PUBLIC NOTICE No. 102/2002, Date 23.08.2002

Procedure of DEPB verification-reg.
Imp: 46
Exp : 46

Attention of all Exporters/CHA’s/Trade is drawn to P.N. 176/98 dated 18/12/98.

The procedure of DEPB verification laid down in this Public Notice has been reviewed by Mumbai Customs. It has been observed that certain modifications are required for strengthening the procedural safeguards in order to prevent abuse of DEPB Scheme by unscrupulous persons. The following procedure shall henceforth be followed in modification and suppercession of the procedure followed hitherto.

2 (a) Only the holder of DEPB Scrip, his authorised employee or his authorised CHA will be permitted to submit documents in the DEPB Verification Section.

(b) In case of submission under “Self” Category, the holder of the DEPB Scrip or the authorised employee of the Company/firm or his/their authorised CHA who will submit DEPB Scrip shall obtain identification number from the DEPB Section. For this purpose a certificate issued by the DEPB Scrip holder in favour of the person as per format given in the Annexure-D shall be presented in duplicate to the clerk. The details shall be entered in a register as per the profroma given in Annexure –D shall be presented in duplicate to the clerk. The details shall be entered in a register as per the proforma given in Annexure – E and continuous running serial number in the form xxx/year shall be given against this entry by the clrek in his own handwriting. This number shall be identification number for the person concerned and shall be endorsed by the clerk under his signature and stamp on both the copies of the certificate. One copy of this certificate shall be returned to the concerned person and another copy shall be kept in office records in a separate file, which shall be under the personal custody of the clerk and shall be kept under lock and key by him.

(c) Submission of documents :- Once a person has been registered as above on the recommndation of a company/firm, he/she will be eligible to submit and receive DEPB Scrips of the company/firm for verification. However, for all scrips presented for verification, an authority letter issued by the licence holder in the proforma given Annexure – F which must contain the registration number of the person and the scrip number to be submitted, shall be attached in the respective verification files. The file along with other documents shall be submitted to the receiving clerk. The receiving clerk shall verify that the file is being submitted by the authorized person.

(d) In case, a CHA other than the one engaged by the exporter at the time of export shipment is submitting the documents, the application will be signed by the proprietor/partner of the CHA firm. He will also certify that for processing of the documents before customs he has not engaged the services of any person who is not in the roll of his employment.

3. The DEPB scrip and triplicate copy of the shipping bill in original with the photocopies of documents duly authenticated by the exporter as detailed in Annexure – a will be submitted by the authorized/representative of the exporter/CHA as above. At the time of receiving the DEPB Scrip, the information as detailed in Annexure – B will be submitted in triplicate. The receiving clerk will verify whether the original DEPB Scrip and triplicate copy of shipping bill and any other original documents submitted is correctly tendered at the time of submission. The receiving clerk will sign on copy of the acknowledgement as detailed in Annxure – C (to be submitted in triplicate) in token of having received the DEPB scrip. Two receipts will be retained in the file and one copy will be given to the authorized person after giving the required serial number. The person submitting DEPB scrip will affix his signature, full name, CHA no. , Cardex No. in the application as also in the Annexure – B to be maintained for the purpose in the DEPB verification section. The DEPB scrip along with other documents shall be accepted for verification by the designated counter clerk in Group VII only from 10 a.m. to 3 p.m. on each working day.

4. All DEPB scrips received shall be distributed by the receipt clerk amongst alphabet clerks simultaneously who shall enter the DEPB particulars in the Alphabet Register against respective S/Bills immediately on receipt. Thereafter, the DEPB verification files shall be given by alphabet clerks to the Examiners according to alphabet wise distribution already in force. This distribution should be completed before O’clock on the same day. The Examiners shall personally verify the particulars of S/Bs from data available in the computer and ensure that the goods covered by S/B have already been shipped and so figure in the relevant EGM. In other words, they must compare the name of the exporter, description of the goods, number of packages, security number of the S/Bills, date of saling, etc., with the data available on the computer. In case of any discrepancy, particulars should be verified from the hard copy of the EGM till the system of entering EGM details in the computer is put in place. After verification of shipment details, the E.O.’s will also check the correctness of credit permitted in the DEPB and hand over files to the respective Appraisers on the same day as per the charge distribution, with endorsements in respective files. They shall also sign in full on the reverse of the DEPB scrip in the prescribed place in token of having completed the verification. All DEPB copies of S/Bills shall be defaced by drawing two red lines diagonally on the entire length of S/Bills.

5 The Appraisers scrutinize the file to ensure that proper verification of fact of the shipments as been completed by the Examiner and then check the correctness of DEPB rates having been applied for grant of credit. After verifying the correctness of DEPB scrips in all respects, the file shall be submitted by them to the Asstt. Commissioner with full signature on the reverse of DEPB scrip in full at the prescribed place. The process of verification by Appraisers and counter-signature by the Asstt. Commissioner should be completed on the same day i.e. on the day after receipt of the DEPB scrip, and the original file shall be returned to the dealing Examiner by that afternoon.

