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F.No.605/140/98-DBK
Circular No.
14/99-Cus
dated 15/3/99
Government of India
Ministry of Finance
Department of Revenue, New
Delhi
Instances
have come to notice of the Department where DEPB scrips were obtained by
unscrupulous exporters by presenting S/Bs with forged examination reports
and 'let export' orders alongwith forged BRCs, etc. In some of such cases
even the verification endorsements by Customs authorities on DEPB scrips
have been apparently forged. It has, therefore, become necessary to revise
and tighten the procedure for verification of DEPB scrips.
2. In view of this, a tighter
procedure for verification of DEPB scrips has been adopted at Mumbai Custom
House. A copy of the standing order issued by Commissioner of Customs,
Mumbai is enclosed.
3. The issue has been examined
in the Board and it has been decided that all the Custom Houses should
adopt the same procedure as adopted by Mumbai Custom House for verification
of DEPB scrips registered with them. However, the back-up data which is
being maintained by Mumbai Custom House on Sperry Computer, may be maintained
at other Custom Houses on the Sperry System/EDI System/Manual Registers,
and the details in the DEPB scrip must be verified with reference to such
data in the Custom House Computer/Registers, and the details in the DEPB
scrip must be verified with reference to such data in the Custom House
Computer / Registers in line with the procedure enclosed.
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Some instances have come to
notice of the department where DEPB Scrips were obtained by unscrupulous
exporters by presenting S/Bs with forged examination reports and let export
orders alongwith forged BRCs etc, from the local offices of DGFT. In some
of such cases even the verification endorsements by Custom authorities
on DEPB Scrips have been apparently forged. It has become necessary to
revise and tighten the procedure for verification of DEPB Scrips. The following
procedure shall henceforth be followed in modification and suppression
of the procedure followed hitherto.
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2. DEPB Scrips with prescribed
documents (DEPB copies of S/Bill in original, photocopies of EP copies
of S/Bills, Bills of lading evidencing shipment of goods and customs attested
invoices)shall be accepted for verification by the designated counter clerk
in Gorup VII only from 10.00 am. To 3 p.m. on each working day. The receipt
clerk shall while receiving DEPB Scrips keep a record in the register in
the proforma prescribed vide Annexure 'A'. An acknowledgment in the
proforma at Annexure 'B' shall be given to the person submitting the DEPB
Scrips indicating therein the Sr. No. and Date of the entry in receipt
register. The signature of the person submitting the DEPB for verification
with his full Name, CIIA No. and Pass No. shall also be recorded in the
said register.
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3. All DEPB Scrips received
shall be distributed by the receipt clerk amongst alphabet clerks simultaneously
who shall enter DEPB particulars in the alphabet register against respective
S/Bills immediately on receipt. Thereafter, DEPB verification files shall
be given by alphabet clerks to the Examiners according to alphabet-wise
distribution already in force. This distribution should be completed before
5 o'clock on the same day. The Examiners shall personally verify the particulars
of S/Bs from the data available in computer and ensure that goods covered
by the S/B have already been shipped and so figure in the revelant EGM.
In other words, they must compare the name of the exporter, description
of the goods, number of packages, security number of the S/Bills, date
of sailing, etc., with the data available on computer. In case of any discrepancy,
particulars should be verified from the hard copy of the discrepancy, particulrs
should be verified from the hard copy of the EGM till the system of entering
EGM details in the computers is put in place. After verification
os shipment details, the E.O's will also check the correctness of credit
permitted in the DEPB and hand over the files to respective Appraisers
as per distribution on the same day with endorsements in respective files.
They shall also sign in full on reverse of DEPB at the prescribed place
in token of having completed verification. All DEPB copies of S/Bills shall
be defaced by drawing two red lines diagonally on the entire length of
S/Bills.
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4. The Appraisers shall
scrutinise the file to ensure that proper verification of fact of shipments
has been completed by the Examiner and then check the correctness of DEPB
rates having been applied for grant of credit. After verifying the correctness
of the DEPB Scrips in all respects, file shall be submitted by them to
the Asstt. Commissioner with full signature on the reverse of DEPB Scrip.
