 "Chatroom: ADD not exempt on imports under the EPCG authorisations")
Due to some delay in furnishing the evidence of discharge of export obligation against advance authorisations issued to us, our name has been put on the denied entities list (DEL) by our jurisdictional JDGFT. Does it mean we cannot carry on our import or export activities?
No. So long as you have an IEC and it is not suspended/revoked, your import and export activities can go on. When your name is put on the DEL list, you will not get licenses or authorisations or duty credit certificates from the offices of the DGFT, till your name is removed from the DEL list.
What is meant by ‘documents as presented acceptable’ in the context of documents to be presented under letters of credit?
This expression is not defined in the Uniform Customs and Practices for Documentary Credits, ICC Publication no. 600 — usually referred to as UCP 600. However, the International Standard Banking Practices for Examination of Documents under UCP 600, ICC Publication no.821 E, usually referred to as ISBP821, deals with the expression ‘documents as presented acceptable’. It says that a presentation may consist of one or more of the stipulated documents provided they are presented within the expiry of the credit and the drawing is within that available under the credit. The documents will otherwise not be examined for compliance under the credit or UCP 600, including whether they are presented in the required number of originals or copies.
We want to procure certain inputs from an EOU against an ARO issued by invalidating our advance authorisation in accordance with Para 4.20 of FTP. The EOU says that they will charge the BCD and SWS that they reverse. How to disburden those taxes as we will be using the inputs in the manufacture of our finished goods that will be exported?
If the inputs you procure are goods manufactured by the EOU, then the supplies to you against ARO qualify as deemed exports. You or the EOU can claim deemed exports drawback of the BCD and SWS paid back to the government by the EOU, as allowed under Chapter 7 of the FTP. If the EOU supplies its imported inputs as it is, then no deemed exports benefits will be available as they are not goods manufactured in India. Then, the option available to you is to claim drawback of the BCD and SWS paid as mentioned in Para 4.15 of FTP.
We have imported some capital goods under zero duty EPCG authorisations issued to us. Para 5.01 of the FTP says that EPCG Scheme allows import of capital goods (except those specified in negative list in Appendix 5 (F) for pre-production, production and post-production at zero customs duty. However, the Customs say that the capital goods we have imported attract anti-dumping duty and that the same is not exempted. Are they correct?
Yes. The notification no.26/2003-Cus dated 1st April 2023 does not exempt anti-dumping duty on goods imported under EPCG authorisations.
Business Standard invites readers’ SME queries related to GST, export and import matters. You can write to us at smechat@bsmail.in
Business Standard invites readers’ SME queries related to GST, export and import matters. You can write to us at smechat@bsmail.in