6 On receipt of files duly contersigned by the Appraisers and Asstt. Commissioners on the DEPB scrips, the Examiners shall register all the DEPB scrips which have been verified in the computer system and endorse the registration No. and date on the reverse of the DEPB scrip. Verified DEPB scrips shall thereafter be endorsed by perfirated stamp in the cash section under the personal supervision of the concerned Examiner. This process should be completed latest by 12 o’clock on the third day. Duly verified and embossed DEPB scrips shall thereafter be handed over to the receipt clerk who shall detach the DEPB scrip from the files and return the files to the Examiner for safe custody. The DEPB scrip, once registered at any of these places shall be debited only at the respective place of registration and if clearance of the goods is desired from a place other than the place of registration, it shall be allowed only against a Release Advice.

7 Duly verified DEPB scrips detached by the receipt clerk shall be distributed across the counter to the persons from whom the scrips were received, in the afternoon of the third day itself between 3 p.m. to 5 p.m. Accordingly, the scrips received on a particular day shall be verified and distributed on the 3rd day i.e. scrips received on Monday forenoon shall be distributed on Wednesday afternoon whereas scrips received on Friday forenoon shall be distributed on Tuesday afternoon. The scrips shall be delivered against surrender of acknowledgement issued to the person who has submitted the DEPB scrips for verification and his signature in token of having collected the DEPB scrip shall be obtained in the same register. DEPB scrips should be delivered only to the person who had submitted the same for its verification and not to any other person. DEPB scrip not collected on the due day shall be kept by the clerk in safe custody under lock and key. The DEPB scrips not collected within 7 days of the submission should be entered in a separate register which should be put up to the A. C. (Admn.) for his information and directions on every Monday of the week.

8 In terms of condition (vii) of Notification No. 34/97-Cus dated 07.04.97 and Not. 45/02 governing exemption from duty under the DEPB scheme, where benefit of exemption from duty is claimed by a person who is not a DEPB holder, such benefit shall be admissible only against a specific amount of credit, not being a provisional credit, transferred by DEPB holder to such person. This means that clearance against DEPB to any person other than DEPB holder can be permitted only against specific amount of credit transferred by the DEPB holder himself. Hitherto, the Custom House has been permitting against DEPB transferred to the importer through intermediaries i.e. even in cases where DEPB was transferred by a DEPB holder to a third person who in turn transfers it to some other persons and ultimately to the importer. However, this is not the intention of the said Customs Notification. It is therefore clarified that henceforth exemption of duty in terms of Notification No. 34/97-Cus and 45/02-Cus shall be permitted to a person other than a DEPB holder only where a specific amount of DEPB credit has been transferred by the DEPB holder to the importer directly.

9 All debits of DEPB shall henceforth be made on computer with reference of the Registration No. alloted at the time of verification by the Examiner. The Bills of Entry after assessment by Appraisers and countersignature by the Asstt. Commissioner shall be presented for debit in the computer cabin located on the 4th floor of the Annexe Building. DEPB debits on the computer system shall be in addition to manual debits in the ledger registers being maintained at present, till further orders.

10 (I) In case the exporter is seeking issue if General Release Advice (GRA) for its utilization in any other Custom House in Mumbai or Nhava Sheva, then at the time of granting of approval for verification of the DEPB scrip, the AO and the Dy. /Asstt. Commissioner should also pass appropriate orders for GRA. Hence at the time of submission of documents for verification, if a GRA is required, the application should simultaneously be made by the exporter/CHA representative. This will save reprocessing of documents for GRA.

(ii) In case where the exporter DEPB licence scrip holder is seeking issue of GRA at the time of seeking verification by Dy./Asstt. Commissioner, the clerk issuing the GRA will maintain a proper record of the GRA being issued, under the signatures of Appraising officer/Dy. Commissioner DEPB Verification Section.

(iii) One copy of the GRA will be handed over to the Cha/Exporter. The list of all GRAs will be faxed on daily basis from the DEPB Verification Section to the concerned Dy. Commissioner of Customs (E.P.), C. F. S. Mulund , Dy. Commissioner of Customs, Licence Section, Air cargo complex, Saher, Mumbai and Dy. Commissioner of Customs (DEPB) JNPT.

11 The above information must be strictly followed by all the concerned officers with immediate effect.

Sd/- 23.08.2002
(RAMESH RAMCHANDRAN)
COMMISSIONER OF CUSTOMS (E.P.)
M U M B A I.

Issued from F.No.S/16-DEPB-MISC-661/2002 GR. VII.

