Recently we shipped some brass and bronze handmade articles through couriers. Their shipping instructions sheet had a drawback section for mentioning the scheme but there was no space for filling this in. We did not fill it and instead sent an email message to them giving our drawback account number and bank’s name. They did not ask us about anything or for any other documents and shipped the articles without claiming drawback. Due to this we incurred a loss. The courier company now says that it is not their responsibility and that they cannot claim the drawback. Please advise on how we can claim drawback.
Apparently, the shipment has been effected under Courier Shipping Bill. As per the Regulation 2(2) of the Courier Imports and Exports (Clearance) Regulations, 1998, “these Regulations shall not apply to the goods proposed to be exported with the claim for drawback.” Similar restrictions appear in Rule 2(2)(b) of the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010. Therefore, the couriers were required to file a separate drawback shipping bill and make the necessary declarations as per Rule 12 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. Since that has not been done, the drawback is not admissible in your case. It is unlikely that the Customs will allow conversion of the shipping bill at this stage, as the goods may not have been subject to examination at the time of exports. Therefore, your only recourse is to take up the matter with the couriers, if you are certain of establishing breach of contractual obligations.
Precious metal jewellery exporting units in SEZs normally manufacture jewellery as per the tailor-made specifications of overseas importers. They also undertake repair/remaking of defective or out of fashion jewellery of overseas buyers other than of Indian origin also. Can an overseas buyer supply inputs required for the manufacture of such jewellery (including repair or remaking) free of cost or on loan basis to the SEZ unit, for exporting back after manufacturing, as per the overseas buyer’s tailor-made specifications or undertaking repair/remaking and charge only the cost of manufacture/ repair/remaking (excluding the cost of inputs)?
The SEZ Act, 2005 or SEZ Rules, 2006 do not specifically deal with obtaining goods free of charge or loan basis directly from overseas customers (allowed through nominated agencies) for manufacture, repairs or remaking and subsequent re-export. However, in my opinion, that is no bar to carry on the said activities, so long as the SEZ unit has the necessary approval for the said manufacturing or service activities. In my opinion, no separate approval is necessary for obtaining the goods free of charge for carrying out such activities in the SEZ. Para C.14(ii) of RBI Master Circular no. 13/2012-13 dated 1st July, 2012 says that EOUs and units in SEZs who are in the gems and jewellery sector can import gold on a loan basis for manufacturing and export of jewellery on their own account only.
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