentionally left blank - No 18 in source text) 19. Drawback 20. Jobbing(JBG) 21. EOU/EPZ/SEZ/EHTP/STP 22. Duty Free Credit Entitlement Certificate 23. Target Plus Scheme 24. Vishesh Krishi Upaj Yojana (VKUY) 25. DFCE for Status holder 26. Duty Free Import Authorization 27. Focus Market Scheme 28. Focus Product Scheme 29. High Tech Products Export Promotion Scheme 30. EPCG Duty Based 31. Status Holder Incentive Scheme 32. Tariff Quota 33. (Intentionally left blank - to maintain num ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bering) 34. (Intentionally left blank - to maintain numbering) 35. Incremental Incentivisation Scheme 36. Merchandise Export Incentive Scheme 37. Service Export Incentive Scheme 38. (Intentionally left blank - to maintain numbering) 39. Rebate of State and Central Taxes Levies 40. DBK and Advance Licence for annual requirement 41. Drawback And Advance License 42. (Intentionally left blank - to maintain numbering) 43. Drawback And Zero Duty EPCG 44. Drawback And Concessional Duty EPCG 45. Drawback And Pre Export DEPB 46. Drawback And Post Export DEPB 47. Drawback And JBG 48. Drawback And Diamond Imprest Licence 49. Drawback And EOU/EPZ/SEZ 50. EPCG And Advance Licence 51. (Intentionally left blank - to maintain numbering) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 52. EPCG and JBG 53. EPCG And Diamond Imprest Licence 54. EPCG And Replenishment Licence 55. EPCG and DEPB(Post Exports) 56. EPCG and Advance Licence for annual requirement 57. (Intentionally left blank - to maintain numbering) 58. (Intentionally left blank - to maintain numbering) 59. EPCG and DFIA 60. Drawback, and ROSCTL 61. EPCG,Drawback and ROSCTL 62. Drawback and special DEEC(4.04A) 63. EPCG,Drawback and special DEEC(4.04A) 64. EPCG,Drawback and special DEEC(4.04A) 65. EPCG,Drawback,special DEEC(4.04A) and ROSCTL 66. (Intentionally left blank - to maintain numbering) 67. (Intentionally left blank - to maintain numbering) 68. (Intentionally left blank - to maintain numbering) 69. (Intentionally left blank - to maintain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... numbering) 70. (Intentionally left blank - to maintain numbering) 71. EPCG,Drawback And DEEC 72. (Intentionally left blank - to maintain numbering) 73. EPCG,DRAWBACK And Jobbing 74. EPCG Drawback And Diamond Imprest Licence 75. EPCG Drawback And DEPB Post Export 76. Epcg, Drawback And Depb (Pre-export) 77. (Intentionally left blank - to maintain numbering) 78. (Intentionally left blank - to maintain numbering) 79. EPCG,Drawback and DFIA 80. EPCG,Drawback and Advance Licence for annual requirement 81. DFIA and Drawback 82. (Intentionally left blank - to maintain numbering) 83. (Intentionally left blank - to maintain numbering) 84. (Intentionally left blank - to maintain numbering) 85. (Intentionally left blank - to maintain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... numbering) 86. (Intentionally left blank - to maintain numbering) 87. (Intentionally left blank - to maintain numbering) 88. (Intentionally left blank - to maintain numbering) 89. (Intentionally left blank - to maintain numbering) 90. (Intentionally left blank - to maintain numbering) 91. Merchandise Export Incentive Scheme for eCommerce Shipments 92. (Intentionally left blank - to maintain numbering) 93. (Intentionally left blank - to maintain numbering) 94. (Intentionally left blank - to maintain numbering) 95. (Intentionally left blank - to maintain numbering) 96. (Intentionally left blank - to maintain numbering) 97. (Intentionally left blank - to maintain numbering) 98. Free Shipping Bill involving Indian Currency 99. NFE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I (No Foreign Exchange Involved) 100. PI-Project Import / RD-RoDTEP Scheme / RS-RoSCTL Scheme Reply By YAGAY andSUN: The Reply: Understanding the Process for Claiming BCD and IGST on FOC Samples Imported and Returned: You've mentioned importing FOC samples (Free of Cost) and paying IGST (Integrated Goods and Services Tax) and BCD (Basic Customs Duty) on these goods. The samples are to be returned to the foreign seller, and you want to know how to claim back the taxes, including the BCD and IGST, when returning these samples. Let's break down your queries: Q1: Claiming BCD on Import of FOC Samples When importing samples, even though they are free of cost, customs duty is applicable at the time of import (i.e., BCD). