Processing of Bills of Entry under ICES(I), relating to: Export Promotion Schemes DEEC,DFRC,EPCG, REP etc; End use Bonds/Undertaking/CEX Certificates/other - Customs - 143/2002

OFFICE OF THE COMMISSIONER OF CUSTOMS C.R. BUILDING : QUEENS ROAD : POST BOX NO 5400 BANGALORE- 560001 PUBLIC NOTICE NO: NO. 143/2002 DT. 01-10-2002 Sub : Processing of Bills of Entry under ICES(I), relating to: Export Promotion Schemes DEEC,DFRC,EPCG, REP etc; End use Bonds/Undertaking/CEX Certificates/other Miscellaneous Certificates from various agencies; Closure of Bonds/Undertaking Assessment of goods covered by Sub-headings 5513.23,5513.39 5514.21 of CTH-reg. All the Importers, Exporters, Customs House Agents, and members of the trade in general, officers of the Department and all others concerned are hereby informed that the Bills of Entry relating to goods availing exemptions under Export Promotion Schemes, other conditional exemptions subject to furnishing of End use Bonds/Undertaking Bonds and Re-export Bond will be processed under EDI-System w.e.f 01-10-2002 at Air Cargo Complex, Bangalore. 2.0 The Bills of Entry in respect of the following types shall be processed under ICES(Imports) - i. Export Promotion Schemes - DEEC, DFRC, EPCG, REP etc., ii. End Use Bonds for exemptions iii. End Use Undertakings for exemption iv. Re-Export Bonds for exemptions subject to re-export of imported goods v. Closure of Bonds/Undertakings vi. Assessment of goods covered by Sub-headings 5513.23, 5513.39 5514.21 of CTH The procedure to be followed for the above categories of Bills of Entry in respect of the Indian Customs EDI System(Imports) at Air Cargo Complex, Bangalore shall be as follows: 3.0 Processing of Bills of Entry under Export Promotion Schemes Bills of Entry relating to Export Promotion Schemes like DEEC, DFRC, EPCG, etc. which require a import licence for availing benefits of these exemption schemes will be processed under ICES(I). The following procedure shall be followed: 3.1 Registration of Licence Before filing of a Bill of Entry(B/E) under any such Export Promotion Schemes the related import licence will be required to be registered on the system. Data entry of the licence details will be made at the MSIL Service Center. For ease of data entry, details of the licence will be furnished by the licence holder in a specified format prescribed at Annexure-I enclosed to this Public Notice. The form is common for all types of licences. Some of the fields may not be applicable to a licence. Hence, only relevant details should be filled. Receipt of the Importer Exporter Code by the Customs Server at the Bangalore Air Cargo Complex will be prerequisite for licence registration. If any information which is necessary for a particular type of licence, is left unfilled, the system will not accept such incomplete information for registration of licence. The system will maintain ledger in respect of total face value, item wise quantity and value and credit for the same will automatically be created on registration of licence and debits will be made by system when electronic Bill of Entry(B/E) are processed, Release Advice(RA) is issued, manual Bill of Entry(B/E) is debited or reduction is made by amendment. To avoid any inconsistency and invalidity, the system will sum the value of all items and compare it with the face value of the licence. If the sum is greater than face value of licence, the system will not permit registration. The value will always be CIF for Imports and FOB for Exports. Where the value is in foreign currency it should be in only one currency and not in multi-currency. The licence holders should therefore, check these details in their licences and ensure that the same are correct before presenting the licence for registration. The licences with incorrect details will be rejected by the system and cannot be used for availing exemption from duty and clearance of goods. Such licences should be corrected by the DGFT office concerned before presenting to ICES(I) for registration. 3.1.1 The licences which have already been partially utilized will not be registered on the system and will continue to be handled on the manual mode. 3.1.2 After successful entry of licence details, a check list will be printed by the Service Center operator and given to the licence holder for confirming the correctness of the data entered. Service Center operator will carry out corrections if any and will return the checklist to the licence holder. 3.1.3 Licences should not be sent by post or through a letter to custom house but should be presented by a person who shall get the data entry done, verify the correctness of data on the check list and shall present the licence to the designated officer for registration and take possession of the same after registration. 