Inclusion of Export Promotion Schemes for Kattupalli Minor Port (INKATI), Kattupalli Village, Ponneri Taluk, Tiruvallur District 601 120 - Customs - Public Notice No. 82/2013

OFFICE OF THE COMMISSIONER OF CUSTOMS (SEAPORT - IMPORT) CUSTOM HOUSE, NO. 60, RAJAJI SALAI, CHENNAI - 600 001 F.N0.S.Misc.08/2011-Enq. Dated : 15/04/2013 Public Notice No. 82/2013 Sub : Inclusion of Export Promotion Schemes for Kattupalli Minor Port (INKATI), Kattupalli Village, Ponneri Taluk, Tiruvallur District 601 120 - Reg. Vide Notification No. 20/2013-Customs dated 03.04.2013, Kattupalli Minor Port (INKATI) has been included in various Customs Notifications issued for Imports under various Export Promotion Schemes. Accordingly, in continuation of the P.N. 263/2012 dated 12.12.2012 of this office, the following procedures have been prescribed to handle the Import and Export goods under such Export Promotion Schemes at Kattupalli Minor Port (INKAT1). 2. As the officers of Chennai Custom House has concurrent jurisdiction over Kattupalli Minor Port vide Public Notice No.263/2013 dated 12.12.2012 and Kattupalli Minor Port Location (INKATI) has been clustered with Chennai Custom House in ICES, the following groups are assigned to the work relating to Bills of Entry filed under various Export Promotion Schemes. Group Name Exim Scheme Codes Schemes 7A 13, 14, 20 Customs Clearance Permit, Import Licence for negative list of Import items, jobbing. 7B 06,07 DEPB Post Export and Pre Export 7D 01, 02, 03, 05, 17 Advance Licence 7G 11, 12 EPCG 7H 22, 23, 24, 25, 27, 28 DFCC, Target Plus, VKUY, FMS, FPS 7I 26 DEI-A 7R 18 DFRC 7U 21 EOU/EPZ/SEZ 7 All the Bill in respect of schemes for which no sub-group is created will be dealt by Group 7 3. The procedure relating to bond registration, licence registration and assessment of Bills of Entry and processing of TRAS are given as follows : 3.1 Imports under DEPB 7H Schemes (FPS/FMS/VKGUY/SHIS/SFIS/TPS etc) 3.1.1 Licence Registration/ Approval 3.1.1.1 Import under 7H schemes (FPS/FMS/VKGUY/SHIS/SFIS/TPS etc.) (i) Before filing of a B/E under above said Export Promotion Schemes the related import licence should be registered at the concerned section since all these licences are not transmitted online. (ii) For Registration of licences which are not transmitted online for DGFT, the licence holder may approach the concerned section with original licence. After successful entry of details, a check list will be printed by registration clerk and given to the licence holder for confirming correctness of the data entered. Registration clerk will make correction, if any and will return the same to the licence holder. It is the sole responsibility of the licence holder to verify and confirm the correctness of the data entered before proceeding further. License 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. After verification of the checklist he shall present the licence to the concerned Appraiser for registration and take possession of the same after registration. 3.1.1.2 Imports under DEPB Scheme DEPB scrips are being issued by the Licensing Authority against exports upto 30.09.2011. The ICES will continue to process DEPB scrips till the validity of the licence. 3.2 Transfer Release Advices (i) DEPB Licences registered in locations running on ICES 1.5 shall be available for automatic online debits against Bill of Entry filed at any of the ports which are operational under ICES 1.5. A common Ledger of licences shall be currently maintaining in the system for debits in respect of Bills of Entry filed at all the ICES location operating under ICES 1.5. Therefore, no TRA shall be required. However, for schemes under 7H outgoing TRA shall be issued for NON EDI Locations which are still operating manually. For this the outgoing TRA shall be generated in the system and a hard copy of TRA shall be issued. (ii) The TRAs issued by the non-EDI locations will be registered in the same manner as license registration. On registration of TRA against a DEPB, the system will generate a TRA registration number. This Registration Number should be endorsed on the Importer's copy of TRA (Original) and the Customs copy received from the issuing Customs station. Only fresh RAs will be registered in the EDI System. Partially utilized RAs will continue to be handed manually. (iii) The requirement of production of original DEPB licence with incoming or outgoing TRAs at the respective port of clearance shall continue as per instructions issued from time to time in this behalf. 