Standard Operating Procedures regarding monitoring of Export obligation fulfilment under EPCG and Advance authorization scheme

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....owards following Board's Circulars/Instructions. i. Board's Circular No: 05/2010-Customs, dated 16.03.2010. ii. Board's Instructions No: F.No-609/118/2010-DBK, dated 18.01.2011. iii. Board's Instruction No: F.No-605/71/2015-DBK, dated 14.10.2016. iv. Board's Instruction No: F.No-605/85/2016-DBK dated 02.05.2017. 2. Relevant Customs Notifications governing implementation of EPCG and Advance authorization scheme, provides that the exporter should discharge the export obligation within the specified time limit or within such extended period as may be permitted. Further, under EPCG scheme, the installation certificates are required to be submitted within six months of completion of imports/ three years in case of ....

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....self may be replaced by issuing of simple notice to defaulters. Accordingly, it has been prescribed that the field formation may issue simple notice to the licence/authorization holders for submission of proof of discharge of export obligation. In case where the licence/authorization holder submits proof of their application having been submitted to DGFT, the matter may be kept in abeyance till the same is decided by DGFT Institutional mechanism set up in terms of Instruction NO F.N0-609/119/2010-DBK, dated 18.01.2011 for regular interaction with RA's of DGFT should be used to pursue such cases. However, in cases where the licence/authorization holder fails to submit the proof of their application for EODC/redemption certificate, extens....

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....ccordingly, it is evident that in case of default, the amount of duty along with interest is payable immediately by the license holder. For this purpose, if such amount is not paid immediately on demand by customs, the same is to be recovered in terms of section 142 of the Customs Act 1962 which also includes that such amount can be recovered by detaining and selling any goods which are under the control of officer of Customs. 7. It is a settled law that in case of non-fulfilment of post import conditions, the goods are. liable for confiscation u/s 111 (o) of the Customs act 1962 and penalty is leviable u/s 1.12(a) of the said act. Accordingly, in cases where goods appear liable for confiscation or license holder / concerned person appear....