Exporters interact with
Chief Commissioner of Customs, Delhi
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Dr. R K Dhawan, Chairman, FIEO(NR) (3rd from left) addressing the meeting. On his left, are the Chief Commissioner of Customs Mr. A C Buck; Commissioner of Customs (Exports), Mr. John Joseph; Commissioner (Customs & Central Excise) Mr. K K Jha. On Dr Dhawan’s right are Director General of FIEO Mr. Ajay Sahai; and the Commissioner of Customs(ICD) Tughlakabad Mr. C P Srivastava. |
Exporters from Delhi and adjoining areas interact with Delhi’s Chief Commissioner of Customs Mr. A. C. Buck and raise a host of issues ranging from difficulties in uploading Data on ICEGATE system to delay in receiving Export Promotion Copy of shipping bill
Delhi’s Chief Commissioner of Customs says that the risk management system in exports may become operational in next six months. At an Interactive Session organized by FIEO on July 10 at New Delhi, Mr. A C Buck also informed that that the drawback payments for the Delhi Zone had increased from Rs. 779 crore in 2005-06 to Rs. 1061 crore in 2006-07.
Earlier, addressing a large number of exporters, shippers and freight forwarders, the Northern Region Chairman of FIEO, Dr. R K Dhawan highlighted major issues faced by exporters while dealing with customs such as lack of uniformity of practices within various field formations, slow upgradation of infrastructure to meet increasing requirements of shippers, arbitrary reduction of drawback rates by customs authorities etc.
FIEO Director General Mr. Ajay Sahai raised the issue of pending drawback claims and assured to provide Federation’s assistance to custom authorities if they wanted regular updates on pending claims of exporters.
During the interaction with the participants that followed, Mr. Buck was accompanied by Mr. John Joseph, Commissioner of Customs (Exports), New Delhi, Mr. C P Srivastava, Commissioner of Customs, ICD Tughlakabad, Mr. K K Jha, Commissioner (Customs & Central Excise), Faridabad and Mr. Neeraj Prasad, Jt. Commissioner of Customs ICD, Tughlakabad.
Major issues raised by participants during interaction
Certificate for non-availment of Cenvat for non-excisable goods
Participant: As hand knotted/handmade silk and woollen carpets and other handmade floor coverings are unconditionally exempted from central excise, the question of availing Cenvat facility on such goods does not arise. However, customs authorities are said to be insisting for certificate regarding non-availment of Cenvat benefit in respect of export of such goods also. This unnecessary delays export shipments and also hold drawback payments.
Chief Commissioner: Suitable instructions will be issued to the field formations not to insist for irrelevant certification.
Factory stuffing of export goods
Participant: Exporters are not getting permission for factory stuffing (at suppliers’ premises) of non-excisable agro and food products from customs authorities at ICD, New Delhi. Such permissions are granted at other ICDs like Nagpur on simple request. Containers are inspected by the Central Excise Inspector at supplier’s place and sealed in ICD Nagpur.
Chief Commissioner: Customs will be accepting containers if they have already been inspected and sealed by the central excise official and if the seal is intact. With regard to factory stuffing for non-excisable goods, the exporter may approach jurisdictional excise authority
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Returning imported raw material to foreign supplier
Participant: At times, exporters do not find the imported raw material as per their specifications. While returning such goods to foreign supplier, they face frivolous objections raised by customs. As per the Rulebook, drawback is admissible on re-export of duty-paid goods when the goods are capable of being easily identified. But due to the objections raised by customs, they are forced to re-export these goods under normal White Shipping Bill UNDER PROTEST. |
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| A view of the senior Customs Officials along with participants. |
Chief Commissioner: Sometimes it becomes very difficult to identify the goods at the time of re-export and that is the reason to clear such goods under White Shipping Bill. If the exporter is able to prove the identity of goods at the time of re-export, the drawback is paid.
Delay in uploading of Data on ICEGATE
Participant: Inordinate delay is observed in uploading data related to EDI DEPB shipping Bills on the ICEGATE by the concerned custom ports, without which exporter cannot apply for the same. And when the data is fed, there have been instances when the shipping bill appears on the online DEPB module, but when selected for submission, the related detail of the export product under the same doesn’t appear, leading to NIL DEPB entitlement against the said shipping bill.
Moreover, for the last few months, all shipping bills are fed online by Customs to Jt. DGFT. Similarly, all licenses issued by Jt. DGFT are fed online to custom authorities. But, a large number of shipping bills do not reach the Jt.DGFT and similarly a large number of licences fed online by Jt.DGFT do not reach Custom’s online system. Exporters have to go here and there for re-feeding the shipping bills and licences and a number of attempts have to be made for that.
Chief Commissioner: EDI was introduced in 1995 and since then there is phenomenal growth in exports and the system requires updating to meet such growth. Massive exercise is undergoing to tackle this and the Commerce Secretary is himself observing the whole process.
Clearance of goods on self-declaration basis
Participant: In terms of Para 3.5.2.1(i) of Foreign Trade Policy, status holders are eligible for customs clearance for both imports and exports on self-declaration basis. Very often customhouses are denying this facility to exporters on the plea that they have received no such guidelines from the CBEC.
