Prevention of use of non-genuine transferable duty credit scrips or DFIA (Duty Free Import Authorizations)
In order to maintain a balance between common prudence, trade facilitation and enforcement and to curb the use of non-genuine transferable duty credit scrips or duty free import authorizations by unscrupulous persons, CBEC vide Circular No. 12/2016-CUS, dated March 28, 2016 has given the following instructions which govern usage of such scrips and authorizations:
· The issuing authority specifies a port/ Custom House where the freely transferable varieties of reward are to be registered on presentation of the scrip/ DFIA along with their annexure/condition sheet which involves ruling out the existence of any alerts that could cause delay in such use.
· Field formations are to verify the genuineness of the duty credit scrips/ DFIA from the issuing authority through fast and reliable means. This verification is not to be done by Custom Houses when scrip/DFIA is simultaneously received online through electronic transmission from DGFT.
· Where export of goods under specific shipping bills/ bills of export (not filed electronically) shown in annexure/ condition sheet then the backing shipping bills needs to be verified for genuineness. However, if the shipping bills were filed electronically but scrip was not received simultaneously then such verification will be restricted to not more than 5% randomly selected scrips with only online verification being carried out of EDI Shipping Bills.
· In certain situations pertaining to reward scrips the Custom Houses are not required to verify genuineness of the scrip and/or its backing shipping bills (if any). Such situations require only check of absence of alert before registration. Registration, in such cases, should be ensured within 3 hours of presentation of reward scrip. In other cases of registration of reward scrips, a norm of registration within one day, excluding time taken if any at end of the Issuing Authority, should be adopted by Custom Houses.
· Reward duty scrips for exports registered with DC, SEZ with physical release advice, prior verification of genuineness to continue until integration with Customs EDI is complete.
· Verifications of reward duty credit scrips leading to non-acceptance and/or undertaking of detailed/complete checks before registration should be conducted by field formations only when there is alert or intelligence suggesting misuse or requirement of an investigation only after recording the reasons in writing for the specific individual cases.
· Checks prescribed in Circular No. 10/2013-Cus are to continue in respect of remission duty scrip against post export EPCG duty credit scheme
· For transferable DFIA, prior to registration, it is to be verified that the details of exports given along with the DFIA matches the record of exports and is genuine.
· The scrip/authorization shall be presented before the proper officer at the time of clearance for debit. This is for preventing non-genuine usage for example, arising from difference between scrip/DFIA particularsvis a vis particulars shown on bill of entry, or from scrip of one scheme getting used for clearance under another scheme, etc. The absence of dematerialized system for recording issuance and transfer of scrips/DFIA also necessitates presentation of the scrip for ensuring that use is by a genuine transferee holder-importer.