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Customs can ask for buy invoices from exporters claiming DBK, Rodtep Categorical Occasions

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Illustration: Ajay Mohanty


As merchants, we purchase items from the home market and export, claiming responsibility disadvantage at All Business Charges and Rodtep advantages. Are the Customs justified in asking for our buy invoices?

 


Sure. Rule 9 of the Customs and Central Excise Duties Disadvantage Guidelines, 2017 and proviso at Para 2(1)(b) of notification no.76/2001-Cus (NT) dated twenty third September 2021 put a cap on the quantity of disadvantage and Rodtep credit score that may be granted, based mostly in the marketplace value of the products.




I check with Sections 25A and 25B of the Customs Act, 1962 that take care of inward processing of products and outward processing of products. Can we go for the dispensations given right here for importing or exporting items for job-work?

 


No. These Sections, launched by the Finance Act, 2018, require the federal government to challenge exemption notifications. Virtually six years have handed; nonetheless, the federal government has not issued any notification below these Sections. So, they continue to be inoperative.

 


I’m not glad along with your reply that in respect of exports of SCOMET objects below GAEC the federal government desires to make sure that the exporter has sufficient confidence within the purchaser/finish consumer to take accountability for his or her actions. (SME Chatroom January 9, 2024). My level is that even when we do all of the due diligence and even incorporate a clause within the buy order that the objects exported shall not be used for any function aside from the aim(s) acknowledged within the EUC (Finish Person Certificates) and that such use shall not be modified nor the objects modified or replicated with out the prior consent of the Authorities of India., it’s not doable for us to make sure that the client/finish consumer will all the time adjust to that situation. We now have no management as soon as the products depart our arms. So, please advise us how we will proceed?

 


Because the Para 10.16 A.II.b.ii of HBP reads at this time, the applicant exporter is required to declare that the objects which might be meant to be exported shall not be used for any function aside from the aim(s) acknowledged within the EUC (Finish Person Certificates) and that such use shall not be modified nor the objects modified or replicated with out the prior consent of the Authorities of India. I agree that this provision is unreasonable however as long as the availability exists, the federal government is prone to insist that you simply adjust to that requirement. I feel it is best to characterize to the DGFT your problem in giving such a declaration and pursue the matter until that provision is modified.

 


Part 65A was inserted within the Customs Act, 1962 by the Finance Act, 2023 offering for levy of Built-in GST and Compensation Cess on items imported for manufacturing in bonded warehouses. This Part was to take impact from a date to be notified by the federal government. Has this Part come into impact and if that’s the case, since when?

 


No. The federal government has not but notified the date when the provisions of this Part will come into impact.

First Printed: Jan 23 2024 | 12:00 AM IST


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