3.3 Processing of Bills of Entry : (i) The scheme code 06 shall be entered at the relevant column at the time of submission of Bills of Entry at the service centre or through ICEGATE. (ii) In case more than one DEPB is required to be debited against one item, the importer will be required to indicate the DEPB Registration No. and CIF value of the goods for each DEPB to cover. the entire CIF value against that item. For each item claimed for exemption under DEPB, details referred to above will be required to be indicated. The System will determine the duty amount on the basis of CIF/Quantity of goods and shall debit the duty from the DEPB credit ledger and the CIF amount from the FOB of Exports. If sufficient balance to cover the CIF value and the Duty foregone is not available in the DEPB, the System will disallow submission of the B/E. (iii) The Board has approved complete inter chang eability i.e. cash and scrip for payment of Customs Duty. Accordingly, to facilitate the trade, an option to pay Additional Duty of Customs under sub-section (5) of Section 3 of the Customs Tariff Act, 1975 (Additional CVD) in cash through TR6 challan has been provided. For this at the time of data entry of BE, after entering the Scheme Code Notification, the system will prompt for Additional Duty Exemption required? The allowable flags in the ICES applications are as follows : 1. Y-flag Total payment through debit of Scrip - i.e. (BCD+CVD+Addl. CVD) is paid through use of scrip. 2. N-flag Cash and Debit Scrip - BCD through debit of scrip + (O/D+Addl. CVD) in cash. 3. E-flag Cash and Debit Scrip - (Basic + CVD) through debit of scrip +Addl. CVD in cash (v) Hereafter the Importer/CHA has to opt appropriate flag (Y or N or E) as per the description mentioned above to avail the facility at the time of filing Bill of Entry. (vi) If the basic Customs duty and the additional customs duty debitable to the licence is zero, the DEPB exemption will not be admissible to that item. System will not allow exemption under Notification 97/2009 for that item. 3.4 Assessment of B/E (i) The Appraiser/Supdt. will select the B/E on screen and assess the B/E in respect of all the items and shall countersign the debits in the original DEPB. The System will determine the duty amount on the basis of CIF/Quantity of goods and shall debit the duty from the DEPB credit ledger and the CIF from the FOB of Export. If sufficient balance to cover the CIF value and the Duty foregone is not available in the DEPB, the system will disallow submission of the B/E. In case, where importer wants to clear some quantity under DEPB Scrip and balance on duty payment then he should clearly indicate in B/E, the quantity/ Weight for which he want DEPB/payment of duty. (ii) After assessment by the Appraiser the B/E will move to the A.C/D.C for assessment. After AC/DC confirms the assessment, assessed copy of the B/E will be printed along with TR-6 Challan (if any) and duty will be paid as usual. (iii) Where the Appraising Officer/Supdt. during the process of assessment, denies the exemption claimed under Sl.NoB9E, (column 5 and/or 7) of Apendix, changes the tariff heading or enhances the value resulting in increase in the duty amount and the value, the Appraising Officer will have the option to enter the new DEPB for CIF Value corresponding to the enhanced duty'/CIF against that item. 3.5 DEPB Debit Ledger On registration of DEPB or TRA in the system, the System will maintain the ledger for duty credit amount and export FOB. Where the exemption from both the basic Customs duty as specified in the First Schedule to Customs Tariff Act, 1975 and additional duty leviable under Section 3 of Customs Tariff Act, 1975 are claimed, the sum of basic duty and additional duty amount will be debited to the duty credit in DEPB. The CIF of the related items will be debited to export FOB in the DEPB. Where exemption from additional duty is not claimed, only basic duty will be debited. These debits will be made by the Systems in the DEPB Ledger. If more than one DEPB is utilised against an item only CIF amount to be debited against each DEPB should be indicated by the importers. The duty amount will be proportionately calculated by the System for debit in the DEPB. The importers therefore should ensure that sufficient balance in the duty credit amount and export FOB is available in the DEPB to cover amounts of both components, for debiting, failing which the system will not accept the declaration for B/E. In case the importer desires to utilize the DEPB for part of the quantity of an item in the invoice, he may split the quantity of that item and prepare the declaration accordingly. 