F.NO.S/16-MISC-284/2000 Gr.VII 24.04.2000

PUBLIC NOTICE No.49/2000

Introduce New scheme of export- "Duty Free Replenishment Certificate" (DFRC)-reg.
Attention of all the Exporters, CHAs and other concerned is drawn to Para No. 7.4 of Exim Policy as on 01/04/2000 vide which a new scheme of export known as "Duty Free Replenishment Certificate" (DFRC) has been introduced. The parallel notifications and detailed instructions from Ministry of Finance for operationalising the scheme are still awaited. In the meantime representations have been received from the trade for permitting under the new scheme.

Under DFRC Scheme, exporters are eligible for import of inputs used in the manufacture of goods without payment of basic Customs Duty, Surcharge and special additional duty, but import goods will be leviable to additional Customs Duty equal to Excise Duty. The exports under said Scheme are permissible only in respect of those export products which are covered under Standard Input-output norms as notified by DGFT. The exporters are thereofre required to ensure that only those goods are exported under DFRC scheme for which standard input output norms have been fixed.

The exporters exporting goods under DFRC Scheme without claiming Drawback shall file "shipping bill for export of duty free goods(white shipping bill)" on the top of the shipping bill they shuould write exports under DFRC scheme on each copy. Exporters will file the said shipping bill in quadruplicate, original to be retained in the Custom House, duplicate for recording examination order and to be retained by Customs docks. The triplicate shall be Export promotion copy and quadruplicate, DFRC copy on which the examination report shall be recorded. ON quadruplicate it shall be specifically mentioned "DFRC Copy" and shall be retained by the exporter.

The exporters intending to claim Drawback as well as benefit under DFRC shall file "Green Shipping Bill for export of goods under claim for Duty Drawback" in quintuplicate. On each copy exporter shall write "Shipping Bill for export of goods under claim for Duty Drawback and DFRC". The original copy will be retained by the Customs Department, Triplicate shall be drawback copy, quadruplicate shall be E.P. copy and quintuplicate shall be DFRC copy to be retained on duplicate, triplicate (Drawback claim copy) and on quintuplicate i.e. DFRC Copy. The Drawback shall be claimed on the strength of Drawback Copy.

The DFRC shall be issued for import of inputs as per standard Input-Output Norms having same quality, technical characteristic and those inputs used in the export products and as indicated in the Shipping Bill. In order to avoid any disputes at the time of imports, the exporters are advised to mention SION Number on each shipping bill. The list of all inputs and technical characteristic of each input shall be mentioned on the shipping bill alongwith the quantity used.

As an illustrative example, say an exporter intends to export Ready Made Garments and Duty Free Input is Fabrics. The following details in respect of fabrics are necessary :-

i. Composition of fabrics i.e. Percentage of various fibres and in case of synthetic fabrics, whether fabrics is made of spun yarn of filament and whether made of textured filament or not.

ii. Whether the fabrics is dyed, printed or yarn dyed with multi colour yarns.

iii. GSM of the fabrics used.

iv. Whether woven fabrics or knitted fabrics and in case of knitted fabrics, whether the same is pile fabrics or looped pile fabrics etc. The composition or knitted fabrics shall be mentioned.

Similarly, in respect of exports of plastic items the exporter shall declare type of plastics used in the export product and grade of the polymer. The exporters of Engineering goods shall declare type of steel used and composition of the goods exported so that import of similar goods may be allowed without any dispute. In case the technical characteristics cannot be declared on the body of shipping bill, same may be declared on a separate sheet which shall be attached with each copy of shipping bill.

In respect of exports under DFRC Scheme, samples shall be drawn on random basis. However, in respect of exports of same item to same buyer at same rate, only one sample may be drawn out of ten shipping bills.

As Customs Notification in this regard is yet to be issued, the exports shall however be permitted with an endorsement on the shipping bill that benefits under the scheme shall be permitted "only in conformity with the Ministry of Finance (Deptt. Of Revenue) notifications on the subject" and any other guidelines issued in this regard. The exporter shall also be required to furnish a declaration on the shipping bill as under :-

"I/WE request to permit exports under DFRC Scheme and fully understand that all export benefits including DFRC entitlement and Drawback shall be determined in conformity with the notifications / instructions issued by Ministry of Finance".

This Public Notices shall be applicable for all the Customs Commissionerates of Mumbai Customs Zone for uniformity.

SD/-25.4.2000
(R. SHARMA)
COMMISSIONER OF CUSTOMS (EP)


ATTESTED BY


(A.K. MADAN)
DY. COMMR. OF CUSTOMS