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'Benefits on supplies from DTA linked to payment in foreign currency'

RoSL scheme has been brought back for a limited period

TNC Rajagopalan 

TNC Rajagopalan

Q. Our customer in the US has asked us to deliver our goods to a SEZ unit and agreed to pay us in foreign currency. Will this be considered as export for the purpose of drawback and other incentives?

As per Rule 24(3) of the SEZ Rules, 2006, “drawback or any other similar benefit under the Customs and Central Excise Duties Drawback Rules, 2017, as amended from time to time, against supply of goods by Domestic Tariff Area supplier shall be admissible where payments for the supply are made from the Foreign Currency Account of the Unit”. As per Para 4.21(iii) of FTP, “export to SEZ Units shall be taken into account for discharge of export obligation provided payment is realised from Foreign Currency Account of the SEZ unit.” Also, as per Para of 5.11 of HBP, “realization in case of supplies to SEZ units shall be from foreign currency account of the SEZ unit.” These conditions are not fulfilled on your case.

Q. We are re-importing some material exported earlier. We had claimed MEIS and have utilised it. So, we have to surrender that benefit, as per Para 3.24 of HBP. After import, as agreed with the buyer, we will send new material to the buyer, as replacement. As payment was received earlier, the replacement will be exported under GR Exemption. How to reclaim MEIS on the replacement exports, when there will be no fresh payment against the new shipping bill?

I am afraid you surrender the benefit you took and can’t get the benefit on free replacement.

This problem is not addressed under any of the current instructions or provisions. You may write to the DGFT and seek suitable dispensation.

Q. We want to import air lift platforms on lease basis and send it back. Is there any exemption and if so, what are the conditions?

You may refer to notification 72/2017-Cus dated August 16, 2017, for the exemption and the conditions for temporary import of goods on lease basis.

Q. The finance minister announced on September 14, 2019, that for textile sector MEIS + old RoSL will continue till December 31, 2019 and then be replaced with the Scheme of Reimbursement of Duties & Taxes on Export Products (RoDTEP). We are not able to comprehend this as the old RoSL scheme was replaced with a new RoSCTL scheme with effect from March 7, 2019. Can you help us understand?

As I understand, RoSL scheme has been brought back for a limited period.

Q. We want to export goods to few of our overseas clients, where prices are not fixed and can be finalised only after shipment. Can we export the goods and then settle the matter through debit and credit notes?

When the price is not fixed at the time of export, you may seek provisional assessment in accordance with Section 18 of the Customs Act, 1962, and get the final assessment shipping bill done upon finalisation of the price.

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First Published: Mon, September 23 2019. 15:58 IST