3.1.4 Charges for data entry of licence and printing of checklist and making corrections in the data shall be collected by the Service Centre Operator at the rate of ₹ 40/- per licence, irrespective of the number of items in the licence. 3.2 Acceptance debit of bonds Where the export obligation has not been fulfilled and option 'N' has been entered in the field ' Exp. Oblg:', the system will ask for entry of bond number. Hence, if export obligation has not been fulfilled, the respective category of bond should be registered before registration of licence/RA. 3.2.2 The bond and bank guarantee will be accepted, registered and debited as per procedure already notified in Public Notice 19/2002 dated 29-1-2002 issued by this Commissionerate. 3.2.3 The Bond registered against a licence/RA will be utilized only in respect of clearances against that licence and at the time of filing Bill of Entry(B/E) electronically the bond will automatically be debited by system for the amount of duty foregone. 3.2.4 Bond types for export promotion schemes are as under: Scheme Bond type EPCG EC DEEC DE DFRC DE REPL DE 3.3 Registration of incoming Release Advice(R/A) Incoming Release Advice will be registered for the given value and quantity in the same manner as the respective licence. Partially utilized RAs will continue to be handled manually. 3.3.2 After successful entry of details, a checklist will be printed by the service center operator and given to the RA holder for confirming correctness of the data entered in the system. Service center operator will make correction if any and will return the checklist to the RA holder. 3.4 Submission of Licence/RA on the system The Licence/RA holder will present the check list of the licence/RA along with original documents to the designated officer authorized to exercise option of submission of licence/RA in the system. The designated officer will compare the details entered in the system with the original licence/RA. If the details are correct and the designated officer is satisfied about the admissibility of registration of licence he will submit the licence on the system on the basis of the job number of the check list. The system will generate a Licence Registration Number. This registration number and date should be endorsed in bold on the original licence/RA. After registration, the documents may be returned to the party and copies thereof alongwith the original checklist duly signed by the licence/RA holder may be kept in the office file for record. RA will be registered only on the basis of customs copy of the RA. After registration, customs copy and importer's copy of RA will be defaced by the designated officer 3.5 Issuing Release Advice against a licence Release Advice will be issued for utilization of a licence at any other customs station. Details for obtaining Release Advice shall be furnished in the Format given at Annexure-III to this Public Notice. Data entry will be done at the service center. A check list will be printed by the service center operator and given to the holder of the licence. The correctness of the data will be confirmed by him. Corrections if any will be carried out by the service center operator and a fresh print of corrected checklist will be given to the holder of licence. The holder of the licence will sign on the check list and present the same to the designated officer for issue of the RA. The designated officer will verify the details from the original licence and satisfy himself about admissibility of issue of RA. The option to issue the RA may be exercised in the system. The system will generate RA No. and three copies of the RA will be available for print. The check list signed by the holder of licence and the office copy of the RA will be retained by the designated officer for record. Importer's copy and Custom's copy of the RA will be issued to the holder of licence and the Customs Station where RA will be utilized for clearance of goods. No amendment of RA will be permitted after it has been issued by system. Fresh RA can be obtained for any further quantity/value or the licence can be re-credited by entering unutilized RA. No RA will be issued manually. 3.6 Debiting of licence Licence will be automatically debited in respect of Electronic Bills of Entry(B/E) and Electronic Release Advice. For debiting manual Bills of Entry(B/E) the figures of value and quantity will be entered by the Appraiser in the system through a Menu for this purpose. Entries of debits on the hard copy of the licence will be made by the importers and certified by the Appraiser as usual. 3.7 Exemption for Spare Parts under EPCG Scheme The system will create a ledger of face value and item wise value quantity. 3.7.1 Item S.No. '0' has been created for spare parts against EPCG licence. 