Customs - Option to close cases of default in Export Obligation
BY Public Notice No. 22/2013, dated 12.08.2013, the DGFT has provided an option for redemption/ regularisation of old cases of default in Export Obligation under (a) Duty Exemption Scheme (b) EPCG Scheme.
All pending cases of the default in meeting Export Obligation (EO) can be regularised by the authorisation holder on payment of applicable customs duty, corresponding to the shortfall in export obligation, along with interest on such customs duty; but the interest component to be so paid shall not exceed the amount of customs duty payable for this default.
While reporting this in - 13.08.2013, we had questioned, Will the Customs Department agree? Will they issue a notification/circular?
Now, the Government has amended 36 Customs Notifications to insert the words, "In a case of default in export obligation, when the duty on goods is paid to regularise the default, the amount of interest paid by the importer shall not exceed the amount of duty if such regularisation has been dealt in terms of Public Notice of the Government of India in the Ministry of Commerce No. 22 (RE-2013)/2009-2014 dated the 12th August, 2013."
Notification No., Dated: September 26, 2013