Chief Commissioner: Risk Management System in import is already in operation and importers are availing the facility. As regard to exports, Risk Management System is underway to become operational soon.
Reduced amount of drawback
Participant: Very often exporters get lesser amount of drawback than what they claim as per the specified All Industry Rates. Consequently, exporters apply for supplementary claims. Customs authorities make enormous delay in settling the supplementary claims for the reason best known to them.
Chief Commissioner: Addl. Commissioner will be made available to look into the exporters’ grievance and resolve the same.
Interest against delay in release of drawback amount
Participant: Duty Drawback Rules provide payment of interest where any drawback, payable to a claimant under Section 75, is not paid within a period of one month from the date of filing a claim. However, normally three to six months are taken for disbursement of the claim but no interest is paid for the delayed period. In case of drawback against Brand Rates, reimbursement takes sometimes even more than a year. There is a need to fix accountability for the delay.
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If the exporter claims interest on the delayed period, then even the principal drawback is held up for objections like non-availment of Cenvat certificate or production of BRC - which are not mandatory in case of exempted goods and in case of goods exported under DA (deferred payment) as per RBI Regulations.
Chief Commissioner: Exporters are requested to bring such cases to me where queries were complied with but drawback payment was being delayed beyond the prescribed period. I will provide the list of cases pending due to one query or the other in CD to FIEO on every 15th day so that exporters may be informed of the same. |
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| Mr. Subhash Mittal, Convenor, FIEO’s Committee on IT & EP (extreme right) along with the participants. |
Only one bank for claiming duty drawback
Participant: Exporters have to open many accounts with the designated banks for the credit of duty drawback at each customs house. They have to maintain a minimum balance of Rs. 10,000 in each account which blocks their working capital and increases their transaction costs. In today’s scenario, where various banks are electronically interlinked, exporters should be asked to open only one account for drawback.
Chief Commissioner: Possibility is being explored in this regard and Delhi Customs is already in talk with the Punjab National Bank. However, I would advise FIEO to take up the matter with DG, Systems of CBEC.
Clearance of raw material for manufacturing medical disposables
Participant: As per CBEC Notification (No. F.No.450/08/2007-Cus-IV, dated 22.01.07), CDSCO is responsible for monitoring the quality of medicines manufactured, distributed, sold and imported into the country according to the provisions of the Drugs and Cosmetics (D&C) Act and Rules made thereunder. It is clear that this notification is applicable for medicines and not for the medical disposables. However, customs authorities ask for NOC from the Drug Controller for items like PVC compound for tubing and also components and other plastic parts imported in bulk from different parts of the world for manufacture of medical disposables. Suitable clarification may be issued.
Chief Commissioner: Commissioner of Customs, ICD, Tughlakabad should look into this issue and try to resolve it.
Registration of Advance/EPCG Import Licence
Participant: Whenever we import any material under Advance Licence, Customs Department does not register the Licences. Similarly, EPCG licences are also not being registered and Customs always send the licenses for verification. Customs authorities may verify the licence online and do away with physical verification.
Chief Commissioner: Since the details of these licences are available on the Website and the licences are now transmitted online, physical verification may be done away with.
Delay in receipt of Export Promotion Copy of Shipping Bill
Participant: On a number of occasions, EP Copy of Shipping Bill is released by customs authorities after a long time from the date of sailing of vessel. EP copy is one of the vital documents required to be submitted for claiming DEPB/Drawback/Redemption of Licences. etc. Instructions may be issued to the customhouses to release EP copy of Shipping Bill within 15 days from the date of exports.
Chief Commissioner: The delay occurs due to non-filing of EGM or wrong filing of details such as container no., net weight etc. in the EGM by Shipping Companies. All the same, I will see if the process can be expedited.
Release of Bank Guarantee
Participant: Bank Guarantee against Advance Licences/EPCG should be released by Customs automatically as the documents are filed by the exporters. Manysuch cases are pending for the last 2-3 years for redemption of bonds/bank guarantee/LUT with Air Cargo Exports at New Delhi Customs. Efficient Monitoring Mechanism may be set up to expedite the release of pending bank guarantee/bond.
Chief Commissioner: You may see the concerned Commissioner of Customs to resolve the issue.
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FEDERATION OF INDIAN EXPORT ORGANISATIONS
invites Women Entrepreneurs to participate in
WOMEN ENTREPRENEUR TRADE EXPO 2007
SEPTEMBER 29-OCTOBER 05, 2007 AT DHAKA, BANGLADESH
EXHIBIT PROFILE: Fabrics stitched/ unstitched, Embroidered/ unembroidered ladies/ gents and children’s clothes, Shoes/ Chappals/ Khusas, Bangles, Mehandi, Bags, Runners, Scarves, Cushions, Herbal cosmetics, Home décor and Bed linen products, Carpets (small), Aluminium utensils, Handicrafts etc.
MAIN FEATURES:
FOR PARTICIPATION PLEASE CONTACT: MRD DIVISION, Federation of Indian Export Organisations Niryat Bhawan, Rao Tula Ram Marg, Opp. Army Hospital Research & Referral, New Delhi- 110 057 |
