Drawback - BRC Monitoring - Board Reiterates Circular
THE Public Accounts Committee (PAC) has on more than one occasion expressed concerns about the lack of action being taken in the case of non-realization of foreign exchange in respect of consignments exported under the Drawback Scheme.
CBEC had in Circular No. 5/2009-Cus dated 02.02.2009 required that the export realizations in respect of all drawback shipments made during 01.01.2004 to 31.12.2007 should be checked and for exports during the subsequent period such verification/checking should be done for drawback shipments every six months.
Board now desires that this should be implemented by all Custom Houses earnestly. Complete and effective implementation would mean that there should not remain any cases in the Custom Houses where the realization has become due but the exporter has not submitted BRC /negative statement and the SCN for such non submission has not been issued within a reasonable time. Thus, the work of feeding the details of BRCs/negative statements into the system and of issuing Show Cause Notices (SCNs) to exporters wherever they are not submitted and taking further action including adjudication of the cases for recovery of drawback has to be accomplished in a methodical and time bound manner.
Some Custom Houses have reported to the Board that in many cases, the show cause notices, which have been issued for non-submission of BRCs/negative statements, were returned undelivered as the recipient/address was non-existent. In such instances, Board desires that the Commissionerates should set up an institutional mechanism to liaise regularly with Regional Licensing Authorities (RLAs). The names of such exporters should be reported to the RLAs at regular intervals or during joint review meetings so that action can be taken against them and their IE Codes got cancelled for furnishing wrong addresses to DGFT / Customs. The Board may also be kept informed so that the matter can also be taken up with the DGFT.
We know an importer who got a Show Cause Notice in spite of submitting the Bank Realization Certificates. Obviously a hyperactive Commissionerate or there is no system to correlate the documents.
CBEC Instruction in F.No. 609/119/2010-DBK., Dated: January 18, 2011