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17/2012-Cus, Dated: 05/07/2012

Regarding verification of genuineness, of duty credit scrips issued under Chapter 3 of FTP, before registration

Circular No. 17/2012-Customs

F.No.605/12/2012-DBK
Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise and Customs

New Delhi dated the 5^th July,2012

To
All Chief Commissioners of Customs
All Chief Commissioners of Customs & Central Excise/ Central Excise
All Director Generals under CBEC,
All Commissioners of Customs, Customs (Preventive)
All Commissioners of Customs & Central Excise/ Central Excise

Madam/Sir,

Sub: Verification of genuineness, of duty credit scrips issued under Chapter 3 of FTP, before registration

Attention is drawn to para 2 (e) of Circular No. 5/2010-Customs dated 16.03.2010, which reads - “ As regards the duty credit scrips issued under Chapter 3 of FTP, the verification of genuineness of scrips in terms of Para 3.11.3 of the HBP v.1 shall be done before allowing registration of suchscrips. Further, the Commissioner may cause random verification of the shipping bills based on which the said duty credit scrip has been issued to ascertain the genuineness of such shipping bills. A quarterly report on the outcome of the said verification may be forwarded to the Board, which should include inter alia the details of the discrepancies noticed during the verification and the measures taken to redress such discrepancies.  This procedure will be reviewed once online transmission of the duty credit scrips issued under Chapter 3 of FTP is operationalized”.

2.  The Annual Supplement 2012-13 (FTP for 2009-14) issued on 5^th June 2012 has not retained the provision (“before registration, authorities shall verify genuineness of duty credit scrips, from RA concerned, until EDI system of message exchange is put in place”) under para 3.11.3 of the HBP, Vol. 1.

3.  The matter was reviewed by the Board. Field formations have reported that they do signature verification of issuing authority, they cross-check the particulars of the scrip with its issuance particulars available on the official website of the concerned Regional Authority (RA) of the DGFT and place in the file a copy of the print-out of details of scrip taken from the said official website, some also use fax or letter confirmation from the RA when required, and they check alerts, etc before registering the scrip. Where scrip details are not available on the official website of RA, say for example in the case of manually issued scrips or for any other reason, field formations write a letter to RA and take steps to register such scrip when written confirmation is received.

4.         Since, EDI system of message exchange has not been put in place and online transmission of duly validated duty credit scrips is not operational, it has been decided that even while the words and figures “in terms of Para 3.11.3 of the HBP v.1” shall stand deleted from first sentence of para 2(e) of Circular No.5/2010-Customs, the verification of genuineness of scrips shall continue to be done as before prior to registration of suchscrips. No other aspect with respect to para (e) of Circular No.5/2010-Customs has undergone change.

5.           These instructions should be brought to the notice of all concerned by way of issuance of instructions/trade notice. Difficulty faced, if any, may be brought to the notice of the Board.

Yours faithfully,

(Suresh Kumar)
Director-Drawback
Telefax: 011-23360581

Opinion

The Annual Supplement 2012-13 (FTP for 2009-14) issued on 5th June 2012 has not hold the provision “before registration, authorities shall verify genuineness of duty credit scrips, from RA concerned, until EDI system of message exchange is put in place”. Since, EDI system of message exchange has not been put in place and online transmission of duly validated duty credit scrips is not operational, the verification of genuineness of scrips shall continue to be done as before prior to registration of such scrips.

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