20% of the CIF of the goods debited to a licence will be credited by the system as value permissible for import of spares under exemption notification against EPCG licence. This value of spares will be within the total face value of the licence i.e. the sum of value of all items including value of spares imported against EPCG licence will not exceed the total face value of licence. 3.7.2 No credit of value will be given for spares in case of imports against RA. RA is required to be obtained for spare parts also. If it is first import no RA will be admissible for spares. 3.8 Amendment of licence after registration Amendment in the licence data after registration can only be made by the designated officer. If the amount of value and quantity sought to be reduced is less than the unutilized balance available in the licence, amendments for reduction of value and quantity will not be permitted by the system. The system will give credit to quantity or value in the case of increase and will debit the quantity or value in the case of reduction. Therefore, only incremental or decremental quantity or value should be entered in respect of increase or reduction. Licence status code at the time of registration will be '0'. The licence if suspended or cancelled after registration, the designated officer shall amend the status code to '2', '3' and '4' for cancellation, suspension and reinstatement respectively. 3.9 Filing of Bill of Entry No changes in the format for declaration at service center for data entry of Bill of Entry are being made. 3.9.1 Licence Registration. Number., Registration Date details, value and the quantity should be furnished in the respective column at S. No. 39. D of the format already indicated in the Public Notice 34/2002 dated 22-02-2002 issued earlier by this Commissinerate.Sl.No.39 D of the Bill of Entry format is reproduced below for convenience. Item No Addl Duty Exm Public Notice.Requested Y/N Notification/Sl.No. Licence Regn. No. Licence Regn. Date Debit Value (Rs.) Debit Qty. Unit Item Sl. No. in Licence 1 2 3 4 5 6 7 8 9 3.9.2 Unit of measurement of quantity will be same as per the licence. In case the unit of measurement in the invoice is different from the one in the licence, for the purpose of debit in the licence the quantity should be converted in to same unit of measurement as in the licence. For spare parts against EPCG licence S.No. of item will be '0'. Hence, for availing benefits of exemption notification in respect of spares, Item S.No. '0' should be indicated in column 9 of the format indicated above. Against a single item in the Bill of Entry (B/E) only one licence will be debited. If the Quantity and/or the value in the licence is not sufficient to cover whole quantity and/or value of an item in the invoice, the invoice quantity should be split into separate items in the Bill of Entry (B/E) for debit against another licence or for normal assessment. 3.9.3 Bond/BG details should also be provided where ever so required. 3.9.4 After successful entry of data of the Bill of Entry (B/E) in the system, a check list will be printed by the service center operator and given to the importer/CHA. The importer/CHA will check the details entered in the system and errors if any pointed out to the service center operator for carrying out corrections in the system. The CHA/importer before returning the check list to the operator for submission of Bill of Entry (B/E) in the system should ensure that licence details are also correct. The operator will exercise option of submission of Bill of Entry (B/E) in the system. After submission of the Bill of Entry (B/E) in the system a check list of submitted Bill of Entry (B/E) should be obtained by the CHA/importer from the service center operator. This check list will incorporate Bill of Entry (B/E) number and item/licence wise details of debit of qty., value and duty forgone for debit in the Bond etc. 3.10 Assessment of Bill of Entry (B/E) All the Bills of Entry will be appraised in Group 7. For ease of distribution of various category of documents among the officers a provision has been made in the system to create any one or more of sub-groups in respect of the following Exim Scheme Codes: Group Name Exim Scheme Code 7 A 13,14 20 7B 6 7 7D 1,2,3,5 17 7G 11 12 7R 18 7N 8 9 7U 21 7 All in respect of which no sub-group created. 3.10.1 The System Manager may create sub-groups depending upon the load of documents. All the Bills of Entry in respect of schemes for which no sub-group is created will be routed to main Group 7. 