3.6 Debiting of DEPB against Manual B/E (i) If a Bill of Entry is processed manually, importers may choose to avail the exemption under the DEPB Scheme and get the DEPB debited for exempted amount of duty'. In such cases manual B/E will be assessed as usual. After assessment, the amount of duty forgone due to exemption under DEPB and the CIF of goods imported being cleared against DEPB will be computed manually in respect of each DEPB scrip. (ii) The designated officer in the assessing group will debit the original DEPB. He will also enter the amount of duty foregone and the CIF of the exempted goods in the System, in the respective field of duty credit and export FOB. The debit screen can be accessed through the DEPB Registration Number. After debiting, the System will print the statement of debits of the DEPB in triplicate. The copies of this print will be attached with the manual B/E, DEPB file and DEPB scrip. Importers are therefore required to register the DEPB license even when clearances are sought against manually assessed B/E. 4. Processing of B/E under other Export Promotion Schemes requiring Import Licence : Bills of Entry relating to Export Promotion Schemes like DEEC/ADVANCE AUTHORISATION, DFRC/DFIA, EPCG etc. which require import licence for availing benefits for exemption notifications will be processed under ICES 1.5. The procedure mentioned below will be followed : 4.1 Registration of Licence (i) Except Annual Licences (DEEC and EPCG) all other licences are transmitted online directly from DGFT Before filing of a B/E under any such Export Promotion Schemes the related import licence should be submitted in the system. For non transmitted licence schemes, the licences have to be registered at the concerned section. (ii) For manual registration of licences which are not transmitted online from DGFGT, the licence holder may approach the concerned section with original licence. After successful entry of details, a check list will be printed by registration clerk and given to the licence holder for confirming correctness of the data entered. Registration clerk will make correction, if any and will return the same to the Licence holder. It is the sole responsibility of the licence holder to verify and confirm the correctness of the data entered before proceeding further. License 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. After verification of the checklist he shall present the licence to the concerned Appraiser for registration and take possession of the same after registration. 4.2 Acceptance Debit of Bonds (i) At the time of registration of licence by the Appraiser in cases 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. Therefore, if export obligation has not been fulfilled the respective category of Bond should be registered before registration of licence / (ii) The Bond registered against a licence / RA will be utilized only in respect of clearances against that licence and at the time of filing B/E electronically the Bond will automatically be debited by system for the amount of duty foregone. Bond types for export promotion schemes are as under : Scheme Bond Type EPCG EC DEEC DE DFRC DE (iii) The Bond may also be registered with Bond Type (NB) for uritilising the bond at all the customs locations for the said licenses, so that the Bond with Bond Type NB may get automatically debited at the Customs location where the B/E is filed under the licence. 4.3 Registration of Incoming Transfer Release Advice (TRA) (i) If both sender and receiving Customs location are operating on centralized ICES version 1.5, no TRA need to be issued. A common centralized licence ledger shall be maintained by the system for utilization of licence for value and quantity. (ii) TRAS received from non-ICES location shall be registered like a licence for the portion of value and quantity covered in a TRA. Only fresh TRAs will be registered in the EDI system. Partially utilized TRAs will continue to be handled manually. (iv) After successful entry of details a checklist will be printed by the concerned Registration Clerk and given to the RA holder for confirming correctness of the data entered in the system. Registration Clerk will make correction if any and will return the same to the RA holder. 