Misuse of circular No.74/2002-Cus dated 8th November, 2002 - reg.

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....ntal Representative, Customs, Excise & Service Tax Appellate Tribunal, New Delhi. Sir/Madam, Sub:- Misuse of circular No.74/2002-Cus dated 8th November, 2002 - reg. I am directed to invite your kind attention to the Board's circular No.74/2002-Cus dated 8.11.2002. The said circular clarified that if the buyer and the seller have contracted goods on f.o.b. basis and the same is reflected in the contract and the Letter of Credit (LC), it is immaterial that the exporter has actually shipped the goods by air. The circular further stated that if the freight is on collect basis and the exporter is paying more as air freight due to the exigency of the situation without affecting the f.o.b., it would not be justified to rework the drawb....

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.... involve lot of manual work. In the process, delays take place forcing exporters to agree to the conditions dictated by buyers to bear air freight. Such instances occur occasionally but in not more than 2-3% of shipments of any exporter. While action may be taken against exporters who misuse provisions of law, all exporters should not be measured with the same yardstick. AEPC has requested that the field formations may be advised to grant drawback to the exporters in such exigencies and circular No. 74/2002-Cus re-clarified to them by the Board. The Ministry of Textiles has also supported the view of AEPC. 5. The issue has been re-examined by the Board. It is felt that the situations of exigencies as envisaged in the above mentioned circ....

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....efit of this Circular has been claimed. The Assistant Commissioner / Deputy Commissioner will satisfy himself about the bona fides of the case and take a decision in the matter. In the meantime, however, the Shipping Bill will be permitted to be filed, processed and the export shipment cleared like any other drawback shipment. It may be noted that the export shipment will, in no case, be stopped. The Assistant Commissioner/Deputy Commissioner will take a decision in the matter keeping in mind the upper limit of 3% prescribed for such cases of exigency and as far as possible, before the shipping bill comes to the Drawback queue so that the drawback can be sanctioned without delay. In case of any dispute, the drawback shall be released after ....