3.10.2 The CHA/importer should present the check list obtained after submission of the Bill of Entry (B/E) to the designated officer along with all the required documents and the related licence and DEEC. The designated officer will check the correctness of details of licence/DEEC etc. and also ensure that any amendments made in the licence/DEEC subsequent to registration of licence, have also been entered in the system. If the Assessing officer is satisfied regarding the eligibility of exemption under the relevant notifications and the licence is otherwise valid to cover the goods in question, he may assess the Bill of Entry (B/E) on system. 3.10.3 The Assessing officer can remove the notification and deny the benefits of exemption. The debits of licence will automatically reverse. 3.10.4 The Bill of Entry (B/E) after assessment will be audited by the designated Auditor and finally approved by the AC/DC Group-7. The procedure of assessment will be similar to DEPB imports. 3.10.5 In respect of a manually assessed bill of entry details of value and quantity will be debited in the system by the officer at the time of assessing a Bill of Entry (B/E) and a print of details of debit will be taken for records. 3.11 Printing of the assessed Bill of Entry (B/E) After assessment, a print of assessed copy of the Bill of Entry (B/E) will be taken by the importer/CHA from the service center. This print of Bill of Entry (B/E) will contain duty payment challan if duty is payable and statement of debit of licence for value/quantity and debit of bond for duty foregone in respect of each item. The figures of these debits should be endorsed on the hard copy of the licence/DEEC. 3.12 Examination/Out of Charge Procedure for goods registration, examination, out of charge and printing of Bill of Entry (B/E) after out of charge will continue as per the existing procedure. 3.13 List of Notifications available for exemption under above schemes. Serial Number of the item in the notification indicated below are created for relevant rate of duty chargeable under notification and may differ from actual Serial Numbers in the Notification. Serial Numbers indicated below only should be used for data entry. Notfn. No. S.No. of item in Notfn. Schemecode Scheme name Exempted rates of duty Basic% CVD% SAD% 044/2002 1 11 EPCG 5 0 0 049/2000 1 11 EPCG 5 0 N/A 028/97 1 11 EPCG 10 0 N/A 029/97 1 11 EPCG 0 10 N/A 029/97 2 12 EPCG 0 0 N/A 110/97 1 11 EPCG 15 0 N/A 111/95 1 11 EPCG 0 10 N/A 111/95 2 12 EPCG 0 0 N/A 122/93 1 11 EPCG 15 0 N/A 160/92 1 11 EPCG 15 0 N/A 160/92 2 11 EPCG 25 0 N/A 047/2002 1 05 Adv.lic. Deemed export 0 0 N/A 051/2000 1 03 Adv.lic. 0 0 N/A 050/2000 1 05 Adv.lic. Deemed export 0 0 N/A 048/99 1 17 Adv.lic( Annual) 0 0 N/A 077/98 1 01 Adv.lic. (A.U.) 0 0 N/A 036/97 1 09 Imprest lic. 0 0 N/A 031/97 1 03 Adv.lic 0 N/A N/A 030/97 1 01 Adv.lic. (A.U.) 0 0 N/A 149/95 1 03 Adv.lic 0 0 N/A 148/95 1 03 Adv.lic 0 0 N/A 107/95 1 03 Adv.lic 0 0 N/A 080/95 1 03 Adv.lic 0 N/A N/A 079/95 1 03 Adv.lic 0 N/A N/A 104/93 1 03 Adv.lic 0 0 N/A 204/92 1 03 Adv.lic 0 0 N/A 203/92 1 03 Adv.lic 0 0 N/A 046/2002 1 18 DFRC 0 N/A 0 048/2000 1 18 DFRC 0 N/A 0 041/99 1 8 REP. Lic. 0 0 0 4.0 Bonds/Undertaking/Re-export bond for conditional exemptions Where the benefit of exemption under a notification is subject to execution of End use bond, Undertaking or Re-export bond, it would be necessary to register the respective type of bond in the system before filing of the Bill of Entry (B/E). The bond will be registered by the importer specifically for a notification. Details of the bond in respect of each notification should be furnished at SNO. 18 (See Public Notice 34/2002 dated 22-02-2002) in the format for declaration at Service Centre for data entry of Bill of Entry (B/E). The system will automatically debit the respective bond for amount of duty foregone on the basis of claim of exemption made for items in the Bill of Entry (B/E) under a notification. 4.2 For this purpose, a directory has been created in the system for the notification and Serial Number of item in the notification which require execution of end use bond, undertaking or re-export bond for availing exemption. Exemption under such notification will not be permitted by the system if respective bond/undertaking number has not been entered at the time of data entry of Bill of Entry (B/E). Therefore, all the importers who are claiming benefits of such exemption notifications should get respective bond accepted and registered in the system as continuity bond of that category in respect of each notification separately. The bond registered for one notification cannot be utilized for another notification. 