We are having Customs permission for self-sealing of containers under free shipping bill scheme which is valid up to May 29, 2014. Now we are in the process of making a new application. We would like to take duty drawback benefit scheme under self-sealing Customs permission. Can you please help us with the circular related to this matter?
For the procedure for getting factory stuffing permission, you may refer to JNPT Customs House Public Notices no. 23/2010 dated 26.02.2010. 60/2010 dated 1.7.2010, 100/2010 dated 7.10.2010, 2/2011 dated 5.1.2011 and 47/2012 dated 13.08.2012 at the website www.jawaharcustoms.gov.in.
I refer to your Q&A dated April 8, 2014. I find that as per Para 5.11 of the 2005-06 FTP, the exporter was required to fulfill 75 per cent of export obligation (including average level of exports). The provision was that the exporter was required to fulfil 75 per cent export obligation, i.e., average level of exports + specific obligation in less than four years of the export obligation period in order to obtain the benefit. This provision continued up to August 25, 2009. On August 26, 2009, the provision was changed to read 100 per cent of average level of exports + 75 per cent of specific export obligation. Please review and explain/clarify for my correct understanding.
I see no reason to change my opinion, given earlier, that if the exporter has met 100 per cent of the annual average exports stipulated plus 75 per cent of the specific export obligation within half the export obligation period, then he can get the benefit of Para 5.11 of FTP 2005-06. That position continues with greater clarity in the 2009-14 FTP also.
Suppose the FOB value of goods is Rs 100 and on the basis of cap value it works out to Rs 80 and the exporter is granted drawback on Rs 80. If there is short realisation but cap value has been realised, i.e., Rs 80, is the exporter still required to surrender DBK proportionate to full FOB value of Rs 100?
As I have explained in the Q&A column dated April 8, 2014, value caps given at Columns 5 and 7 of the Drawback Rate Schedule refer to the maximum amount of drawback that can be availed of per unit specified in Column 3 of that Schedule. They do not refer to the FOB value. In case of short realisation of export proceeds, proportionate drawback has to be surrendered as per RBI Master Circular on export of goods and services.
We have exported parts of pumps under HS code 84139190. We applied for Focus Product Scheme to JDGFT as per Appendix 37D under HS code 8413, item description as 'all pumps for liquids (liquid elevators)' and against Sr. No. 407 @ 5 per cent. JDGFT has rejected our claim on the grounds that we have exported parts of pumps only and not the complete pump. He rejected our plea that all items falling under the eligible HS code 8413 should get FPS. Therefore, kindly guide us in this matter.
In my opinion, the JDGFT is correct.
For the procedure for getting factory stuffing permission, you may refer to JNPT Customs House Public Notices no. 23/2010 dated 26.02.2010. 60/2010 dated 1.7.2010, 100/2010 dated 7.10.2010, 2/2011 dated 5.1.2011 and 47/2012 dated 13.08.2012 at the website www.jawaharcustoms.gov.in.
I refer to your Q&A dated April 8, 2014. I find that as per Para 5.11 of the 2005-06 FTP, the exporter was required to fulfill 75 per cent of export obligation (including average level of exports). The provision was that the exporter was required to fulfil 75 per cent export obligation, i.e., average level of exports + specific obligation in less than four years of the export obligation period in order to obtain the benefit. This provision continued up to August 25, 2009. On August 26, 2009, the provision was changed to read 100 per cent of average level of exports + 75 per cent of specific export obligation. Please review and explain/clarify for my correct understanding.
I see no reason to change my opinion, given earlier, that if the exporter has met 100 per cent of the annual average exports stipulated plus 75 per cent of the specific export obligation within half the export obligation period, then he can get the benefit of Para 5.11 of FTP 2005-06. That position continues with greater clarity in the 2009-14 FTP also.
Suppose the FOB value of goods is Rs 100 and on the basis of cap value it works out to Rs 80 and the exporter is granted drawback on Rs 80. If there is short realisation but cap value has been realised, i.e., Rs 80, is the exporter still required to surrender DBK proportionate to full FOB value of Rs 100?
As I have explained in the Q&A column dated April 8, 2014, value caps given at Columns 5 and 7 of the Drawback Rate Schedule refer to the maximum amount of drawback that can be availed of per unit specified in Column 3 of that Schedule. They do not refer to the FOB value. In case of short realisation of export proceeds, proportionate drawback has to be surrendered as per RBI Master Circular on export of goods and services.
We have exported parts of pumps under HS code 84139190. We applied for Focus Product Scheme to JDGFT as per Appendix 37D under HS code 8413, item description as 'all pumps for liquids (liquid elevators)' and against Sr. No. 407 @ 5 per cent. JDGFT has rejected our claim on the grounds that we have exported parts of pumps only and not the complete pump. He rejected our plea that all items falling under the eligible HS code 8413 should get FPS. Therefore, kindly guide us in this matter.
In my opinion, the JDGFT is correct.
Business Standard invites readers' SME queries related to excise, VAT and exim policy. You can write to us at smechat@bsmail.in