Facility for suomoto payment of customs duty in case of bona fide default in export obligation
GOVERNMENT has considered the issue of increased interest cost for authorization holders (AH)who come forward to the Regional Authority (RA) of DGFT for regularization of their cases of bona fide default in export obligation (EO) under the Advance Authorization or EPCG Schemes but have to wait for the detailed calculations in this regard before being able to deposit the duty involved. It was decided to provide for a procedure that would enable quicker payment thereby reducing the avoidable interest cost for such exporters.
During pendency of the detailed calculations by the RA, such an AH may deposit, in cash, the own/self-calculated duty amount, along with interest in cash by challan (showing relevant particulars) in the designated bank at the port where the authorization is registered. One copy of the paid challan shall be submitted to the Customs Authority at the said port which shall update its records.
CBEC Circular No. 11/2015, Dated: April 01, 2015