Redemption

4.70

In case the export obligation has been fulfilled, the Regional Authority shall redeem the case.

After redemption, the Regional Authority shall forward a copy of the redemption letter indicating the shipping bill number(s), date(s), FOB value in Indian rupees as per shipping bill(s) and description of export product to the Customs Authority at the port of registration. Such details shall also be placed by the Zonal Offices in their website immediately after issuance of the export obligation discharge/ redemption letter / ‘No Bond Certificate’ and by DGFT HQr in DGFT website on monthly basis for the Customs Authority to access it from the website.

Before discharging BG/LUT against Physical Exports, the Customs shall verify that the details of the exports as given in the “Redemption Certificate”, are as per their records. However before discharging BG/LUT against Intermediate Supplies and Deemed Exports, the Customs shall verify the details of the supplies from the Central Excise authorities/Bond Officer.

Ordinarily, redemption of BG/LUT shall not preclude the customs authority from taking action against the Authorisation holder for any misrepresentation, mis-declaration and default detected subsequently.

Further the Regional Authority shall also take action against the certificate holder in case of non-submission of Appendix 23, duly filled in, as stipulated in Paragraph 4.30 of Handbook, Vol.I or for any misrepresentation, misdeclaration and default detected subsequently in the details declared and furnished in Appendix 23. An endorsement to this effect shall be made by the Regional Authority in the redemption certificate.

The cancellation/ redumption of BG/LUT would be undertaken by the Customs within 30 days of issue of EODC /bond waiver by the Regional Authority.