We have imported some inputs without duty payment by debit to Focus Product scrips. We have used the inputs in the manufacture of export products. Can we claim drawback of the duty paid by debit to the Focus Product scrips?
As per Para 3.17.6 of the Foreign Trade Policy (FTP), additional customs duty/excise duty paid in cash or through debit under duty credit scrips shall be adjusted as cenvat credit or duty drawback as per DoR rules, except under SFIS. The question is whether this Para bars drawback of basic customs duty or other duties paid through the duty credit scrips.
CBEC Circular no.26/2007-Cus dated 20.07.2007 says that "in case of clearances under DEPB Scheme, the amount of duty payable is required to be debited from DEPB scrip. Therefore, it cannot be considered that the duty payable is nil or exempted." Based on that Circular, you should get drawback of all duties paid through debit to other duty credit scrips also.
We have a formulation (tablets/capsules, etc.) manufacturing unit A and a bulk drugs manufacturing unit B. We have orders to export formulations. For manufacture of the formulations in A, we need bulk drugs from B. Can we obtain advance authorisation in Unit A showing bulk drugs as an input and get an invalidation issued in favour of our own Unit B for procuring bulk drugs?
The FTP is not explicit on this point. However, I do not see any issue in obtaining invalidation in favour of Unit B for any input in any advance authorisation issued to Unit A.
On the basis of invalidation, Unit B can get an advance intermediate authorisation. You have to take note that for showing fulfilment of export obligations, besides the evidence of supply of specified bulk drugs to Unit A, Unit B will have to furnish a Bank Certificate in Appendix-22B of the Handbook of Procedures, Vol. 1 evidencing receipt of payment from Unit A.
We want to re-import exported goods rejected by the buyer. We will repair and re-export the goods. For duty free import of the re-imported goods under notification 158/95-Cus dated 14.11.1995, we need to furnish a bond. What is the amount of bond we need to furnish?
As per Section 20 of the Customs Act, 1962, "if goods are imported into India after exportation therefrom, such goods shall be liable to duty and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof". So, you may calculate the amount of duty leviable, as if it is a fresh import and furnish a bond for that amount to get duty free clearance under the said notification.
Can we get the benefit of the Status Holder Incentive Scrip (SHIS) scheme against export of articles of iron and steel (HS Code 73239390)?
It is an engineering product covered under Para 3.16.4 of the FTP and so you can get the SHIS benefit.
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