Conversion between export incentive schemes permitted where customs circulars and records support reconsideration of shipping bills.

Conversion of export shipping bills from the DEEC Scheme to the Duty Drawback Scheme was examined under the applicable customs circulars and the surrounding customs record. The analysis noted that the relevant shipping bills were unrelated to the export consignment that triggered the dispute, and that later trade records showed them as settled rather than provisional. It also relied on the principle that conversion between export incentive schemes may be permitted where the governing circulars and factual matrix support reconsideration. On that basis, the rejection of conversion was found unsustainable and conversion to the Duty Drawback Scheme was held to be available.

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Issues: Whether the appellant was entitled to conversion of the two shipping bills from the DEEC Scheme to the Duty Drawback Scheme under the applicable customs circulars.

Analysis: The conversion request was examined in the context of the customs record and the adverse DRI report, but the shipping bills for which conversion was sought were found to be unrelated to the export consignment that triggered the controversy. The later foreign trade order and the record before the customs authorities indicated that the relevant shipping bills had been settled and were not provisional. The Tribunal also relied on the principle that conversion between export incentive schemes is permissible where the governing circulars and surrounding facts support reconsideration, particularly in light of the Board's policy permitting such conversions after the prescribed exercise and the reasoning adopted in the cited precedent.

Conclusion: The rejection of conversion was not sustainable and the appellant was entitled to conversion of the shipping bills to the Duty Drawback Scheme.

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