Verification of availment of CENVAT credit and valuation of export goods when declared FOB is more than 150% of value declared in ARE-1 -reg. - Customs - STANDING ORDER No. 02/2015

OFFICE OF THE COMMISSIONER OF CUSTOMS (NS IV) JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA, TAL. URAN, DIST. RAIGADH, MAHARASHTRA 400 707. F.No. S/12-Gen- Misc-237/2014-15 DBK JNCH Date: 15.01.2015 STANDING ORDER No. 02/2015 SUB: Verification of availment of CENVAT credit and valuation of export goods when declared FOB is more than 150% of value declared in ARE-1 -reg. Attention of officers is drawn to Drawback Schedule which prescribes different rates for disbursal of drawback on export goods depending upon, whether the CENVAT credit has not been availed (A) or availed (B) as mentioned in the schedule. 2. During online processing of drawback claims, the drawback department is not able to expeditiously sanction such drawback claims, where the examination reports/comments in the shipping bills in system are found silent on the issue of verification of availment of CENVAT credit or facilities of notifications issued under Rule 18 or 19 of Central Excise Rules 2002 . This delays the disbursal of drawback. To facilitate the trade, the docks officers are directed to ensure that in inspection/examination reports /comments in shipping bills , where ARE-1 / ARE-2 is mentioned in the shipping bills, the fact of availment or non-availment facility of ; (i) CENVAT credit under CENVAT Credit Rules 2004, or (ii) Notification 21/2004 Central Excise (N.T) dated 06.09.2004 ( Claim for rebate of duty paid on materials used in the manufacture or processing of finished export goods) issued under Rule 18 of Central Excise Rules 2002 ,or (iii) Notification 43/2001 Central Excise (N.T) dated 26.06.2001 (Removal of input material without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, for use in the manufacture or processing of finished export goods) issued under Rule 19 of Central Excise (No.2 Rules) 2001, must be mentioned compulsorily. 3. If the FOB value declared in the shipping bill is found to be more than 150% of the value declared in ARE-1 , the matter should be brought to the notice of Dy./Asstt. Commissioner of Customs in charge of CFS from where the goods are being exported for further verification in this regard. Moreover in case of project exports wherever the FOB value is found to be more than 150% of ARE-1 value, value declared in the ARE-1 must be mentioned in the inspection/examination reports /comments in shipping bills. 4. Wherever ARE-1 / ARE-2 is not declared in the shipping bill the officers shall not make any endorsement of shipment on such ARE-1 / ARE-2 produced subsequently, unless due procedure for amendment of such shipping bill has been followed. 5. These instructions are also applicable in case of export goods under RMS facilitated shipping bills and the shipping bills for factory stuffed goods sealed in containers. Sd/-15.01.2015 ( S.H.Hasan) Commissioner of Customs N.S. II