IDT Digest for March 2, 2017

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  • Notification: Customs:

Exemption from duty to authorised offices or agencies in India from exportation and re-importation of cut and polished diamonds

The Central Government vide Notification No. 07/2017 – Customs dated March 1, 2017 has amended the Notification No. 09/2012- Customs dated March 9, 2012 (“the Notification No. 09”) dealing with ‘duty free re-import of cut & polished diamonds into India after certification/grading by the laboratories / agencies as notified in the Foreign Trade Policy’ by inserting new para after proviso to condition (v) and substituting the Explanation wherein meaning of ‘Foreign Trade Policy’ is explained.

With effect of this amendment, the authorised offices or agencies in India of the laboratories mentioned under paragraph 4.74 of Handbook of Procedures 2015-2020, on behalf of the exporters, can undertake exportation and re-importation of cut and polished diamonds without payment of duty subject to the fulfilment of conditions (ii),(iii),(iv) and(v) specified in the Notification No. 09 and in the Foreign Trade Policy 2015-2020 and Handbook of Procedures 2015-2020.

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  • Circular: Customs:

1. Acceptance of e-BRC of DGFT as proof of realization of sale proceeds for exports with LEO date 12.08.2012 onwards till 31.03.2014

The Central Board of Excise and Customs (“the Board”) vide Circular No. 6/2017-Customs dated February 28, 2017 to solve the problem regarding the drawback scheme, has decided that for exports with ‘Let Export Order (“LEO”)’ from August 12, 2012 onwards till March 31, 2014, Directorate General of Foreign Trade’s (“DGFT”) e-Bank Realisation Certificate (“BRC”) would be accepted, except in case of specific intelligence or information of misuse. This shall be subject to appropriate declaration by the exporter on back of DGFT e-BRC.

The format of declaration is provided in the below mentioned link.

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2. Exemption from drawal of samples for the purpose of grant of drawback to the AEO certificate 

Earlier Circular No. 34/95-Cus dated April 6, 1995 was issued which deals with the monetary limits and frequency of drawal of sample for purposes of grant of drawback and Circular No. 57/1997-Cus dated October 31, 1997 read with Circular No. 25/2005-Cus exempting certain exporters having in house testing facilities and where the samples have earlier been drawn by Central Excise authorities, from drawal of samples for purposes of grant of drawback;

In continuation to the above Circulars, the Board vide Circular No. 5/2017 dated February 28, 2017 has decided that those exporters who have been accorded Authorized Economic Operator (“AEO”) certificate  (Tier II & Tier III) in terms of Circular No. 33/2016-Customs dated July 22, 2016 are being exempt from the requirements of drawal of samples for the purpose of grant of drawback, except in case of any specific information or intelligence.

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