4.4 Submission of Licence/TRA in the system The license/TRA holder will present the check list of the licence/TRA along with original documents to the proper officer. The officer will compare the details entered in the system with the original licence/TRA. After satisfying himself with correctness, will submit the licence in the system on the basis of the job number of the check list. The system will generate a licence Reg. No. This registration number and data should be endorsed in bold on the original licence/TRA. After registration, the documents may be returned to the Importer and copies thereof may be kept in the office file for record. TRA will be registered only on the basis of Customs copy of the TRA. After registration, Customs copy and Importer's copy of TRA will be defaced by the Officer. 4.5 Issuing TRAs Transfer Release Advice will be issued for utilization of a licence at any other Customs station. No TRA needs to be issued for Customs location operating of ICES Version 1.5. TRA shall be issued only for non-ICES location. All TRAs against the licences registered in the system shall only be generated from system. Details for obtaining Release Advice shall be furnished in the Format given at 'Annexure-E'. Data entry will be done by the registration clerk. A check list will be printed for verifying the correctness by the applicant and for his signatures. Correction if any will be carried out by the registration clerk. The authorized Appraiser will thereafter verify the details from the original licence and satisfy himself about admissibility of issue of TRA. The system will generate TRA No. and three copies of the TRA will be available for print. The check list signed by the licence holder and the office copy of the TRA will be retained by the Appraiser for record. No amendment of TRA will be permitted after it has been issued by system. Fresh TRA can be obtained for any further quantity/value or the licence can be re-credited by entering unutilized TRA. No TRA will be issued manually. 4.6 Debiting of Licence Licence will be automatically debited in respect of Electronic B/E and Electronic Transfer Release Advice and for debiting manual B/E. For debits of licence value and quantity, in the case of electronic Bill of Entry the system shall make debits automatically on the basis of value and quantity of item in the Bill of Entry. For debiting against manual 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. 4.7 Exemption for Spare Parts under EPCG Scheme (i) The system will create a ledger of face value and item wise value quantity item S. No. 'O' 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. (ii) No credit of value will be given for spares in case of imports against TRA. It may be noted that TRA is required to be obtained for spare parts also. In case of first import, no TRA will be admissible for spares. 4.8 Amendment of licence after registration As and when the licences are amended by the DGFT, the same has been transmitted online. The Licence Holder may approach the concerned Deputy / Asst. Commissioner for approval of the same. 4.9 Filing of Bill of Entry (i) Licence Registration No., Regn. Data details, value and the quantity should be furnished in respective column at S. No. 39E of the Appendix. (ii) Unit of measurement of qty. will be same as per the licence. In case the unit of measurement in the invoice is different than the one in the license, for the purpose of debit in the licence the qty 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 'O' therefore, for availing benefits of exemption notification in respect of spares item S. No. 'O' should be indicated in column 9 of the Format indicated above. If the Qty /or value in the licence is not sufficient to cover whole qty /or value of an item in the invoice, the invoice qty should be split in to a separate item in the B/E for debit against another license or for normal assessment. Bond/BG details should also be provided wherever so required. (iii) Where B/E if files at Service Centre, after successful entry' of data of the 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/imported before returning the check list to the operator for submission of B/E in the system should ensure that licence details are also correct. The operator will exercise option of submission of B/E in the system. After submission of the B/E in the system a check list of submitted B/E should be obtained by the CHA/Importer from the service center operator. This check list will incorporate B/E number and item/licence wise details of qty., value and duty foregone for debit jn the Bond etc. 4.10 Assessment of B/E (i) The CHA/Importer should present the check list obtained after submission of the B/E to be Appraiser