DGFT website malfunction troubles

The website of the Director General of Foreign Trade (DGFT) through which the electronic applications for various authorisations and duty credits have to be filed has not been functioning properly for the last two weeks. The regional offices of DGFT are not accepting manual applications. As a result, exporters are facing difficulties which call for immediate attention of DGFT.

Exporters are unable to file their applications for duty credits under the Duty Entitlement Passbook (DEPB) scheme, Focus Product Scheme, Focus Market Scheme, etc. While their duty credit entitlements are getting delayed, some exporters may even miss the last date for filing the applications. The DGFT should assure the exporters that delay in filing the applications due to no fault of theirs will not result in either the mandatory cuts in entitlements or denial of benefits.

Some exporters are able to file their applications for advance authorisations, or EPCG (Export Promotion Capital Goods) authorisations, but after accepting the application, the system does not generate the file number and the regional offices are not able to issue the authorisations. Without the file numbers, exporters are unable to export their goods in discharge of obligation against the authorisations. DGFT must assure the exporters that exports during the period of disruption will be counted towards discharge of authorisations issued after the problems are sorted out.

Many import clearances are held up for want of advance authorisations, or EPCG authorisations. DGFT should ask the Customs to release such consignments against provisional duty bond till the problems are sorted out and to allow duty exemption for such clearances as and when the importers produce before the Customs the authorisations that are issued after the problems are overcome. DGFT can talk to the custodians and ask them to waive or reduce the demurrage, which are incurred due to failure of the importers to produce the authorisations caused solely by the inability of the regional offices to issue the authorisations.

Exporters/importers are also facing difficulties in Customs stations where the ICES version 1.5 has been introduced, as some staff members handling the computer systems are not trained well enough. Besides, there are complaints that the new system is slow and that the font is so small that few can read what is printed on the shipping bill. Also, there are problems like incorrect numbering of the pages of a shipping bill, etc. The Central Board of Excise and Customs (CBEC) should quickly attend to these problems.

DGFT has issued a circular clarifying that the declaration of intent for claiming the benefits under Chapter 3 of the Foreign Trade Policy (FTP) and mention of 8 digit ITC (HS) Code on the shipping bill has been made mandatory for all types of shipments. Earlier, the declaration of intent was required only for exports under free shipping bills.

CBEC has instructed that all pending 4 per cent CVD refund claims under notification number 102/2007-Customs dated September 14, 2007 and notification number 93/2008-Customs dated August 1, 2008 should be disposed of despite the fact that the assessment continues to be provisional without awaiting for finalisation of assessments. CBEC has also permitted grant of a single factory stuffing permission for exports valid for all the Customs stations instead of Customs station-wise permission, subject to certain conditions. These instructions will help the importers and exporters.

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