TMI BlogDRAFT - Systems Alert for Monitoring Realisation of Export Proceeds in EDI - Reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Tax Appellate Tribunal, New Delhi Sir/Madam, Subject:- Systems Alert for Monitoring Realisation of Export Proceeds in EDI - Reg. I am directed to invite your attention to the above mentioned subject. 2. In terms of the provisions of Section 75 (1) of the Customs Act, 1962 read with sub-rule 16A(1) of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 where an amount of drawback has been paid to an exporter but the sale proceeds in respect of such export goods have not been realized within the time allowed under the Foreign Exchange Management Act (FEMA),1999, such drawback is to be recovered. Sub-rule 16A(2) stipulates that if the exporter fails to produce evidence in respect of realization o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exports made under the Drawback Scheme. Extensive consultations were held with field formations and trade industry in this regard, and subsequently, the matter was examined by the Board. For monitoring the realization of export proceeds for drawback purposes, the Board has decided that the exporters will submit a certificate from the authorized dealer (s) providing details of shipment which remain outstanding beyond the prescribed time limit including the extended time, if any, allowed by the authorized dealer/RBI on quarterly basis. However, the status holders and other exporters who are permitted to realize export proceeds within a period of 12 months or more will submit certificates once in six months only. Such certifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) The exporter shall submit a certificate from the Authorized Dealers (AD) containing details of the shipments which remain outstanding beyond the prescribed time limit, including the extended time if any, allowed by AD/RBI. A proforma for furnishing such negative statement is enclosed as Annexure-I. Alternatively, the exporters may furnish BRCs. (e) Such certificates shall be furnished by the normal exporters on quarterly basis before the 7 th day of January, April, July and October in respect of exports which have become due for realization in the previous month. For example for the quarter January to March 2008 (during which exports were effected), the statement / BRC would need to be submitted by the 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xporter in the given period, the officer will choose option (2). The system will automatically display the SBs pertaining to the given period on screen and all such shipping bills shall be deleted from the alert list. iii. If the negative statement furnished by the exporter gives the list of SBs for which foreign exchange has not been realized (and by implication foreign exchange has been realized for all other SBs) then, the officer will choose option (3). This will allow the officer to enter the SBs for the given period for which the BRCs are pending. Thereafter, all SBs except such pending SBs will be deleted from the alert list. iv. The BRC entry module also enables the Department to remove the list of SBs from the alert li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nexure II in respect of all the Drawback Shipping Bills having LEO dates from 1.1.2004 to 30.6.2007 within a period of two months of implementation of this module. 8. In addition to the alerts issued by the system, the Commissioners shall, by way of audit, exercise special checks in case of first time exporters, exporters who have taken large amounts of drawback suddenly, sensitive destinations, sensitive products etc. so as to ensure that there is no misuse of the drawback facility. They shall also exercise random audit checks in respect of other exporters to ensure that all export proceeds are realised. A proper record of all such audit checks and the period of audit should be maintained. 9. A suitable Public Notice and Standing Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng realization Remarks like whether exporter has been granted extension or applied for extension or waiver or any other reasons for non-recovery Place: Date: Signature and details of Authorised Dealer (AD) Name and address of AD: Code no. Annexure-II Details of exports from 1.4.2004 to 30.6.2007 for which export proceeds are pending realization 1. Name of the exporter : 2. IEC No. : 3. Port of export : 4. Whether Star Export Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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