We have to pay our UK-based supplier GBP 7856. Material is also received. Unfortunately we have lost the triplicate copy of bill of entry (exchange control copy). We had requested our bank to release payment by attaching xerox copy of bill of entry. But they are refusing to remit the money and asking original triplicate copy. Now how we can pay this supplier?
According to Para 9 a of the RBI Master Circular no. 08/2008-09 dated July 1, 2008, “ in case of all imports, where value of foreign exchange remitted/paid for import into India exceeds USD 100,000 or its equivalent, it is obligatory on the part of the AD Category — I bank through whom the relative remittance was made, to ensure that the importer submits the Exchange Control copy of the Bill of Entry for home consumption.” Therefore, the refusal of your bank to remit such a small amount is a bit surprising, especially when you have produced the photo copy of bill of entry. Please approach senior officers in your bank and offer to give a declaration that the original exchange control copy of bill of entry is lost and also an undertaking that in case you find the lost original copy of bill of entry, you will surrender to them.
We (electrical contractors) imported certain consignment into Special Economic Zone (SEZ) at zero duty. On de-stuffing of the containers, we found defective/damaged goods. As re-export was not feasible, we cleared it to our unit in Domestic Tariff Area (DTA) for repairs and subsequent re-sale. We wanted assessment at lower value, based on Chartered Engineer (CE) and invoked Section 22 (c ) of the Customs Act, 1962 (CA 62). The Customs assessed the bill of entry under Section 14 of CA 62 at 100 per cent of the imported value. Is the Customs officer correct?
Assessment under Section 14 of CA 62 is correct. In the absence of transaction value on clearance from SEZ to DTA, you can challenge the assessment on the basis of any claim settlement for defective goods by the seller or for damages in transit under a marine insurance policy. Without either claim settlement, it is far from certain that the payment for import into SEZ was for goods that were not defective/damaged.
We sometimes call foreign engineers for machine repair. We agree on per day charges. How we can pay the suppliers through bank in foreign currencies when we will not have supporting documents from Customs?
Supporting documents from Customs is not necessary in such cases. You can remit the payment on the basis of your contract with the foreign party regarding services to be rendered and charges agreed and the invoice of the party claiming the payment. Foreign Exchange Rules (Current Account Transactions) Rules, 2000 deal with such payments. The said Rules list the transactions which are prohibited. Your transaction is a current account that does not fall under any of the prohibitions.
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