Home consumption's bill of entry can be substituted with 1 for warehousing

We have filed a bill of entry for home consumption but due to some financial difficulties, we are unable to pay the duty immediately. So, we want to put the goods in a public bonded warehouse and clear the goods when we have the money to pay the duty. Can we do that?
 

Section 46(5) of the Customs Act, 1962, says that  ‘if the proper officer is satisfied that the interests of revenue are not prejudicially affected and that there was no fraudulent intention, he may permit substitution of a bill of entry for home consumption for a bill of entry for warehousing or vice versa’. So, you have to file a request with the proper officer and satisfy him that the revenue interests are not prejudicially affected if he allows the goods to be stored in a bonded warehouse and get his permission.
 

We are an EOU. We are reversing the BCD when we clear our finished goods in DTA but we are not reversing the BCD when we clear the waste and scrap arising during manufacture of our finished goods into DTA,. Now, the audit party says that as per Para 6.8(a) of FTP, we must reverse the BCD in such situations also. Are they correct?
 

The last part of Para 3 of the exemption notification 52/2003-Cus dated March 31, 2003 says that ‘in case of waste and scrap within SION or within norms fixed by the Norms Committee or norms as approved by the Board of Approval the exemption in respect of goods imported or procured under this notification would continue to be admissible’. Therefore, if the waste or scrap generation is within the standard or approved norms limit, there is no need to surrender BCD while clearing the waste or scrap in DTA. However,  you must reverse i.e. pay the BCD exemption availed if you want to clear in DTA the waste or scrap in excess of what is permitted in the standard or approved norms.
 

We have imported our inputs under advance authorisations issued in the 2015-20 FTP period without IGST payment, under the notification 18/2015-Cus dated April 1, 2015. We have been exporting the finished goods under LUT without IGST payment in accordance with Rule 96(10) of the CGST Rules, 2017. We now want to make deemed exports (mentioned in notification 48/2017-CT dated October 18, 2017) of our finished goods manufactured from such inputs imported without IGST payment. Is there any requirement that we must make such deemed exports also without GST payment?
 

No. Any option for making supplies without GST payment is not available for such deemed exports. You have to pay the GST and if you so desire, refund of the same can be claimed.
 

Can we receive advance payment from our foreign buyers for exports to be made after 12 months?
 

Yes, in accordance with Para C.2 (2) of RBI Master Direction no.16/2015-16 dated January 1, 2016 on exports of goods and services.