Circular No. 21/2006-Cus.
10th August, 2006.
Government of India
Ministry of Finance
Department of RevenueOnline GST Certification Course by TaxGuru & MSME- Click here to Join
Subject : Re-export of goods imported under Served from India Scheme (SFIS) and Vishesh Krishi and Gram Udyog Yojana (VKGUY) found defective or unfit for use – reg.
In terms of Para 3.18.2 and Para 3.19.9 of the Handbook of Procedures, Vol.I of Foreign Trade Policy, goods imported under Served from India Scheme (SFIS) and Visesh Krishi and Gram Udyog Yojana (VKGUY), which are found defective or unfit for use, may be re-exported as per guidelines issued by the Department of Revenue. In such cases 98% of the credit amount debited against the SFIS/VKGUY scrip shall be generated in the form of a Certificate.
2. The matter has been examined further by the Ministry and it has been decided that in cases where the goods imported under SFIS/VKGUY are found defective or unfit for use, the same may be permitted to be re-exported by the Commissioner of Customs subject to the following conditions :-
i) Re-export of goods takes place from the same port from where the goods were imported;
ii) The goods are re-exported within 6 months from the date of import;
iii) The Deputy Commissioner/Assistant Commissioner of Customs, as the case may be, is satisfied about the identity of the goods; and
iv) The goods are not put into use after import.
3. In such cases, on re-export of goods, 98% of the credit amount debited in the SFIS/VKGUY scrip shall be generated by the concerned Custom House in the form of a Certificate. The said Certificate shall also contain details of the original SFIS/VKGUY scrip and the value, quantity and description of the goods exported.
4. Based on the aforesaid certificate issued by Customs, the concerned Regional Authority shall issue fresh SFIS/VKGUY scrip for 98% of the credit amount for the same port of registration and the validity of the SFIS/VKGUY scrip so issued shall be for a period equivalent to the balance period available in the earlier SFIS/VKGUY scrip on the date of import of such defective/unfit for use goods.