The Asstt. Commissioner shall also countersign the DEPB Scrip in full at
the prescribed place. Process of verification by Appraisers and counter-signature
by the Asstt. Commissioner should be completed on the same day i.e. on
the day after receipt of DEPB and the file shall be returned to the dealing
Examiner by the afternoon.
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5. On receipt of files
duly countersigned by Appraisers and Asstt. Commissioners on the DEPB Scrips,
the Examiners shall register all DEPB Scrips, which have been verified,
in the computer system and registration No. and date shall also be endorsed
on the reverse of DEPB Scrips Verified DEPB Scrip shall thereafter be embossed
by perforated stamp in the Cash Section under personal supervision of the
concerned Examiner. This process should be completed latest by 12
o'clock on the third day. Duly verified and embossed DEPB Scrips
shall thereafter be handed over to receipt clerk who shall detach the DEPB
Scrip from the files and return the files to Examiner for safe custody.
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6. Duly verified DEPB
Scrips detached by receipt clerk shall be distributed across the counter
to the persons whom the scrips were received in the afternoon between 3
p.m. to 5 p.m. Accordingly, scrips received on a particular day shall
be verified and distributed on the 3rd day i.e., scrips received on Monday
forenoon shall be distributed on Wednesday afternoon whereas scrips received
on Friday forenoon shall be distributed on Tuesday afternoon. This
scrips shall be delivered against surrender of acknowledgment issued to
the person who had submitted the DEPB Scrips for verification and his signature
intoken of having collected the DEPB Scrip shall be obtained in the same
register. DEPB Scrip should be delivered only to the person who
had submitted the same for its verification and not to any other person.
DEPB Scrip not collected on the due day shall be kept by the receipt
clerk in his safe custody under lock and key. The DEPB Scriips not
collected within 7 days of submission should be entered in a separate register
which should be put to A C (Admn) for his information and directions on
every Monday of the week.
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7. In terms of condition
(vii) of Notification No. 34/97-Cus dated 7/4/97 governing exemption from
duty under DEPB Scheme, where benefit of exemption from duty is claimed
by a person, who is not a DEPB holder, such benefit shall be admissible
only against a specific amount of credit, not being a provisional credit,
transferred by DEPB holder to such person. This means that clearance
against DEPB to any person other than DEPB holder can be permitted only
against specific amount of credit transferred by the DEPB holder himself.
Hitherto, Custom House has been permitting clearance against DEPB transferred
to the importer through intermediaries i.e. even in cases where DEPB was
transferred by a DEPB holder to a third person who in turn transfers it
to some other persons and ultimately to the importer. However, this
is not the intention of the said Customs Notification. It is, therefore,
certified that henceforth exemption of duty in terms of Notification No.
34/97-Cus shall be permiitted to a person other than a DEPB holder only
where a specific amount of DEPB credit has been transferred by the DEPB
holder to the importer directly.
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8. All debits of DEPBshall
henceforth be made on computer with reference to Registration No. allotted
at the time of verification by the Examiner. The Bills of Entry after
assessment by Appraisers and countersignature by Asstt. Commissioner shall
be presented for debit in the computer cabin on 4th floor of the Annexe
Building. DEPB debit in the computer system shall be in addition
in the ledger registers being maintained at present, till further orders.
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9. DEPB Scrips verified
either at Sahar or Nhava Sheva or Mumbai Custom House can be registered
at any one of these places according to the system prevalent at present.
The DEPB Scrips once registered at any of these places shall be debited
only at the respective place and clearance of goods, if desired, from the
place other than the place of registeration, shall be allowed only against
Release Advise. The earlier instructions contained in PN 93/98 dated
4/10/98 dispensing with Release Advise in case of DEPB Scrips verified
and embosed with perforated stamp are hereby withdrawn. The above
procedure comes into force with immediate effect.
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10. This issues with the
approval of the Chief Commissioner of Customs, Mumbai Zone, and would be
equally applicable for Air Cargo Complex. Sahar and Jawaharlal Nehru
Port Trust Nhava Sheva.
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Sd/-
(R.Sharma)
Commissioner of Customs
(E.P)
Annexure 'B'
Received
DEPB No. _______________ dated ____________ for verification which has
been conferred in the prescribed register at Sr. No. ____________ Verified
DEPB may be collected between 2 P.M. to 4 P.M. on __________ by the person
who has submitted the same.