along with all the required documents and the related licence. The Appraiser will check the correctness of details of licence/Scheme etc. and also ensure that any amendments made in the licences/Schemes, subsequent to registration of licence, have also been entered in the system. If the Assessing officer is satisfied about the eligibility of exemption under related notification and the licence is otherwise valid to cover the goods in question, he may assess the B/E on system. The Assessing Officer can remove the notification and deny the benefit of exemption. The debits of licence will automatically reverse when exemption notification is denied. -fill rollout of RMS, the B/E after assessment will be audited by the Auditor and finally approved by the AC/DC. The procedure for assessment will be similar to DEPB imports. (ii) In respect of a manually assessed Bill of Entry details of value and quantity will be debited in the system by the Appraiser at the time of assessing a B/E and a print of details of debit wilt be taken for records. 5. IMPORTS BY 100% EOUs 5.1 Registration of EOU All the 100% Export Oriented Units including STP/EHTP etc. will be required to be registered as EOIJ in the System before filing of a Bill of Entry. The designated officer shall make data entry for registration of an EOU. All verifications and authentications including ail checks to determine the eligibility of the importer to be registered as an EOU and for exemption from duties shall be carried out before a unit is registered in the System as an EOU. Following details should be furnished by the EOU for registration. 1. EOU type : I.A - EOU - General I.B - EOU - Aquaculture I.C - EOU - Agriculture / Floriculture I.D - EOU - Granite I.E - EOU - Gems and Jewellery I.F - EOU - Others (specify) II - STP III - EHTP 2. EOU Approval No. 3. Approving Authority 4. Approval date 5. Valid tilt 6. Importer Exporter Code (IEC) 7. IEC Branch Code 8. ECC (Assessee's Excise Control Code) 9. Central Excise office location code 10. Commissionerate 11. Division 12. Range Separate Registration would need to be made for each factory (based on the various branch codes of the IEC) in case a 100% EOU has more than one factory. 5.2 Filing of Bill of Entry Entry of Bond details (i) In the Appendix format for declaration for data entry S. No.18 has been added to capture the details of registration of various Bonds including the Bond for 100% EOUs. (ii) For a Bill of Entry for imports by 100% EOU indicate :- Y' for Bond No if Bond is already executed with Customs at the point of import; C' for Cex. Certificate where the Bond is executed with Central Excise authorities and a procurement certificate has been issued by them, 'N' where neither Bond is executed nor Central Excise Certificate is obtained before presenting the Biff of Entry. Where the option given is 'N' the system shall require the Bond to be executed after assessment but before registration of B/E for examination out of charge. The impotter should indicate in the format the type of Bond as EO for 100% EOUs and indicate details of the Bond No. or the Central Excise certificate as the case may be. If Bond or Central Excise Certificate are not indicated it would be t N' i.e. NONE. The data entry operator shall enter the related option Y or C and enter the details of the Bond or the certificate as the case may be in the respective field in the system. (iii) In the field of claim of assessment normal details shall be indicated. However, in the fields of 'Additional information for claiming benefits under specified exemption schemes' in Col. (I) the prescribed EXIM code for the relevant scheme related to imports like EOU/STP/EHTP would require to be indicated. The EXIM codes for the various schemes have already been notified in the Handbook of Procedures issued by DGFT. In column No.2 the relevant applicable exemption notification No. and the Year with S. No. of item in the notifications is required to be indicated against the respective item. After completion of entry of all the items of the Bill of Entry, a check list will be printed. In the check list against an item where EOU exemption is claimed the works (EOU) notification no. / yr S. No. will be printed. At the end of the check list details of Bond indicating the Bond no. Bond Code, amount debited, Bank Guarantee debited or the details of certificate for central excise will be printed. (iv) The importer/CHA shall check the correctness of the details in the check list and return it to data entry' operator for submission of the same in the system. On submission, the Bill of Entry shall be directed to the concerned Group assessment. 