Customs should not act while redemption application is pending with DGFT

In respect of several advance authorisations issued to us, we have completed the EO and submitted redemption applications to the JDGFT. These are pending since several months. Now, the Customs have issued notices to us, alleging non-fulfillment of EO and threatening to enforce the bond furnished by us at the time of imports, despite our informing that the EO is fulfilled and that our redemption application is pending before the JDGFT. Can you give us any material that we can put before the Customs to insist that they should not take any action in the given circumstances? 

CBIC Circular no 16/2017-Cus dated May 2, 2017 says that ‘in  case  where  the  licence/authorisation  holder submits proof of their application having been submitted to DGFT, the matter may be kept in abeyance till the same  is  decided  by  DGFT.  Institutional mechanism set up in terms of Instruction F. No. 609/119/2010-DBK dated January 18, 2011 for regular interaction with RA’s of DGFT should be used to pursue such cases.  

However, in cases where the licence/authorisation holder fails to submit proof of their application for EODC/Redemption Certificate, extension/clubbing etc., action for recovery  may be initiated by enforcement of Bond/Bank Guarantee. In cases of fraud, outright evasion, etc, field formations shall continue to take necessary action in terms of the relevant provisions’. You may put the above circular before the Customs along with the copies of your redemption applications and the acknowledgements received from the JDGFT office and ask them not to take any action. 

We had transferred goods manufactured in our SEZ unit to a bonded warehouse, by filing a bill of entry for warehousing (in bond B/E) in accordance with Rule 38(13) of the SEZ rules, 2006. Those goods have been exported under Section 69 of the Customs Act, 1962 by filing an ex-bond shipping bill. Can we count the exports in our NFE calculations? 

Rule 53 of the SEZ Rules, 2006 has no provision to count any supply from a SEZ unit to a bonded warehouse as earnings for the purpose of NFE calculations. 

We refer to the CBIC Circular no 15/2023-Cus dated June 7, 2023 asking the importers for mandatory declaration of IUPAC name and CAS number of the constituent chemicals, for imports under the chapters 28, 29, 32, 38, and 39, while filing the B/E. Our supplier is unwilling to give the information regarding the ingredients due to confidentiality issues. How to proceed further? 

The CBIC Circular no 23/2023-Cus dated September 30, 2023 says that in case of non-availability of information for even  one ingredient with the importer for the reason that information is not shared by the supplier due to confidentiality, the importer can give a self-undertaking in the B/E that the information related  to IUPAC and CAS number is not in his possession as the same is not provided by the supplier due to confidentiality.  

The circular also says that the details  of constituents  declared in the B/E will  be  printed as ‘masked fields’ in the B/E.