TMI BlogVerification Mechanism and monitoring of export obligation under duty exemption / reward Schemes - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... rification Mechanism and monitoring of export obligation under duty exemption / reward Schemes - reg . I am directed to invite your attention to the above-mentioned subject and to say that, several references have been received, requesting the Board to put in place a verification mechanism in respect of the duty credit scrips issued under Chapter 3 schemes of the Foreign Trade Policy (FTP) and in respect of the Export Promotion Schemes viz. Advance Authorization / Duty Free Import Authorization (DFIA) / Export Promotion Captial Goods (EPCG) schemes. 2. The matter has been examined by the Board in the light of the conditions specified in the notifications regarding monitoring of export obligation in respect of Advance Authorizatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horization schemes registered at their port to check the correctness of the address shown on the Authorization. This is important, as the EPCG notification requires installation of the capital goods and the Advance Authorisation scheme (and DFIA scheme in some cases) contemplates actual usage of the imported goods. Such verification may be carried out during the validity of the Authorisation and preferably through the Central Excise divisions. d) Action to safegaurd customs revenue should be initiated in case the authorization holder does not submit the Export Obligation Discharge Certificate within the time period stipulated in the relevant Customs notifications. e) As regards the duty credit scrips issued under Chapter 3 of FTP, the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional duty of unfulfilled portion of export obligation along with specified interest from the date of clearance of the goods and such payment should be made within 3 months from the expiry of said block. Monitoring of export obligation is an integral part of verification mechanism. This would facilitate faster redemption of Bonds / Bank Guarantee executed under the above schemes. In view of above, the Jurisdictional Commissioners of Customs are directed to put suitable systems in place to initiate timely action in all cases of default. 4. The guidelines issued in the past on the subject shall be modified to the above extent. 5. These instructions may be brought to the notice of the trade / exporters by issuing suitable Trade / Public No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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