5.3 Appraising of EOU B/E (i) The importer / CHA shall present the un-assessed Bill of Entry along with the Bonds/ certificate and other documents supporting the claims of assessment under EOU to the designated Appraiser / Supdt. for making assessment. The Appraiser shall select the relevant Bill of Entry on the screen and complete the assessment on the system after scrutiny of the documents. The system will display EOU Bond details of Central Excise certificate. The appraiser will also be able to view the details of EOU approvals. (ii) In case the importer has already executed the Bond and it is registered in the system, the system will display the amount debited in the Bond which is equal to the duty foregone. . If the appraiser desires to change the amount of debiting the Bond he can change the amount for the Bond debit BG. Where the BG is not required the amount in the field of BG should be entered as 0 (zero). The appraiser has the option of removing EOU notification where the importer is not found to be eligible for the exemption, Till rollout of RMS, after processing by the Appraiser the B/E will be audited by the Auditor and thereafter processed by the AC/DC. After the assessment, print of the Bill of Entry can be obtained from Service Centre. (iii) In case the importer has executed the Bond with the central excise authorities, he shall produce the procurement certificate issued by the Central Excise Officer to Assessing Officer along with the un-assessed copy of the Bill of Entry. Assessment of Bill of Entry would be done after due verification of all the concerned documents. After completion of the assessment, the Bill of Entry shall be put to Bond queue for execution / debiting of Transit Bond. Unless the Bond is debited in the system, the B/E will not be available for registration for examination and out of charge. A letter to CEX Authorities requesting for confirmation about re-warehousing will be sent from the Bond Section. 6. AVAILING EXEMPTION UNDER JOBBING SCHEME Notification No. 32/97-Cus exempts goods imported for carrying out any job work and re-export subject to conditions specified in the said notification. Importers claiming the said exemption would be required to indicate the relevant EXIM code and Notification in the columns Additional information for claiming benefit under specified exemptions schemes . A Bond has to be submitted with the EOU/Jobbing Section for registration with bond type JO . The Bond type 30 will be indicated in the format for data entry, the Scheme code will be 20 and the exemption notification will be 032/97 item S. No. 1. On submission, print of checklist of the B/E will be taken and presented to the designated Appraiser along with all requisite documents. The Assessment procedure is same as prescribed earlier for other schemes. 7. PROCESSING OF SHIPPING BILLS UNDER VARIOUS EXPORT PROMOTION SCHEMES IN EDI 7.1 All the Shipping Bills involving at least one Export Promotion Scheme covered under Chapter 4 of the Foreign Trade Policy notified by the Ministry of Commerce shall be assessed by the Appraiser (Export) and then sent through system for Goods Registration. However, the following categories of S/B shall be assessed by the Assistant Commissioner/ Deputy Commissioner (AC/DC Exports) whether or irrespective of the fact that these SBS were earlier assessed by the Appraiser. i. Drawback SBS where drawback amount is more than 1 lakh or FOB amount is more than 10 lakhs. ii. EOU/DEEC/EPCG SBS if the FOB value is more than ₹ 10 Lakhs. iii. DFIA SB if FOB value is more than ₹ 5 lakhs. iv. Free Trade Sample S/B for FOB value above ₹ 25,000 7.2 Apart from verifying the value and other particulars for assessment, the AO/Supdt. and AC/DC may call for the samples for confirming the declared value or for checking classification under the Drawback Schedule / DEEC / DEPB / DFRC / EOU etc. He may also give special instruction for examination of goods. 