ieport.com - India's Premier portal on Customs matters
----------------------------------------------------------------------------------------------------------
Customs Circular No.  21/2006 dated 10.8.2006
Sub : Re-export of goods imported under Served from India Scheme (SFIS) and Vishesh Krishi and Gram Udyog Yojana (VKGUY) found defective or unfit for use - reg.

In terms of Para 3.18.2 and Para 3.19.9 of the Handbook of Procedures, Vol.I of Foreign Trade Policy, goods imported under Served from India Scheme (SFIS) and Visesh Krishi and Gram Udyog Yojana (VKGUY), which are found defective or unfit for use, may be re-exported as per guidelines issued by the Department of Revenue. In such cases 98% of the credit amount debited against the SFIS/VKGUY scrip shall be generated in the form of a Certificate.

2. The matter has been examined further by the Ministry and it has been decided that in cases where the goods imported under SFIS/VKGUY are found defective or unfit for use, the same may be permitted to be re-exported by the Commissioner of Customs subject to the following conditions :-

3. In such cases, on re-export of goods, 98% of the credit amount debited in the SFIS/VKGUY scrip shall be generated by the concerned Custom House in the form of a Certificate. The said Certificate shall also contain details of the original SFIS/VKGUY scrip and the value, quantity and description of the goods exported.

4. Based on the aforesaid certificate issued by Customs, the concerned Regional Authority shall issue fresh SFIS/VKGUY scrip for 98% of the credit amount for the same port of registration and the validity of the SFIS/VKGUY scrip so issued shall be for a period equivalent to the balance period available in the earlier SFIS/VKGUY scrip on the date of import of such defective/unfit for use goods.

5. A suitable Public Notice and Standing Order may be issued for the guidance of the trade and staff. Difficulties faced, if any in implementation of the Circular may be brought to the notice of the Board at an early date.

Receipt of this Circular may kindly be acknowledged.

Yours faithfully,
(ANURAG BAKSHI )
S.T.O. (DBK)