Conversion of free shipping bills to export promotion scheme shipping bills and conversion of shipping bills from one scheme to another – CBEC clarifies
AS per Board's Circular No. dated 16.01.2004, conversion of shipping bills from one export promotion scheme to another only where the benefit of an export promotion scheme claimed by the exporter has been denied by the DGFT/MoC&I or Customs due to any dispute.
Board has noticed that the Tribunal in a series of judgments have held that amendment to shipping bill after export of goods is governed by the proviso to section 149 of the Customs Act, 1962 and if the requirements of the said proviso are satisfied, conversion of shipping bill should be allowed. The conversion of the shipping bill from one scheme to another cannot be linked with denial of benefit of one scheme by DGFT/MoC&I or Customs due to some dispute as no such condition for amendment of shipping bill has been provided in section 149 of Customs Act, 1962.
After considering representations, board has been very kind and decided that:-
++ Commissioner of Customs may allow conversion of shipping bills from schemes involving more rigorous examination to schemes involving less rigorous examination (for example, from Advance Authorization/DFIA scheme to Drawback/DEPB scheme) or within the schemes involving same level of examination (for example from Drawback scheme to DEPB scheme or vice versa) irrespective of whether the benefit of an export promotion scheme claimed by the exporter was denied to him by DGFT/ DOC or Customs due to any dispute or not.
++ The conversion may be permitted in accordance with the provisions of section 149 of the Customs Act, 1962 on a case to case basis on merits provided the Commissioner of Customs is satisfied, on the basis of documentary evidence which was in existence at the time the goods were exported, that the goods were eligible for the export promotion scheme to which conversion has been requested.
++ Conversion of shipping bills shall also be subject to conditions as may be specified by the DGFT/MOC.
Of course the Board wants the field to take due care while allowing conversion to ensure that the exporter does not take benefit of both the schemes i.e. the scheme to which conversion is sought and the scheme from which conversion is sought. Whenever conversion of a shipping bill is allowed, the same should be informed to DGFT so that they may also ensure that the exporter does not take benefit of both the schemes.
Circular No. dated 16.01.2004 is superseded.
Board has, for a change, shown respect for Tribunal orders and trade requests. This is how the Revenue Board should function. Even now the conditions are cumbersome – Board should consider making the procedure more simple.
CBEC CIRCULAR NO. 36/2010-Cus, Dated : September 23, 2010