CUS CIR NO. 82/2003 DATE 09/09/2003

Misuse of Non-quota Entitlement against export of Garments to Russia by 63 Indian exporters-reg.
Kind attention is invited to DOR Circular No.58/2003-Cus. dated 16.7.2003 on the above subject. In Para 3 of the said Circular it was conveyed that export incentives in respect of 63 Indian exporters listed in AEPC Public Notice dated 6.2.2003 in respect of garment exports to Russia against Non-Quota Entitlement should not be released until completion of final investigation by Ministry of Textiles and AEPC.

2. Representations have been received in the Board that as a result of DOR Circular No.58/2003-Cus. some Custom Houses have stopped/ withheld even current import/export consignments of these 63 Indian exporters. Further, duty drawback and benefit of various export promotion schemes is also being reportedly withheld by some custom houses even though it complies the requirement of Customs and other allied Acts/Laws. In this regard Ministry of Textiles has also conveyed that it was not their intention to withhold/stop current import/export consignments of these 63 Indian exporters.

3. The issue has been discussed with Ministry of Textiles and it has been re-examined in the Board. It has been decided that in respect of garment exports to Russia made by the said 63 Indian exporters during the year 2001 under non-quota entitlement, pending drawback benefits may be granted on merits after ascertaining -

(i) that the goods were physically exported;

(ii) export proceeds have been duly realized from the country where they have been exported; and

(iii) drawback benefits are otherwise admissible as per law.

As regards all other imports/exports made by aforesaid 63 Indian exporters including current import/export consignments of garments and all other items, so long as the requirement of duty drawback scheme and other export promotion schemes are met and the goods are exported/imported as per law, the imports/exports may continue to be allowed as hitherto.

4. Suitable Public Notice for Trade and Standing Order for the guidance of customs field formations may be issued.

5. Receipt of this Circular may please be acknowledged.

R.K. Talajia
Officer on Special Duty (DBK)

F.NO.605/61/2003-DBK

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