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SME Chatroom: Banks can write off import entry in IDPMS over quality issues

RBI rules allow AD Category-1 banks to close BoE for such import transactions where write-off is due to short shipment or destruction of goods by port/Customs/health authorities

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T N C Rajagopalan
Q. We are merchant exporters. We purchase various items from local parties and export under duty drawback (AIR) and RoDTEP schemes. Sometimes we get very good prices from the buyers for various reasons, including our negotiating skills. But, our consignments are frequently held up by the Customs on the grounds that the price at which we export is more than 150 per cent of the price at which we procure goods from domestic parties. What are the relevant legal provisions under the drawback or other rules, based on which the Customs can raise such objections?

Rule 9 of the Customs