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Post export conversion/amendment of Shipping Bill/Bill of Export based on instrument after the goods have been exported.

Instrument” means any scrip or authorisation or licence or certificate or other document, by whatever name called, issued under;

(i) Foreign Trade (Development and Regulation) Act, 1992 or Foreign Trade Policy such as MEIS (Merchant Exports from India Scheme), SEIS (Services Exports from India Scheme), Advance Authorization, EPCG etc.

(ii) Duty credit maintained in the customs automated system in the form of an electronic duty credit ledger issued under section 51B of the Customs Act, 1962 with respect to a reward or incentive scheme or duty exemption scheme or duty remission scheme or other scheme bestowing financial or fiscal benefits.

(“RoDTEP duty credit will be maintained under section 51B of the Customs Act, 1962 as per Custom Circular 23/2021 dated 30.09.2021”).

Such Instrument may be used by the person to whom it is issued or the person to whom it is transferred (in case of transferable Scheme such as MEIS, SEIS, RoDTep etc.), towards making payment of Customs duties (BCD on Import, IGST on Imports of Goods etc.).

Recovery of duties where instrument issued to a person has been obtained by means of fraud [Section 28AAA of the Customs Act 1962]

Where an instrument issued to a person has been obtained by him by means of fraud/collusion and such instrument is utilised by a person other than the person to whom the instrument was issued (i.e. transferee/holder of duty credit in case of transferable scrip), the duty relatable to such utilisation of instrument shall be deemed never to have been exempted or debited and such duty shall be recovered from the person to whom the said instrument was issued.

For the purposes of recovery the proper customs officer shall serve notice on the person to whom the instrument was issued requiring him to show cause, within a period of thirty days from the date of receipt of the notice, as to why the amount should not be recovered from him.

As stated above the duty relatable to such utilisation of instrument obtained by means of fraud shall be deemed never to have been exempted or debited, hence shipping bill required conversion/amendment to enable such conversion/amendment Shipping Bill (Post export conversion in relation to instrument based scheme) Regulations, 2022 is notified vide Notification No. 11/2022-Customs (N.T.) dated 22nd February, 2022.

“Conversion” means amendment of the declaration made in the shipping bill or bill of export to any other one or more instrument based scheme, after the export goods have been exported.

(Such as MEIS to Advance Licence, MEIS to RODTEP and vice versa etc.)

Instrument based scheme” means a scheme involving utilization of instrument such as MEIS, SEIS, Advance Licence, and EPCG Licence RODTEP Credit Scrip etc.

Time limit for applying for post export conversion/amendment of Shipping Bill

– The application for conversion/amendment shall be filed in writing

– Application for conversion/amendment shall be made within a period of one year from the date of order for clearance of goods.

– Commissioner of Customs may extend the aforesaid period of one year by a further period of six months

– Chief Commissioner of Customs may extend the said period of one year and six months by a further period of six months.

– Every application for conversion shall be decided within a period of thirty days from the date of application.

The period, during which stay was granted by an order of a court or tribunal, shall be excluded for computation of time limit.

Corporate Compliance Calendar for March, 2022

Conditions and restrictions for conversion of Shipping Bill

– The applicant shall fulfil all conditions of the instrument based scheme to which conversion is being sought

– The exporter has not availed benefit of the instrument based scheme from which conversion is being sought;

– No condition, specified in any regulation or notification, relating to presentation of shipping bill or bill of export in the Customs Automated System, has not been complied with.

– No contravention has been noticed or investigation initiated against the exporter under the Act or any other law, for the time being in force, in respect of such exports.

– The shipping bill or bill of export of which the conversion is sought is one that had been filed in relation to instrument based scheme.

Prepared by: CA Rajnish Kumar working as Manager Indirect Taxes and Transaction Advisory at M/s. Osgan Consultants Private Limited may be contacted at Mobile +91-8130883807 & Email carajnishkumarca@gmail.com for professional advice.

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