Grant of DEPB against free Shipping Bills converted by Customs Authorities
CONVERSION of free shipping bills to DEPB Shipping Bills was allowed by the Department of Revenue vide Customs Circular No.6/2003-Cus. dated 28.1.2003 whereby Commissioners of Customs were given powers to allow such conversions. In accordance with the instructions, conversions were done by Customs. Subsequently, vide Circular No.4/2004-Cus. dated 16.1.2004 the facility to allow the conversion of free shipping bills to export promotion schemes was withdrawn.
In this background, instructions were issued to the Regional Authorities (DGFT) not to grant DEPB benefits against such shipping bills which were converted by the Customs authorities. Some of the exporters approached High Courts claiming that DEPB should be given in cases where the conversions have been allowed by Customs.
Now, DGFT clarifies that between 28.1.2003 and 15.1.2004, in case if the Commissioner of Customs has already allowed the conversion of free Shipping Bill to DEPB Shipping Bill, the DEPB claims can be admitted. Accordingly, RAs are instructed to decide the admissibility of DEPB claims. Old cases, which were rejected, can also be reviewed.
It may be noted that now with effect from 23 September 2010, such conversion is allowed as per Customs Circular No. dated 23.09.2010.
DGFT Policy Circular No. 44 (RE-2010)/2009-14, Dated: November 01, 2011