Q. Is it necessary that goods stored in customs bonded warehouse have to be first processed for value addition and then removed for re-export or for local consumption?
No. You can re-export the warehoused goods under Section 69 of the Customs Act, 1962 without any processing. You can also clear the warehoused goods in DTA without any processing under Section 68 of the Customs Act, 1962. The conditions for such re-export or DTA clearance are spelt out in those legal provisions.
Q. We are auto parts manufacturers and facing a problem of non-clearance of long-pending shipping bills, due to which the name of our concern is appearing in the RBI Caution List. The pending shipping bills pertain to Financial Years 2013-14, 15-16, 16-17, 17-18 and 18-19. Most of the cases are of short payments (by more than 25 per cent) or no payments (100 per cent), due to quality problems or rejections destroyed at the customer’s end. There is no record available for matching of adjustments/deductions made by the customer from the payments towards old rejections/material scrapped at their end. There is also a case, where due to some inadvertent mistake, excess rate was charged in the export bill, and thereafter a credit note (of about 38.06 per cent of the export bill) was issued to the customer towards rectification of the error. Further, our cases for write-off do not fall under the categories/circumstances given in the provisions/guidelines of RBI Master Circular [for write-off of unrealised export bills (C.23)]. How can such long-pending shipping bills be cleared/closed?
Para C.23(xi) of the Master Direction no.16/2015-16 dated January 1, 2016 (as amended) says that cases not covered by the above instructions/beyond the above limits, may be referred to the concerned Regional Office of the Reserve Bank of India. So, you may approach the RBI through your bank.
Q. In our EPCG authorisation issued under FTP 2011-12, as per prevalent policy, we obtained JDGFT’s permission to fulfill EO through exports of a group company. Now, is it obligatory for the authorisation holder to fulfill 50 per cent EO first and thereafter fulfill remaining 50 per cent EO to be fulfilled by the group company? Also, suppose 50 per cent of EO is fulfilled by the group company and remaining 50 per cent of EO is not fulfilled by authorisation holder, will it be considered that 50 per cent EO stands discharged under authorisation?
There is no requirement that you have to fulfill 50 per cent EO first and thereafter count the remaining 50 per cent of the EO through exports of your group company. Also, there is no bar on counting 50 per cent of the EO through exports of a group company, even if you have made no exports.
Q. As per Para 2.50A of FTP, “Imported goods found defective after Customs clearance, or not found as per specifications or requirements may be re-exported back as per Customs Act, 1962”. What is the corresponding provision for re-exporting goods back, as per the Customs Act 1962?
You may refer to Section 26(1)(d)(i), Section 69 and Section 74 of the Customs Act, 1962.