Timely cancellation of Bond executed with Customs in Advance Authorisation Cases - CBEC Clarifies
EXPORT Promotion Councils have highlighted that field formations take substantial time to cancel the bond executed by exporters with the Customs in terms of the advance authorisation notifications. EPCs informed that much of this time is associated with retrieval of bond file and re-verifying documentation submitted by exporter for obtaining the export obligation discharge certificate (EODC) from the Regional Authority of DGFT.
The matter was examined by CBEC.
Board has directed Commissioners to make it a general practice that the bond file is retrieved from record prior to expiry of export obligation period and the confirmations referred, if any, are linked therein in advance. The work should be arranged in a manner that bond files are readily available for immediate processing. Where request for cancellation of bond is presented before the expiry of the normal EO period, the bond file should be retrieved and readied for processing within 1 day.
The Commissioners are also directed that the selection parameters should be meaningful and practically applicable up front without recourse to prior enquiry with exporter or long drawn analysis after EODC is received. To illustrate, the EDI system can be used to work out, in advance, a list of authorisations from a risk perspective say by judging, from the linked import bills of entry and shipping bills, parameters such as import of materials otherwise attracting high rates of duties or combination of specific and ad valorem duty rates or exports to sensitive destinations or by third parties or new IECs at the locations etc. Similarly, the accompanying details with advance authorisation EODCs can identify authorisations associated with non-EDI parameters such as deemed exports or manual ports etc. From amongst EODCs received for such (or otherwise) identified list of authorisations, the selection for check should be made at least at Joint/Additional Commissioner level and the relevant exporter should, invariably, be informed, on the date of selection itself, via official email communication that its case is selected for detailed checks.
The Board further directs the Commissioners to bring credibility and transparency into the bond cancellation process for advance authorisations. To institutionalise a service orientation, a verifiable record must be kept of the date the exporter applied with documents (like EODC and original authorisation with condition sheet) for cancellation of bond and, every 3rd day or earlier if required by quantum of EODC inflow, selection for checks should be made (and intimated) from amongst the relevant applications. Exporters should be requested to share their email addresses on the application.
Board wants the Chief Commissioners to monitor the functioning on a monthly basis and ensure strict implementation.
Perhaps, a Record keeper would have been the right person for the job. Does the Board have one? By the way, when even Service Books of government employees are difficult to trace, retrieval of a bond file is a foregone conclusion!
CBEC Instruction in F. No. 605/71/2015-DBK., Dated December 02, 2015