ATTESTED BY

(B. C. RAJAK)
DY. COMMISSIONER OF CSUTOMS(EP)

ANNEXTURE – A

LIST OF DOCUMENTS TO BE SUBMITTED AND REPLACED SERIALLY IN THE SUBMISIONS FILED BY THE EXPORTER.

1. Acknowledgement for submission of DEPB Scrip for verification. (in triplicate )

2. Index for documents submitted.

3. Authorisation letter of the exporter. If CHA other than the one is engaged at the time of export shipment, the acceptance of the CHA for undertaking verification ( this is to be signed by proprieter / partner of the CHA firm).

4. Application of the exporter with the request for verifying the DEPB scrip.

5. Statement as prescribed in Annexure-G giving the details for each DEPB licence for the shipping bill no./date, description of the goods, Net Weight, Gross Weight, DEPB Serial number, SION No., DEPB Cap if applicable, Exchange rate as in the shipping bill and Realization Rare (RR), FOB value as shown in the shipping bill, Bank Realization Certificate, DEPB rate and entitlement amount.

6. Triplicate copy of the relevant shipping bills with enclosures/ declarations.

7. Original and one photocopy of DEPB scrip with enclosures.

8. Copy of AR4 form in original

9. Mate Receipt/ Bill of Lading showing “Shipped on Board”.

10. Bank Realization Certificate.

11. Any other documents considered relevant by the exporter.

ANNEXURE – B

SUBMISSION SHEET FOR DEPB VERIFICATION SCRIP

1.	Serial No. & Date
2.	Name of the party and IEC
3.	Licence number and port of Registration
4.	Issuing office – DGFT
5.	DEPB No. and date
6.	DEPB face value
7.	Shipping bill nos. and date ( if more space is required please attach separate sheet )
8.	EGM No and date
9.	Name and signature of the authorised person CHA / Exporter
10.	Sign of Receiving Clerk
11.	Examining Officer
12.	Appraising Officer
13.	Asstt. Commissioner
14.	EGM Verification / Entry Clerk
15.	Registration Number and Clerk
16.	Sign of Receiving Clerk

ANNEXURE – C

( to be presented in triplicate)

DEPB SECTION (GR.VII),
New Custom House,
Mumbai.

DATE :

Received DEPB No. …………………………………. Dated ………………. For Verification which has been entered in the prescribed register at Sr. No. ………../………. (year). Verified DEPB may be collected between 3 pm to 5 pm on or after ……………... by the person who has submitted the same.

( Counter clerk )
Group – VII (DEPB)
New Custom House, Mumbai.

NAME & SIGNATURES OF
THE PERSON SUBMITTING
THE DOCUMENTS

DATE :

.......................................................................................................................

NAME & SIGNATURE OF THE						( Counter clerk )
PERSON RECEIVING THE						Group – VII (DEPB)
ORIGINAL DEPB.						      New Custom House, Mumbai

DATE :

ANNEXURE – D
(for use by exporter not engaging
CHAs submitting for records of
DEPB Section).

CERTIFICATE

1.      Name

2.      Age

3.      Full Postal address 	(Office)

			(Resd.)
4.      Designation

5.      Signature

This is to certify that the person as mentioned above is our employee holding designation as mentioned 
above and is the pay roll of the firm/ company.  He has been authorised by us under Section 147 of the 
Customs Act, 1962 to act as our true representative for our purpose of DEPB scrip issued to us.  We 
understand that anything done by this person shall be deemed to have been done with the knowledge and 
consent of ourselves, so that any proceedings under this Act, we shall be liable as if the thing has been 
done by us.  The details as given are true and correct.

										( Signature )

Attested by bank

This is to certify that signature of		Name			:
Shri ……………………………..			Designation		:
Is as per our record			Name of the Company / firm	:
					Full address with		:
					Tel. No & Fax No.
					E-Mail

Note :	The photograph shall be signed by the same person who has signed this certificate on behalf 
		of the company.

ANNEXURE – E

REGISTER CONTAINING DETAILS OF AUTHORISED PERSONS

Sr. No.	Date	Name of person and address with phone number	Name of employer and address with phone number

ANNEXURE – F

( To be issued on the official letter head of DEPB Scrip holder’s company/ firm )

This is to certify that we have authorised Mr/Mrs …………………………………

Who is registered with DEPB section, NCH, Mumbai, as our representative vide registration no ……………………………… to submit and receive followoing DEPB Scrips for verification.

1.

2.

3.

Date :					Signature		:
					Name		:
					Designation	:
					Residential	:
					address of 
					the person

ANNEXURE – G
STATEMENT SHEET FOR DEPB VERIFICATION
( To be submitted in duplicate )

Verification File No.				DEPB Licence No.
Registration No.					Date :
DEPB issued from					File No.

Sr.No.