7.3 If the S/B falls in the categories indicated in Paras 7.1 and 7.2 above, the exporter should check whether the S/B has been cleared by Assistant Commissioner/Deputy Commissioner, before the goods are brought for verification. In case AC/DC raises any query, it should be replied through the Service Centre or through ICEGATE, for those exporters/CHAs who are registered with ICEGATE. After all the queries have been satisfactorily replied to, AC/DC will pass the SIB. 8. EXPORT OF GOODS UNDER 100% EOU SCHEME The Exporters can get the export goods examined by Central Excise / Customs Officer at the factory even prior to filling of Shipping Bill. Self sealing facility is also available. He shall obtain the Examination report in the form annexed as Annexure B' to this Public Notice duly signed and stamped by the Examining Officer and Supervising Officer at the factory. The export invoice shall also be signed and stamped by both the officers at the factory. Thereafter the goods shall be brought to the concerned Customs Warehouse for the purpose of clearance and subsequent 'Let Export'. The Exporters/CHA shall present the goods for registration along with Examination Report in 'Annexure B', ARE-I, Export Invoice duly signed by the Examining Officer and Supervising Officer at the factory, check list, declaration in form Annexure 'A', Annexure 'B' and other documents such as document of transportation, ARE-I etc. to the Examiner in the concerned shed. After registration of goods, the shipping bill will be marked to an Examiner in the concerned shed. After registration of goods, the shipping bill will be marked to an Examiner for verification of documents and seal. If seal is found intact the Shipping Bill will be recommended for LEO, which will be given by the Shed Appraiser. However if seal is not found intact, the goods will be marked for examination and LEO will be given if the goods are found in order. 9. EXPORT OF GOODS UNDER THE EPCG/DES SCHEME 9.1 The procedure for online transmission of Licences/Authorisations issued under Duty Exemption Scheme (DES) (except those issued under Scheme Code 17) and Export Promotion Capital Goods Scheme (EPCG) for DGFT to Customs through an Electronic Exchange System is operational at this port in respect of DES/EPCG licences issued on or after 1 st March 2009. As per the procedure prescribed by DGFT, Exporters apply for Advance licences under Duty Exemption Scheme (DES) and licenses under Export Promotion Capital Goods Scheme (EPCG) to DGFT. As per the Handbook of Procedures Vol. I, exports under DES can be started immediately on generation of file no. which is generated by DGFT on submission of application for licenses under DES. Accordingly DGFT would transmit the messages relating to File Numbers so generated by them to Customs as to enable customs to permit exports under DES. As, the exports under EPCG can be started only after issuance of license; the DGFT would transmit the License messages immediately on issuance of licenses under DES and EPCG Scheme. The licenses under above mentioned schemes issued by DGFT would be received online by Customs. Such licenses would be subjected to the prescribed online valuation checks at ICEGATE and thereafter, the same would be available for use by the exporters at the port of registration for Imports. Details of such licenses would also be available on the home page of website, www.icegate.gov.in. As mentioned above, exports under DES can be started immediately after receipt of file number message from DGFT by quoting the relevant File Number allocated by DGFT on the export documents. After issuance of licenses, exporters would be required to quote the relevant license number on the export documents. 9.2 There is no need of registration of file number/license number and obtaining a Customs Registration number at this port. As the licenses issued under DES/EPCG will now be received online from DGFT and would be available at this port, Importers would be required to produce the hard copies of the licenses issued by DGFT along with bonds/LUTs and execute BG in accordance with the provisions of the Customs Circular(s) in force and as per the statutory requirements of the relevant Customs Notifications, to the designated officer, at this port as this port is the port of registration in the licenses, for raising debits in bonds/LUTs and monitoring such bonds/LUTs. Importers are required to quote the license number on the respective import documents in case they intend to use the licenses. No manual debits would be made in hard copies of licenses at the time of assessment of Bill of Entry for imported cargo. 9.3 For monitoring of export obligation under licenses issued by DGFT under above mentioned schemes, Customs would transmit online all such Bills of Entry and Shipping Bills to DGFT wherever imports/exports have been affected under licenses received online from DGFT under DES/EPCG schemes. DGFT would transmit online an Export Obligation Discharge Certificate (EODC) in prescribed format containing details of Shipping Bills to Customs which would also be made available at this port. Based on this EODC, the designated officer at this port would release the bonds/LUTs and the BG, if any, after causing necessary verification. 