CUS CIR NO. 11/2007 DATE 13/02/2007

Dispensing with Verification of DEPBs at EDI ports in the light of Electronic Transmission of Shipping Bills and DEPBs.
I am directed to invite your attention to the Board’s Circular No. 14/99-Cus dated 15.3.99 dealing with verification of DEPBs. In terms of this Circular read with Mumbai Custom House Standing Order No. 7418/98, dated 18.12.98, the DEPBs issued by DGFT are subjected to a verification process by Customs at the port of registration. This is to ensure, inter alia, that the goods covered by the shipping bills have actually been shipped and also to ensure that the same shipping bill is not used more than once for getting the DEPB and that the credit utilized is not more than the credit allowed in the DEPB.

2. In 2005, vide Public Notice No. 57 (RE-2005) / 2004-09 dated 6.10.2005, an amendment had been made in paragraph 4.49 of Handbook of Procedures dealing with verification of DEPBs by the Customs. In terms of the amended paragraph, DEPBs issued on the basis of EDI shipping bills transmitted electronically by Customs to DGFT and the DEPBs sent to Customs through an Electronic Message Exchange System are not required to be verified by the Customs authorities at the port of registration.

3. Pursuant to this amendment, the matter was examined by the Board and in order to facilitate the trade, a procedure for online transmission of shipping bills to DGFT as well as DEPBs from DGFT has been put in place. As per this, the DEPBs issued by DGFT would now be received online by Customs. Such DEPBs would be subjected to the prescribed validation checks online and thereafter, the same would be available for use by the importers. Details of such DEPBs would also be available on the home page of website, www. icegate.gov.in. However, as a purely temporary measure till the procedure gets stabilised, it has been decided that the importers would be required to produce the hard copies of the DEPBs issued by DGFT to the designated officer at the respective Custom House i.e. ports of registration mentioned in the DEPBs before such DEPBs are allowed to be utilised.

3.1 It has been further decided that henceforth, in respect of the DEPBs received online, the DEPB number would need to be mentioned on the bill of entry if such DEPBs are intended to be used for payment of duty instead of the registration number as is the practice with respect to manually verified DEPBs.

4. The jurisdictional Commissioners of Customs may accordingly implement the above instructions from a specified date in consultation with the Directorate General of Systems. The procedure prescribed in Circular No. 14/99 dated 15.3.99 would, however, be continued in respect of DEPBs issued before such specified date and in respect of DEPBs received manually at non-EDI stations.

5. A suitable Trade Notice and Standing Order may be issued for the guidance of the trade and staff. Difficulties faced, if any, in implementation of the Circular may be brought to the notice of the Board at an early date.

Receipt of this circular may please be acknowledged.

F.NO.605/210/2005-DBK

Yours faithfully,
(Dr. M. Subramanyam)
Director to the Govt. of India
Telefax:23360581

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