Discharge of Export Obligation under DES/ EPCG Scheme -Licensing Authority to be Monitoring agency.
Circular No.24/1996-Cus.date 19/4/96Subject: Monitoring of export obligation under Duty Exemption Scheme and E.P.C.G. Scheme - Instructions issued vide Circular No-131/95-Customs dated 20.12.95- Modification regarding-
Attention is invited to Ministry's Circular No. 131/95 dated the 20 December, 1995 clarifying the scope of certain amendments to notification issued under DEEC and EPCG Scheme particularly for discharge waiver of Bond to be executed with the Customs Authority. The DGFT have observe that the Circular militates against the fact that monitoring export obligation remains the primary responsibility of the licencing authority.
2. It is now provided that while the Bond/BG would continue to be furnished to the Customs, for discharge of Bond, the exporter must obtain a Certificate from the Licencing authority that the export obligation has been discharged. Thus, henceforth a certificate from the licencing authority must be insisted upon in addition to the exporter/Advance Licence Holder furnishing a Customs-endorsed Part-F of DEEC BOOK (Part-II), and DEEC/EP triplicate copies of relevant Shipping Bills.
3. Where exports are completed in full, and waiver of Bond is sought, the samewould be decided by the Assistant Commissioner of Customs after a similar certificate has been obtained from the licencing authority and furnished at time of import.
4. For the discharge of Bond executed in term of Notification No.128/94 Customs relating to Special Imprest Licencing Scheme, the only evidence required would be a certificate of the Licencing authorities confirming discharge of obligation under the said notification.
5(a). For discharge of export obligation under E.P.C.G. Scheme also, a certificatefrom Licencing authority confirming that export obligation has fulfilled may also be insisted upon.
5(b). In case of exports of Service providers under E.P.C.G. Scheme, it may not be possible even otherwise for Customs authorities to monitor export obligation directly since no export of goods is involved. In such cases, certificate by the Licencing authority certifying due discharge of export obligation is necessary as evidence of discharge of export obligation.
6. The instructions issued vide Circular No.131/95-Cus dated 20.12.95 stand modified to the above extent.
SD/-
(A.K. Madan)
Under Secretary to Govt. of India
F.No.605/166/95-DBK
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