Circular No. 40/2003-Cus.
12th  May, 2003

(Amendment to Circular No.6/03-Cus. dated 28.1.2003.)

 F.NO.609/176/2002-DBK
Government of India
Ministry of Finance & Company Affairs
Department of Revenue

Sub :  Conversion of free shipping bills into Advance License/DEPB/DFRC/Drawback shipping bills and conversion of shipping bills from one export promotion scheme to another – regarding.

Kind attention is invited to DOR Circular No.6/2003-Cus. dated 28.1.2003 in terms of which conversion of free shipping bills into Advance License/DEPB/DFRC/Drawback shipping bills and conversion of shipping bills from one export promotion scheme to another was permitted in terms of Para 4 of the said Circular.  In terms of Para 4(i), conversion of free shipping bills was permitted provided the exporter was forced to file free shipping bill by Customs.  Similarly, in terms of Para 4(ii) conversion of shipping bill from one export promotion scheme to another was permitted provided benefit of that scheme was denied to him by DGFT or Customs.  Conversion in such cases was to be permitted by Commissioner on case to case basis subject to the conditions specified in Para 4 (a),(b) and (c) of the said Circular.

2. Trade has been representing that in cases where the exporter was forced to file free shipping bill by Customs at the time of export of goods, for the purpose of seeking conversion at a later date it becomes difficult for them to prove this fact.  This is because generally no written denial is issued by Customs.

3. The issue has been re-examined in consultation with DGFT/MOC and it is clarified that conversion of free shipping bills into Advance License/ DEPB/DFRC/Drawback shipping bills and conversion of shipping bills from one export promotion scheme to another (where the benefit of that Scheme has been refused by Customs/DGFT – vide para 4(i) of DOR Circular No.6/2003-Cus.) may be permitted on merits by the Commissioner on case to case basis subject to the conditions specified in Para 4(a),(b) and (c) of DOR Circular No.6/2003-Cus. dated 28.1.2003 and also subject to the following condition :-

“the exporter has not availed benefit of any export promotion scheme and no fraud/or suspected manipulation and no investigations have been initiated against the party in respect of such exports under these shipping bills”.

4. Suitable Public Notice for the guidance of trade and Standing Order for the guidance of field officers may be issued.

5. Receipt of this Circular may kindly be acknowledged.

R.K. Talajia
Officer on Special Duty (DBK)

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Category : Custom Duty (6694)
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