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... To claim back the BCD, you would typically rely on Duty Drawback or any available schemes that allow refunds or exemptions on returned goods. * Scheme Code for BCD Claim: To claim BCD when returning the goods, you should choose the appropriate scheme code for the Duty Drawback or EPCG (Export Promotion Capital Goods), as these are commonly used when goods are exported (or in your case, returned). Based on the ICEGATE scheme list, the likely applicable schemes are: * Scheme Code 19 - Drawback: This allows you to claim a refund of duties on goods that are exported or returned. * Scheme Code 21 - EOU/EPZ/SEZ/EHTP/STP: If you are operating under any Export Oriented Unit (EOU) or similar status. * Scheme Code 99 - NFEI (No Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reign Exchange Involved): This scheme code applies when no foreign exchange is involved in the transaction, which may apply to FOC samples that are not sold for profit. Standard Operating Procedure (SOP): * Fill the correct scheme code on the Bill of Entry (BOE) and Shipping Bill (SB) while filing for customs clearance. * Ensure that you have proof of return or export, such as Airway Bill or Courier/Shipment Tracking, as evidence that the goods were returned to the foreign supplier. Q2: Claiming IGST on FOC Samples As per the GST law, IGST is applicable on goods imported into India. Since you've paid IGST on the imports, it's important to understand that you may be able to claim a refund when the goods are returned. * IGST Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fund Process: You can apply for a refund of IGST paid on the imported goods that are returned, under the Refund of IGST on Export of Goods process. Here's how: * Fill the Shipping Bill (SB) with the correct details and mention the return of goods as export. * Application for Refund: File a refund application under GST RFD-01. The IGST refund application can be filed once the goods are exported or returned to the foreign seller. If the IGST was incorrectly paid, the refund can be requested through the GST portal. * Proof of Return: Similar to BCD, ensure that you have documentation to show that the goods were returned to the foreign seller. This will be essential for the refund process. Q3: Type of SB to be Filed for Reconcili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation For reconciling the taxes paid on the FOC samples and their return, the Shipping Bill (SB) filed should be based on the goods' movement and the return process. * SB Type: Based on the nature of the return and your transaction, you would need to select an appropriate SB type from the list. Common options could be: * SB1 (Exemption Scheme) for returned goods where duties were not initially paid or were exempted. * SB2 (Normal Scheme) for goods that are being returned as part of the normal export process. * SB3 and SB4 (if applicable) for specific types of returns (if you are handling these under any export promotion schemes). Matrix Breakdown for Returns The matrix you provided shows how samples are received and retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in parts, which aligns with a step-by-step process to file BOEs and SBs for claiming refunds on the BCD and IGST. * Each entry for BOE (Bill of Entry) reflects an import of goods at a certain time. * As per the matrix, you will have to file returns in parts, matching each Shipping Bill (SB) with the corresponding return of goods. Summary of Key Steps for Claiming BCD & IGST on Return: Step Details 1. Scheme Code for BCD Use Scheme Code 19 (Drawback) or Scheme Code 21 (EOU/EPZ) for claiming BCD refund. 2. Filing BOE/SB File Bill of Entry (BOE) for importing, with the applicable scheme code. 3. Claiming IGST Refund Apply for IGST refund under GST RFD-01 once goods are returned to the foreign seller. 4. Shipping ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bills (SB) Choose correct SB type (SB1, SB2, SB3, SB4) for reconciliation based on the nature of returns. 5. Proof of Return Attach evidence (shipment tracking, Airway Bill) to substantiate the return of goods to the foreign seller. 6. Complete Documentation Keep import documentation, Shipping Bills, and proof of return for customs and GST reconciliation. Important Points to Note: * Ensure you are correctly using Scheme Codes for BCD claim and IGST refund during the filing process. * IGST Refund can only be claimed when the goods are exported or returned, and the Shipping Bill must reflect this. * For any reconciliation of tax paid and goods returned, file the appropriate SB and BOE for each shipment. If you are unsu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, it is always advisable to consult a customs expert or a GST consultant to ensure compliance with the procedures and get assistance in filing these claims correctly. X X X X Extracts X X X X X X X X Extracts X X X X
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