TaxTMI 
TaxTMI 
DRAFT - Systems Alert for Monitoring Realisation of Export Proceeds in EDI - Reg.
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....tems Alert for Monitoring Realisation of Export Proceeds in EDI - Reg. I am directed to invite your attention to the above mentioned subject. 2. In terms of the provisions of Section 75 (1) of the Customs Act, 1962 read with sub-rule 16A(1) of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 where an amount of drawback has been paid to an exporter but the sale proceeds in respect of such export goods have not been realized within the time allowed under the Foreign Exchange Management Act (FEMA),1999, such drawback is to be recovered. Sub-rule 16A(2) stipulates that if the exporter fails to produce evidence in respect of realization of export proceeds within the period allowed under the FEMA, 1999 or any extension of....
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....atter was examined by the Board. For monitoring the realization of export proceeds for drawback purposes, the Board has decided that the exporters will submit a certificate from the authorized dealer (s) providing details of shipment which remain outstanding beyond the prescribed time limit including the extended time, if any, allowed by the authorized dealer/RBI on quarterly basis. However, the status holders and other exporters who are permitted to realize export proceeds within a period of 12 months or more will submit certificates once in six months only. Such certificate shall be furnished by the exporter port-wise. In order to put the exporters on notice at the time of export itself, an endorsement on the exporter's copy of shipping b....
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....time if any, allowed by AD/RBI. A proforma for furnishing such negative statement is enclosed as Annexure-I. Alternatively, the exporters may furnish BRCs. (e) Such certificates shall be furnished by the normal exporters on quarterly basis before the 7th day of January, April, July and October in respect of exports which have become due for realization in the previous month. For example for the quarter January to March 2008 (during which exports were effected), the statement / BRC would need to be submitted by the 7th October, 2008. However, the Star Export House and other exporters who are permitted to realize export proceeds within 12 months or more, shall submit such certificates once in six months, i.e., by the 7th day of January and ....
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....urnished by the exporter gives the list of SBs for which foreign exchange has not been realized (and by implication foreign exchange has been realized for all other SBs) then, the officer will choose option (3). This will allow the officer to enter the SBs for the given period for which the BRCs are pending. Thereafter, all SBs except such pending SBs will be deleted from the alert list. iv. The BRC entry module also enables the Department to remove the list of SBs from the alert list if drawback is recovered subsequently. In such cases, the officer may choose option (1) and enter the order no, challan no and date and also the no and date of all shipping bills for which the drawback has been realized. Thereafter, all SBs will be deleted fr....
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....ks in case of first time exporters, exporters who have taken large amounts of drawback suddenly, sensitive destinations, sensitive products etc. so as to ensure that there is no misuse of the drawback facility. They shall also exercise random audit checks in respect of other exporters to ensure that all export proceeds are realised. A proper record of all such audit checks and the period of audit should be maintained. 9. A suitable Public Notice and Standing Order may be issued for the guidance of the trade and staff. Difficulties faced, if any, in implementation of the Circular may be brought to the notice of the Board at an early date. Receipt of the Circular may kindly be acknowledged. Yours faithfully, ( P.K. MOHANTY) JOINT SECRETA....