CUS CIR NO. 88/2003 DATE 06/10/2003

CUS CIR NO. 88/2003 DATE 06/10/2003

Facility of permitting imports/exports against Telegraphic Release Advice (TRA) under Duty Free Credit Entitlement Certificate (DFCEC) for Status Holders, Duty Free Credit Entitlement Certificate (DFCEC) for Service Providers and Export Promotion Capital Goods (EPCG) Scheme-reg.
In terms of 2003-04 EXIM Policy announced on 31.3.2003, two new schemes namely, Duty Free Credit Entitlement Certificate (DFCEC) for Status Holders & Duty Free Credit Entitlement Certificate (DFCEC) for Service Providers have been announced. DOR has issued Customs Notification Nos.53/2003 and 54/2003 both dated 1.4.2003 to operationalise it. Similarly, in order to operationalise 5% duty EPCG Scheme announced in 2003-04 EXIM Policy, DOR has issued Notification No.55/2003-Cus. dated 1.4.2003. One of the common feature of all these notifications is that import under the aforesaid two credit certificate schemes and import/export under the new EPCG Scheme has been permitted only through places which are notified in these notifications.

2. Trade has represented that since the Credit Certificate Licences issued under the aforesaid two schemes to Status holders/Service providers would be issued with a specific port of registration, not providing the facility of TRA would adversely affect their import because the Licence holder would only be able to import goods against it from the Custom House which is mentioned as a port of registration on the said certificates. Similarly, now that Customs Notification No.55/2003 issued under 5% duty EPCG Scheme has also provided for permitting import/export under this Scheme only through places which are notified in the said notification, there is need to extend TRA facility under the new EPCG Scheme as well.

3. The issue has been examined in the Board and it has been decided that in respect of imports against Duty Free Credit Entitlement Certificate (DFCEC) Scheme for Status Holders, Duty Free Credit Entitlement Certificate (DFCEC) Scheme for Service Providers, & EPCG Scheme import of goods shall be permitted against TRA from any of the places which are notified in the three notification Nos.53/03, 54/03 and 55/03 respectively. TRA shall be issued in terms of instructions contained in the earlier DOR Circular No.67/2003-Cus. dated 28.7.2003 after verifying the genuineness of the certificate/licence by the Custom House at the port of registration. The Custom House at the port of registration of the licence shall issue TRA on the basis of value of imported goods as declared by the licence holder. The Custom House at the port of registration shall specifically advise the Custom House at the port of import to decide about the validity, eligibility, etc. of the goods under import against the certificate/licence. The responsibility to decide importability of goods against the said certificate/licence in terms of Customs Act and other Acts and Rules, etc. shall be that of the Customs Officer posted at the port of import. The Custom House receiving the TRA shall send details of imports effected to the concerned Custom House (who has issued the TRA) for the purpose of maintaining details of the use of TRAs and actual imports made against the said certificate/licence from other sea-ports/airports etc. in relevant register. The Assistant. Commissioner/Deputy Commissioner in-charge of the Custom Houses (who issues TRA) shall be responsible for maintaining proper account of goods actually imported through TRA facility to ensure that there is no misuse of this facility.

4. Suitable Standing Order and Public Notice for the guidance of staff and trade may kindly be issued.

5. Receipt of the Circular may kindly be acknowledged.

Yours faithfully,

(R.K. TALAJIA)
OFFICER ON SPECIAL DUTY (DBK)

Copy forwarded to DGFT.

F.NO.605/72/2003-DBK