CUS CIR NO. 06/2003 DATE 28/01/2003

Conversion of free shipping bills into Advance License/ DEPB/DFRC/Drawback shipping bills and conversion of shipping bills from one export promotion scheme to another-reg.

In terms of Para 2.56 of Handbook of Procedure, Vol.I of 2002-2007 EXIM Policy, in cases where the exporter is denied benefit of one export promotion scheme by Customs or DGFT, he is permitted to avail benefit of another export promotion scheme provided otherwise he is entitled to the benefit of such scheme. DOR has issued couple of Circulars in the past in terms of which conversion of free shipping bill into drawback shipping bill or Advance License shipping bill into old Pass Book shipping bill etc. is permitted subject to fulfillment of specified conditions.

2. With effect from 1.4.97. DEPB Scheme came into operation. Similarly with effect from 1.4.2000 DFRC Scheme was brought into operation. On account of non issue of instructions permitting conversion of shipping bill into DFRC/DEPB shipping bill, each and every case containing request for such conversion is being referred to the Ministry for taking a final decision, DOR has also come across cases where the exporters were not allowed to file shipping bill under a particular export promotion scheme (Advance License/DFRC/DEPB) and as a result the exporter had to export his goods against free shipping bill. In such cases also the exporters later on come up with a request to permit conversion from free shipping bill into shipping bill under one of the export promotion schemes or Drawback shipping bill to enable him to avail benefit of that export promotion scheme or Drawback respectively.

3. The issue has been examined in Board. Export Promotion Schemes viz. Advance License/DFRC/DEPB/Drawback are in operation so that the exporter can avail its benefit. Therefore, in cases where the exporter wanted to avail benefit of a particular export promotion scheme but he was forced to file a free shipping bill by Customs or in cases where benefit of an export promotion scheme was denied to the exporter by Customs or DGFT, in all such cases conversion of shipping bill may be allowed, subject to the condition laid down below.

4. It is, therefore, clarified that in the following types of cases conversion of shipping bill may be allowed:

i) Where the exporter wanted to avail benefit of an export promotion scheme (including Drawback) but he was forced to file free shipping bill.

ii) Where an exporter had filed shipping bill under a particular export promotion scheme but benefit of that scheme was denied to him by DGFT on Customs. Conversion in the aforesaid types of cases may be allowed by the Commissioner on case to case basis subject to the following conditions:


a) On the basis of available export documents etc., the fact of use of inputs is satisfactorily proved in the resultant export product for the purpose of allowing conversion into Advance Licence/DFRC/DEPB/Drawback Schemes.

b) The examination report and other endorsements made on the shipping bill/export documents prove the fact of export of the export product and the export product is clearly covered under relevant SION and DEPB Schedule as the case may be.

c) On the basis of S/Bill/export documents the exporter is fulfilling all conditions of the said Scheme & is eligible for its benefit.

5. Suitable Public Notice for the guidance of trade and Standing Orders for the guidance of field officers may be issued.

6. Receipt of this Circular may kindly be acknowledged.

Sd/-
(R.K. Talajia)
O.S.D. (DBK)

F.No.609/176/2002-DBK

(Please refer CUS CIR NO. 04/2004 DATE 16/01/2004)

(For above Para 4 refer Cus. Cir. No. 40/2003, Dt. 12/05/2003 - Conversion of free shipping bills into Advance license / DEPB / DFRC / Drawback shipping bills and conversion of shipping bills from one export promition scheme to another)

(Please refer CUS CIR NO. 14/2003 DATE 06/03/2003)

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