Page 54 - Craftcil Feb 2024

impex

Amended Para 2.51 (d)(v)(iv) of HBP: Import consignments of metallic waste and scrap shall be subject to pre-shipment
inspection certificate (PSIC) from the country of origin. However, metallic waste and scrap (both shredded and untedded)
imported from safe countries / region i.e., the USA, the UK, Canada, New Zealand, Australia and the EU will not require PSIC
if consignments are cleared through eleven (11) ports namely, Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam,
Mundra, Kattupalli, Hazira, Kamarajar and Adani Gangavaram Port. Consignments from these six countries / regions will be
accompanied by certificate from the supplier / scrap yard authority to the effect that it does not contain any radioactive
materials / explosives. These will however be subject to radiation and explosive checks through portal monitors and container
scanner at these ports. Transshipments through these countries / regions will not be allowed this facility. Import through
remaining eight (08) other ports (for both shredded and untedded scrap / waste), irrespective of country of origin, will be
subject to PSIC.
Effect of the Public Notice: Para 4.36 of the Handbook of Procedures 2023 has been amended, to ease the clubbing provisions
in respect of Advance Authorization Scheme, for ease of doing business.

Impex # 4 Questions & Answers
Question : What is the duty applicable for DTA sales by an SEZ?
Answer : As per the current procedure any goods removed from a Special Economic Zone to the DTA shall be chargeable to
duties of customs which includes basic customs duty, IGST, antidumping, countervailing and safeguard duties (under
the Customs Tariff Act, 1975), wherever applicable, as leviable on such goods when imported. The rate of duty and
tariff valuation, if any, applicable to goods removed from a Special Economic Zone shall be at the rate and tariff valuation
in force as on the date of such removal, and where such date is not ascertainable, on the date of payment of duty.
Question : Our shipping bill has been transmitted by GSTN to Customs and there is no error in the refund claim also.
Yet the refund has not been received in the bank account. What should we do?
Answer : SB000 (Successfully Validated) is the response code which comes when all the decided parameters like GST1N,
Shipping Bill (SB) number, invoice number etc. match between GSTN and Customs databases. This code implies that
the SB is ready for inclusion in the IGST refund scroll. However, it might happen that even with SB000. The SB does not
appear in the refund scroll. This could be due to: (i) The exports may have been made under Bond or LUT, hence they
are not eligible for IGST refund. (ii) If a shipping bill covers multiple invoices, few of the invoices might have been
successfully validated with code SB000 while other invoices may be containing other types of error/s. (iii) Where the
IGST claimed amount is less than Rs 1000. In all the above cases, the scroll amount shall automatically become zero
and the SBs shall not be included in the refund scroll. (iv) This could happen if there is an alert/suspension on the IEC
in ICES or if the account of the IEC is not validated by PFMS.
Question : In case of non-realisation of export proceeds for exports made under the RoDTEP Scheme, is it recovered
from the transferee who is an importer?
Answer : No. This was true only till 13th September, 2022 as Government amended the relevant Customs Notification prescribing
the same by Custom Notification No. 75/2022(NT) dated 14th September, 2022, deleting reference of transferee for
any recovery either on non-realisation of exports proceeds by the exporter or inadvertent excess release of RoDTEP
to exporter, which may have been subsequently utilised by the transferee.
Question : What is the effect of caution listing by the RBI in case of non- realisation of the exports proceeds?
Answer : When a caution listed exporters submit shipping documents for negotiation/purchase/ discount/collection, etc. the
bank may accept the documents subject to following conditions:
i. The exporters concerned should produce evidence of having received advance payment or an irrevocable letter
of credit in their favour covering the full value of the proposed exports.
ii. In case of usance bills, the relative letter of credit should cover full export value and also permit such drawings.
Besides, the usance bills should also mature within prescribed realisation period reckoned from date of shipment.
iii. Banks should not handle the shipping documents of caution listed exporters.
Banks should obtain prior approval of the Reserve Bank for issuing guarantees for caution listed exporters.

54 CRAFTCIL • February 2024