We have a manufacturing unit in a Special Economic Zone (SEZ). We have now received an order from Nepal, for which payment will come in Indian rupees. Can you give us the specific legal provisions we need to take care of?
Export to Nepal is not specifically covered under the SEZ Act, 2005, or the SEZ Rules, 2006. So, the normal export provisions ought to apply — i.e., filing the bill of export with the SEZ Customs and then, after assessment, presenting this to the Customs at the land customs station at the border with Nepal. The excise law is not applicable to manufacturing units in SEZs. The Reserve Bank of India does not cover exports from SEZs to Nepal, specifically in its Master Circular on export of goods and services.
We have claimed duty drawback after fixation of the brand rate by our central excise authorities. When we presented the brand rate letter before the Customs, they pointed out that ours was a DEEC shipping bill and not a drawback shipping bill or a DEEC-cum-DBK shipping bill. In fact, we were to file the DEEC-cum-DBK shipping bill, but our CHA by mistake failed to mention DBK, and we did not notice the mistake earlier. Is there any way to overcome this problem?
According to Rule 12 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, you are required to make a declaration on the relevant shipping bill that a claim for drawback under these rules is being made. I believe your claim is being rejected for want of that declaration. The first proviso to the same Rule 12 says if the Commissioner of Customs is satisfied that the exporter or his authorised agent has, for reasons beyond his control, failed to comply with the provisions of this clause, he may, after considering the representation, if any, made by such exporter or his authorised agent, and for reasons to be recorded, exempt such exporter or his authorised agent from the provisions.
Second, if any of your pre-shipment documents, like ARE-1, are evidence that you intended to file the DEEC-cum-DBK shipping bill, you can seek an amendment to the shipping bill. Section 149 of the Customs Act, 1962, allows amendment to the shipping bill based on any document that existed at the time of export. CBEC Circular no. 36/2010, dated 23.9.2010, specifies certain other conditions for conversion of shipping bills. As examination norms for DEEC shipping bills and DEEC-cum-DBK shipping bills are the same, you fulfil most of the conditions. The circular requires that you request for conversion within three months from the ‘Let Export Order’, but no such condition is there in the statute. If you do not meet any of the conditions, you may ask for relaxation of rules, in accordance with Rule 17 of the said Rules. So, you may explore the above three options sequentially.
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