Central Server of Customs will be operational by December: DGFT

Mr. R S Gujral, DGFT (centre) addressing the meet at Ahmedabad. Others from left, Mr. Ajay Sahai, Director General, FIEO; Mr. S K Saraf, Chairman, FIEO(WR); Dr. (Mrs.) Maya D Kem, Development Commissioner, Mundra SEZ and Mr. Amarnath Mishra, Jt. DGFT, Ahmedabad.

Shortly EPCG licensing will be online like DEPB and Central Server of Customs will be operational by December. The Director General of Foreign Trade, Mr. R. S. Gujral made this announcement in an open house organized by FIEO on 11 July with exporters at Ahmedabad. Mr. Gujral hoped that centralized customs server would reduce transaction cost and obviate the need of TRA.

Commenting on the continuance of EOUs after withdrawal of tax benefits, the DGFT was hopeful that most units would continue to operate but he did not rule out the possibility of closure of some of the EOUs.

Continuing his address, Mr. Gujral urged FIEO to go through the procedure of getting service tax refund and suggest measures to make it simpler and exporter friendly. 

Earlier, while welcoming the participants, FIEO’s Western Region Chairman Mr. S. K. Saraf called for dignified exit for units operating under EOU scheme. He said the current exit procedure is quite painful, as it requires submission of certificates from various government departments. Mr. Saraf further suggested setting up Development Commissioner’s office for EOUs, as for the SEZs, under the purview of DGFT. This will ensure better coordination of EOUs with the DGFT office, he said. Mr. Saraf also sought greater flexibility in the EPCG scheme.

Dr. (Mrs.) Maya D. Kem, Development Commissioner, Mundra SEZ, Mr Sanjay Rastogi, Export Commissioner, Mr. Tapan Mazumder, Jt. Director General Foreign Trade, Policy Division, Mr. Seetharam Reddy, Jt. Director General Foreign Trade, Mr. A. K. Singh, Jt. Director General Foreign Trade, Mr. O. P. Hisariya, Jt. Director General Foreign Trade, Mr. Amarnath Mishra, Jt. Director General Foreign Trade, were present in the open house which was attended by nearly 100 exporters from Ahmedabad, Baroda and Rajkot. The open house was coordinated by Mr. Ajay Sahai, Director General, FIEO.

The following major issues were discussed in the open house.

  • Verification of Focus Market Scheme scrips: Trade Notice detailing the list of documents to be verified have been issued. DGFT will take up with Member (Customs) CBEC and also speak to JNPT Customs.

  • Removal from DEL list: Mumbai, Bangalore and Ahmedabad JDGFTs have already been giving abeyance liberally to enable exporters to comply. The name of exporter is not put on DEL list automatically but only after sending BRC submission query memo. If there is any software problem, the same will be looked into. Even in case of unutilized Licenses, a notice is issued and only when there is no response from exporter, the matter is adjudicated and put on DEL list. If the License is not utilized, JDGFT should be informed promptly so that the exporters name is not put on DEL list.

  • Finalization of ad-hoc norms even after 2 years: exporter was requested to send the details to DGFT for examination.

  • Export in anticipation of EO extension of EPCG license: 8 years is already a long period and so it is not possible to keep file open for another 1 or 2 years, file cannot be kept open-ended.

  • Refund of excess duty paid under EPCG (reduction from 5% to 3%) - While some exporters have obtained fresh EPCG license under 3% by surrendering the 5% License, others who did not knew continued with it and paid higher duty. It is not possible to push Customs to issue the notification with retrospective effect.

  • Amendment in Customs not.No.64/08 – deletion of proviso 5 of explanation 2(i) – The issue is not yet resolved. It will take a month to resolve.

  • Non-functioning of DGFT server: Server can break-down specially with addition of two more schemes and more exporters using the server, the load is expected to go up. Exporters should take up more vigorously and contact DGFT headquarters. There is need for enhancing the capacity of the server.

  • Ban on export of Senna Leaves & Pods: withdrawn by issue of notification No.22 dated 7th July 2008.

  • Third country exports: it is a merchanting provision. Only FEMA applies. Banks have power to grant permission. There is no need for RBI permission, but the transaction has to be completed within six months.

  • Refund of Service Tax: If DBK is taken than no service tax refund is eligible as input service is already taken into account while fixing DBK rates. For output service, the matter will have to be followed-up.

  • Refund of Service tax on Foreign Agency Commission: Matter is being followed up to remove cap on refund.

  • Rebate of Central Excise paid under DFIA scheme: It is pending with Revenue Department, which is looking into totality.

  • Shortage of blank GSP forms: DGFT will take up with EIC.

  • DFIA for different qualities: should be applied separately and not collectively otherwise it will be treated as one single shipping bill.

  • Generic entry under SION - made-ups: matter will be put up in Norms Committee to regularize. Exporter may apply.

  • VKGUY – Kandla Customs requiring undertaking: DGFT will write to Kandla Customs.

  • Basmati Rice – exports only some ports are allowed. Supplies to SEZ units not allowed. Where food product of non-basmati rice is prepared which is the base material for some units – issue will be examined. It will have to be put up before the empowered GoMs.

  • VKGUY - problem in Ahmedabad and Kandla Customs who consider only Chapters 1 to 24 for VKGUY. Circular on similar lines of VKGUY circular dated 28.4.08 should also be issued for FPS / FMS.

  • Maize – starch – Customs seeking clarification: Write to DGFT for clarification.

  • FPS / FMS – B/L or Tracking Report is required or any of the other 7 documents listed. Shipping Co. certificate will also do. Where documents are not available in respect of particular S/B, exporter may opt for reduced claim by excluding the said S/B.

One of the exporter raising a point to the DGFT.

Subvention Scheme closes on 30th September

As part of the package announced by the Government in July, 2007, the Reserve Bank of India provided further subvention in the interest rate on export credit (in addition to export credit rate of 2.5% below the BPLR) by 2% to all exporters from SME sectors and nine products groups covering all categories of exporters. In November 2007, additional subvention of 2% (in addition to 2% already offered in July 2007 which was over and above the normal rate of export credit rate of 2.5% below the BPLR) was given to leather, marine, textiles (including RMG and carpets but excluding manmade fiber and handicrafts) sectors. The above subvention scheme was further extended by the Reserve Bank of India on 25th of April 2008 for a further period of one year from 1st April 2008 to 31st March 2009.

RBI, vide its Circular dated 1st August 2008, has decided to bring the subvention on export credit scheme to a close with effect from 30th September 2008. Henceforth, from 1st October 2008, exporters will only be eligible for normal export credit rates available at 2.5% below the BPLR, subject to prescribed conditions.

 

Federation of Indian Export Organisations
New Delhi, INDIA.