CBEC further eases procedures for exporters under EPCG

The CBEC has also asked for speedier methods in the bond cancellation procedure so that the exporter is not asked to routinely produce information that can actually be procured from the Customs EDI system.

 

A detail of the instructions is given in the following points:

 

1. In the earlier notification - Circular No.5/2010-Cus dated 16.3.2010 and Instruction No.609/119/2010-DBK dated 18.1.2011-  the correctness of the installation certificates issued by Chartered Engineers was to be verified on a random basis in at least 5% cases through the Central Excise Division. The Board has decided through this notification that the verification shall be restrained to 5% cases.

 

2. Also as per the earlier notification if the exporter had not got his EO verified thoroughly by the EODC the first time but has submitted the EODC, then the EODC may be accepted subject to random verification of at least 5% of EODCs issued in such past cases. And not meeting the block-wise EO attracts composition fees or payment of duty with interest has been detailed in the HBP. Similar such provisions detailed in the present notification have to be strictly followed by the RA's before issuing EODC/redemption/closure letters.

 

3. In the light of this, Board has decided that Customs authorities need not replicate the verification of export obligation of the first block that is being conducted by Regional Authorities and that the EODCs received under EPCG Scheme in terms of FTP/HBP 2004-09, 2009-14 and 2015-20 be normally accepted without further verification, except in 5% cases where they be verified in detail before acceptance.

 

4. The Commissioners are also directed to ensure transparent random selection criteria and selection for 5% check being made at least at Joint/Additional Commissioner level and the relevant exporter being invariably informed, on the date of selection itself, via official email communication that his/her case has been selected for detailed checks. Credibility and transparency may be brought into the Bond cancellation process which may be made speedier.

 

With the easing of these procedures the CBEC is making attempts to address the issues that the exporters face during checks and bonds cancellation procedures