S/Bill No. & Date

Export Items

FOB as per S/Bill

Net FOB in Foreign Exchange as per BRC

Exchange Rate as on Date of Shipment / LEO

Net FOB in Rs As on Date of Shipment / LEO

Cap Rate

Net FOB in Rs as per Cap rate

Product Group

DEPB Sr. No.

DEPB Rate

DEPB Amt. ( whichever is less )

TOTAL

OFFICE OF THE COMMISSIONER OF CUSTOMS (GENERAL)
NEW CUSTOM HOUSE, BALLARD ESTATE,
MUMBAI – 400 001.

P.NO.:- 118/2002								Date : 24/09/02
Imp 60/2002
Exp 60/2002

PUBLIC NOTICE

Sub : Duty Drawback on ‘Natural dyed made-ups with latex backing – reg

1. The Handloom Export Promotion Council has represented that the field formations do not consider natural dyed made-ups with latex backing as dyed made-ups and, therefore, difficulties are being encountered in availing of the duty drawback of the same.

2. The SS. No. 63.081 relating to ‘All other dyed made-ups including bath mats, tassels, throws, etc. with rubber/ latex backing was introduced in the All Industry Rate of Duty Drawback Table, 2001-2002, through notification No. 50/2001-Cus.(N.T.), dated 4.10.2001 on the basis of the recommendations of Study Team which was constituted for this purpose. The same entry has been re-numbered as 63.09 in the Drawback Table, 2002-2003.

3. It is clarified here that the term ‘Dyed made-ups’ shall also include ‘Natural dyed made-ups’ and natural dyed made-ups should not be confused with ‘Grey made-ups’. If the products exported are other than ‘Grey’, it is obvious that the same have undergone processing with dyes and chemicals though they may acquire natural colours. These goods, thus would have suffered input stage duties on account of dyes and chemicals. Therefore, if during examination of the goods it is found that they are not ‘Grey, duty drawback should not be denied to the same.

4. Contents of this notice may be brought to the notice of all concerned and trade constituents in particualr.

( C. SEN )
COMMISSIONER OF CUSTOMS (G)
NEW CUSTOM HOUSE
MUMBAI.

Issued from F.No. S/10-72-DBK/2002 CFS (M)

( Issued on the basis of Drawback Circular No. 44/ 2002-Cus dated 22.7.2002 of Govt. of India, Ministry of Finance, Department of Revenue in F.No.609/80/2001-DBK dated 22nd July 2002)

OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT PROMOTION)
NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI-400 001.

F.No. S/16-DEPB-MISC-875/2002						DATED :19/9/2002
Imp. 59/02
Exp. 59/02

PUBLIC NOTICE NO. 115/02

Sub :- Market Verification for ascertaining the present market value Under DEPB Scheme & admissibility of DEPB Credit Reg.

A copy of Ministry of Finance, Department of Revenue, New Delhi letter F.No.605/38/2002-Dbk. (Circular No. 56/02-Cus.) dated 9.9.2002 regarding Market verification for ascertaining the PMV under DEPB Scheme and admissibility of DEPB credit is annexed for the information of the Trade and Industry in general and of exporters in particular.

( RAMESH RAMACHANDRA )
COMMISSIONER OF CUSTOMS (EP)

this principle will be applied to all export products whether their rates are less than 10% or are 10% or above 10%.

5 As per the existing instructions the verification of the present marker value through marker enquiries should be especially assigned to the Special Intelligence & Investigation Branch of the Customs House and not to the Assessing Officer and the enquiry must be completed and the final view taken in 30 days except where the Commissioner of Customs has specified that it is necessary to extend the period beyond 30 days to collect further information/evidence, the enquiry period may be extended upto 90 days from the date of the S/Bill. The Show Cause Notice should be issued within the extended period of 90 days. However, if the Commissioner of Customs is satisfied that the enquiry for determining the present market value of the goods has to be extended for reasons involving fraud/collusion/wilful mis-statement of suppression of facts, he may extend the period of 3 months till such further period as is deemed necessary after recording the reasons thereof in writing.

6 It has been brought to the notice of the Board that in many cases the intelligence regarding over-valuation of the exports is received much after the exports. Therefore, the existing instructions pose a legal hurdle in investigation of DEPB frauds where the DEPB credit has already been availed and in many cases even utilised.

7 This issue has been examined in the Board. It is clarified that in respect of the cases involving fraud/collusion/wilful misstatement or suppression of facts, etc. the enquiry can be opened at any stage within a period of 5 years and notice may be issued for recovery of import duty involved.

8 Suitable public notice for information of the trade and standing orders for guidance of the staff may kindly be issued accordingly.

9 The receipt of this Circular may kindly be acknowledged.

Yours faithfully,

Sd/-
(S.S. RENJHEN)
Jt. Secretary to the Govt. of India

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