Circular No.82/2001 – Customs
20th December, 2001

F.No.609/218/98 – DBK
Government of India
Ministry of Finance
Department Of Revenue

Subject:- Duty free import of embellishments upto 3% of FOB value of exports permitted to exporters of Textile garments in terms of Entry S.No.156 and 156A of amended Notification No.17/2001 – reg.

  AEPC have reported to the Board that duty free clearance of embellishments under the subject scheme has been recently allowed by one of the Customs House on the basis of export performance certificate issued by AEPC and without import entitlement certificate issued by AEPC certifying the value/quantity of embellishments already imported under the scheme .

2.In terms of Entry S.Nos.156 and 156A of amended Jumbo Customs Notification No. 17/2001 – Cus. dated 1/3/2001( as amended by Notification No. 43/2001- Cus dated 25/4/2001 ) various specified items of embellishments are allowed duty free import inter-alia by exporters of textile garments within specified limit subject to conditions specified in condition no. 19 of the said notification. Subject cluse ( C) of conditions 19 requires the importer to produce export performance certificate issued by AEPC certifying the value of exports made during preceding financial year in order to ascertain his duty free entitlement. It also requires proction of import entitlement certificate issued by AEPC certifying the value and quantity of goods already imported under this scheme during the current financial year. The objective of specifying this condition in the notification is to ensure that the garment exporter is allowed duty free import of embellishments only up to the specified limit and there is no misuse. The job of AEPC is to certify export performance and issue import entitlement certificate certifying the value/quantity of goods already imported free of duty under the scheme so as to enable Customs to ensure that no excass quantity is permitted import free of duty.

3. It is, therefore, emphasised that duty free clearance of embellishments in terms of Entry Nos.156 and 156A of Customs Notification 17/2001 should only be allowed by Customs in terms of condition 19 specified in the said notification after verifying the export performance certificate and import entitlement certificate both issued by AEPC. In addition, as a safeguard , in future, AEPC would confirm importer’s fresh request for duty free import by issuing “Current Shipment Request” on the back of such import Certificate which should also be cross-checked with import documents at the time of allowing of duty free clearance of embellishments under this scheme.

4. Suitable Public Notice for the information of Trade and Standing Order for the guidance of staff may be issued on the above lines.

5.Receipt of this Circular may pleas be acknowledged.

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