9.4 For any amendment, in licenses issued under the above schemes by DGFT, importer would obtain a log print of usage of license in prescribed format. DGFT would process amendment(s) of license based on log print of usage of license issued by Customs and transmit online the necessary amendment(s) of license to Customs. No imports under such license would be allowed after issuance of log print till the amendment message is received from DGFT. 9.5 The above procedure would be applicable in respect of file nos. / Licenses/ Authorisations issued under Duty Exemption Scheme (DES) and Export Promotion Capital Goods Scheme (EPCG) on or after 1 st March 2009 by DGFT. The existing procedure in case of manual registration of file nos./Licenses/Authorisations issued under these schemes on or upto 28th February 2009, would continue to be followed. 9.6 In case of EPCG/DES (EXCEPT THOSE ISSUED UNDER Scheme Code 17) issued on or after 01.03.2009 there is no need of any registration at this port. However, in case of EPCG/DES issued prior to 01.03.2009 and DES issued Scheme Code 17, the exporters intending to file Shipping Bills under the aforesaid schemes including those under the claim for Drawback should first get their EPCG/DES (issued upto 28.02.2009 by the DGFT) registered with this port, which would be done by the designated officer. The original EPCG/DES would need to be produced before designated officer for data entry. A print out of the relevant particulars (checklist) entered will be given to the Exporter/CHA. The EPCG/DES would need to be presented to the Appraiser/Supdt., who would verify the particulars entered in the computer with the original EPCG/DES and register verify the same in the EDI System. The Registration No. of the EPCG/DES would be furnished to the Exporter/CHA, which would need to be mentioned on the declaration forms (Annexure D) at this port for export of goods. It would not be necessary thereafter for the Exporter/CHA to produce the original EPCG/DES for processing of the export declarations. 9.7 All the export declarations for EPCG/DES would be processed on the system by the Appraiser/Superintendent (Export) and the AC/DC (Exports). After the declarations have been processed and accepted, the goods can be presented at the Export Shed along with EPCG/DES for examination and Let Export as in other export goods. All exporters availing of the EPCG/DES facilities are requested to immediately get their EPCG/DES registered in the EDI System so that the export declarations are processed expeditiously. 9.8 Further, exporters availing of EPCG/DES benefits in terms of various notifications should file the relevant declarations in Annexure D along with Annexure c. 9.9 It is further clarified as follows : a. While giving details relating to EPEC/DES operations in the form at Annexure D, the exporters/CHAs should indicate the S. No. of the goods being exported in the column titles ITEM S. No. in EPCG/DES PART E of Annexure D. b. If inputs mentioned in EPCG/DES only have been used in the manufacture of the goods under export, in Column titles ITEM SR. NO. in Advance Authorisation of Annexure D, the exporters/CHAs are required to give S. No. of inputs in Part-C of the DES Book and Exporters need not fill up column titled DESCRIPTION OF RAW MATERIALS . c. If some inputs which are not in Part-C of the EPCG/DES have been used in the manufacture of the goods under export and the exporter wants to declare such inputs, he shall give the description of such inputs in column titled DESCRIPTION OF RAW MATERIALS . d. In the column IND/IMP , the exporters are required to write N , if the inputs used are indigenous and M , if the inputs used are imported. e. In column titled Cess Scheme S'. No. the relevant Serial No. of the Schedule relating to Cess should be mentioned. 10. All the other procedures, instructions prescribed in respect of processing of documents in ICES and manually, procedure relating to documents process through RMS, collection of documents, storage etc. issued in respect of Chennai Custom House shall be applicable mutandis-mutandis to imports or exports made through Kattupalli Minor Port. Difficulties if any, faced by the Trade/CHA shall be brought to the notice of the undersigned, immediately. (JANE K.NATHANIEL) COMMISSIONER OF CUSTOMS (SEAPORT - IMPORT)