prpri Passbook scheme for duty free imports -CBEC Instructions Passbook scheme for duty free imports -CBEC Instructions
Circular No. 62/95- Cus.
dated 7/6/95
F.No. 605/74/95 – DBK
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject :  Pass Book Scheme introduced vide para 54 of the Exim Policy announced on 31st March, 1995 – Notification No. 104/95-Customs – regarding

In the revised edition of the Exim Policy published on 31st March, 1995, Ministry of Commerce have introduced a new scheme called the Pass Book Scheme vide para 54 of the Policy, The procedure for this Scheme has been provided in para 114. In order to give effect to this scheme, Ministry has issued Notification No. 104/95- Customs dated 30th May, 1995. In order to ensure that the scheme is implemented uniformly by the major Custom Houses at Delhi, Bombay, Calcutta and Madras, to which this scheme is confined, the following guidelines are issued which may be followed:-

(1) Posting of designated authority by the Director General of Foreign Trade.

The Scheme provides for posting of a designated authority by the D.G.F.T. in each of the four major Custom Houses. The said authority will be under the control of Director General, Foreign Trade but will discharge their functions under the overall direction and supervision of the Commissioner of Customs at the respective Custom Houses. Suitable office accommodation-cum-facilities may, therefore, be provided to the designated authority in the Custom House.

(2) Exports under the Scheme

As has been provided in provided in para 114 of the Handbook of Procedure and the notification, all exports under the Scheme should be on Shipping Bills for free goods or on Shipping Bill for dutiable goods, since no drawback is admissible on the goods for which benefits of this scheme is claimed by the exporter. The exporter will require to indicate boldly on the face of S/Bill that export is under Pass Book Scheme in terms of para 54 of the Exim Policy and the conversion to a drawback S/Bill will not be sought. The exporter should also be required to make the following declarations on the S/ Bills:-

(i) I / We are exporting these goods under Pass Book Scheme in terms of para 54 of the Exim Policy.

(ii) The goods are covered by Standard Input- Output Norms notified by Ministry of commerce in Handbook of Procedure, Vol II at Sl. No. …………under the product group……………..

(iii) We shall not claim any drawback or benefit of an advance licence under Duty Exemption Scheme in respect of exports made against this S/ Bill.

(3) Examination of Export Goods

While processing the Shipping Bills for the goods tendered for export, the description and the nature of the export goods, should be examined carefully with reference to description of export goods as well as the nature of the input allowed in the Standard Input- output Norms under which benefit of credit of basic Customs duties on such input used in the manufacture of export product is claimed by the exporter. Examination of the export goods should also be done properly with the above purpose in view.

(4) Credits in the Pass Book

The Scheme provides for credit of basic customs duties on inputs used in the manufacture of export product as per input/output Norms to be permitted by the designated authority. For this purpose designated authority will be formulating their own procedure for working out the amount of credit. However, in terms of Notification No. 104/95-Customs such credits shall be given in the Pass Book only after verification by Assistant Commissioner of Customs. For this purposes commissioners would prescribe a suitable Porforma of claim for the exporter as done for indicating inputs under Duty Exemption Scheme and / or Duty Drawback Scheme which will be annexed to the Shipping Bill. The verification of such data and the eligible claim of credit should be conducted to ensure that the amount of credit has been worked out at the correct rates of duties applicable for the inputs for which such credit is sought are comparable with the international prices of such input as on the date of export. In must be ensured that credit is limited to only basic duty of Customs. The Pass Book shall be valid for credits only for a period of two years from the date of issue.

(5) Import against Pass Book

The Scheme permits import of any items not covered by the negative list of import in the Exim Policy and list of sensitive items under Duty Exemption Scheme in the Handbook of Procedure, Vol. II. The Exim Policy and the relevant paras of the Handbook of Procedures Vol. I & II and the relevant Customs Notifications may be referred to for details. In all cases where benefit of exemption against this notification is claimed, goods shall be assessed to duty and the amount of duty including additional duty livable but for exemption shall be calculated and indicated on the Bill of Entry to enable the designated authority to debit the same in the Pass Book. The amount of duty to be debited should be indicated in figures as well as words on the Bill of Entry by the assessing officer as being done for normal imports. Since there is no collection of duty by cash or by adjustment in P.D. Account, the D. E. should be given the A.D.F. number only after debit has been made by the designated authority in the Pass Book and a certificate to this effect is endorsed by the designated authority on the Bill of Entry, also indicating Pass Book No. in which debit has been made. Any credit in the Pass Book not utilised within three year from the date of issue of Pass Book lapse and, therefore, cannot be utilised for seeking exemption in terms of aforesaid notification.

(6) Maintenance of records

All imports and exports under this Scheme should be handled in Apprising Group No. VII of the Costumes House which handles imports and exports under Duty Exemption Scheme. Separate record of duty foregone under the Scheme should be maintained by the Group and reported in the monthly statement of duty foregone against different types of licenses issued under Duty Exemption Scheme and E.P.C.G. Scheme etc.

2. Suitable standing orders/ departmental orders should be issued for the guidance of staff and public Notice for information of trade. Copies of the standing order/ Public Notice should be forwarded to Commissioner (DBK) as well as Director General of Inspection Audit (C & CE), New Delhi.

(A.K. Madan)
Under Secretary to the Government of India

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