4.3 Bond Codes for the types bond are as under: Bond type Bond code Bond Regn. No. End use bond EU Undertaking UT Re-export bond RE 5.0 Certificate from Central Excise Authorities Where the exemption notification provides for production of a certificate from the jurisdictional Central Excise authorities in terms of Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods ) Rules, 1996 the same should also be registered in the system. For this purpose, the certificate obtained from the central excise office shall be produced to the respective Assessing Group in the Customs House before filing the Bill of Entry (B/E). The designated officer in the assessing group shall register the same in the system in the same manner as the bonds are registered. The system will generate the registration number. This registration number should be communicated to the importer and the original certificate shall be retained in the Assessing Group. 5.2 Registration number shall be indicated at Sl.No. 18 (c ) in the Format for Bill of Entry (B/E) data entry. 5.3 Against one Bill of Entry (B/E) only one certificate should be used. The certificate shall be utilized against all such notifications requiring Central Excise Certificate. At the time of assessment, the officer may verify details of goods covered by the certificate and Bill of Entry (B/E) on the basis of original certificate retained in the group. A print of statement of items assessed on the basis of certificate can be obtained for making a reference to issuing Central Exice Authority. 6.0 Certificates from other authorities. Certain notifications require certificates for eligibility of exemption from various other organizations like Ministry of External Affairs, Defence etc. Such certificates can be entered in the system under the category of Misc. Certificates(MC). The following details will be entered; MC number and date Issuing authority and address. Such certificates can be viewed by Assessing Officer and also will be printed on the Bill of Entry (B/E) for verification in the Shed/Docks. 7.0 List of exemption notifications requiring Bond/Undertaking etc. Exemption notifications and the related Serial Numbers of items which require bond/undertaking/Central Excise certificates/or other miscellaneous are annexed to this Public Notice (Annexure - II ). However, if any of the notifications or any of its Serial Number are missing in the above list or any fresh notification is issued having such conditions or deleting existing conditions, the same may be updated in the system by the designated officer authorized to amend the directories. 8.0 CLOSURE OF BOND/UNDERTAKING The bond or undertaking would be closed by the AC/DC Bond. When the conditions of the bond/undertaking are complied with, the designated AC/DC dealing with the bond will enter the Bond No., and the system will display all the Bills of Entry and related Item Sl.Nos. in respect of which the bond has been debited. If the conditions of the bond have been satisfied the option to close the bond may be exercised item by item. When all the items against which respective bond has been debited are closed, the bond can be cancelled. However, if the Sl.No. of items are closed and the bond is not cancelled, the same will continue to be used if there is a balance in bond amount and validity period has not expired. All the documents on the basis of which the items are closed bond is cancelled will be kept in the related bond file for the purposes of record. 9.0 Assessment of goods under Sub-headings 5513.23, 5513.39 5514.21 of Customs Tariff. Aforesaid headings of Ist Schedule to Customs Tariff Act, 1975 impose duty on the basis of value or weight in KGS or area in SQM of the textile fabric covered under the said sub-headings and the duty chargeable will be the highest among the duties so determined on the basis of above mentioned three entities. It is therefore, necessary to capture quantity. in KGS and also the quantity. in SQM in addition to the value of such goods. Provision has been made in the system to enter quantity in KGS and quantity in SQM in respect of the above sub-headings. The system will calculate duty on value, on KGS on SQM and will determine the highest among the three amounts. The highest amount will be taken for levy of duty. The following Table 39-B.1 after Table 39. B (classification details) will be added in Appendix-A of Public Notice 34/2002 dated 22-02-2002. Table 39-B.1 For QTY in units of measurement other than declared in Col. 6 at 'A' above when duty is based on different quantities. (1) Invoice Serial Number [ ] (2) Actual Invoice Number [ ] ItemNo. (1) CTH (2) QTY in KGS (3) QTY in SQM (4) In case the quantity of goods in the invoice is in KGS as declared in Table 'A' under 'Details of Description of Items' col. (3) in the above table should be left blank and only qty in SQM in col. (4) above should be indicated. Similarly, if the invoice qty is in SQM, then only quantity in KGS in col. (3) should be indicated and col. (4) should be left blank. However, if the quantity in the invoice is in units of measurement other than KGS or SQM, in that case the quantity in KGS and SQM should be indicated in columns (3) (4) respectively. (A.P. SUDHIR) COMMISSIONER OF CUSTOMS