Imports Under DFIA – No Bond if EO is Fulfilled
New Conditions are added to Notification No. 40/2006 – Cus to stipulate that
1. In respect of imports made after the discharge of export obligation in full, if facility under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or CENVAT Credit under CENVAT Credit Rules, 2004 has been availed, then the importer shall, at the time of clearance of the imported materials furnish a bond. If these facilities are not availed, no bond is required.
2. If the imported materials are transferred, duty has to be paid with interest.
Unfortunately, DDT admits these amendments are too complicated to be explained in a few lines in these columns. However you may refer to one of our recent articles Export promotion schemes vs. Cenvat Credit or Rebate under Rule 18: The myth and the reality
We will try to detail these changes in an article soon.
Notification NO. - Dated: February 19, 2009