Apply for DFIA before exporting

CHATROOM

Para 4.4.2 of the Foreign Trade Policy says that in case of post export DFIA (Duty Free Import Authorisation), a merchant exporter shall be required to mention only the name(s) and manufacturer(s) of the export product. Can a manufacturer also apply for DFIA after exporting the goods covered by standard input output norms (SION)?

Please note that the same paragraph that you have referred also says that the application for DFIA must be filed before effecting exports under DFIA. So, a manufacturer or merchant must apply for DFIA before exporting any goods under the scheme, although there is a mention about Post Export DFIA in the Policy and in the application form prescribed for DFIA also. After exports, you can ask for redemption and transferability endorsement by filing Part II of form ANF4H of Handbook of Procedures, Volume 1

We are manufacturers paying service tax on the services provided by goods transport agencies. Can you please tell us the date from which we have to pay the secondary and higher education cess?

On the goods manufactured by you, the secondary and higher education cess of 1 per cent is payable with effect from 1st March 2007 and for the purposes of service tax the liability to pay the said cess arises with effect from May 11, 2007.

We have an export oriented unit. Sometimes, we receive goods from domestic suppliers against CT3 form that we have to reject for quality reasons and send back. Our Central Excise authorities say that we must get the approval of the Development Commissioner every time but this delays the return and sometimes the goods deteriorate in the process. Is there any alternative?

I suggest that you test the goods as soon as you receive but before you issue the re-warehousing certificate and if you find that the goods are sub-standard return them immediately without any permission. However, if you have issued the ARE3 re-warehousing certificate, you have no alternative but to get the no objection certificate from the Development Commissioner, who will allow you to send back the goods only if he is satisfied that no deemed export benefits have been taken or that the deemed export benefits against the supply, if taken, are paid back. For precise instructions, you may refer to CBEC Circular no. 74/20001-cus. dated 4.12.2001.

We had obtained EPCG license in 1995 and completed the export obligation in the year 1999. The JDGFT has issued export obligation certificate but the customs are not accepting the same on the grounds that we have not fulfilled the condition of block wise discharge of export obligation. What is the correct position?

In the similar case of Crystal Fashions versus Commissioner of Customs, Chennai [2007 (211) ELT 580 (T) Chennai], the tribunal has held that the customs cannot refuse to accept the discharge certificate issued by the JDGFT in the light of public notice no: 5/1997-2002, dated 6.4.1999. You may refer to the same.

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