• DGFT insisting on Bill of Export for supply to SEZ

Dear sir,

We had supplied material to NSEZ filing  documents like ARE 1 but did not file the Bill of export. We wish to setoff this supply to NSEZ against our EPCG license fulfillment. Though we have recd ARE1 duly stamped from buyer with stamp of concerned Custom officials, DGFT is not accepting the ARE1 and certificate from Bank that payment was recd as proof for fulfilment of obligation but is insisting on Bill of Export.

Please advise as the amount of supply is Rs 30 lacs approx.
Asked 1 month ago in Business Law from New Delhi, Delhi
1)you have certifcate from bank that payment was received in respect of goods exported by you 

2) you have ARE 1 duly stamped by customs . if DGFT is not accepting the same as proof of fulfillment of export obligation file writ petition in delhi HC to direct DGFT to accept the same as fulfillment of export obligations 
Ajay Sethi
Advocate, Mumbai
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Baramati Agro Limited, Maharashtra
F.No. 1/36/218/36/
AM-12/EPCG-1
a.  3130002719 dated 01.10.2007
b.  3130002727
dated 04.10.2007
c.  3130002728
dated 04.10.2007
(a)        Acceptance of excise attested proof of exports and ARE-I for EO fulfillment;
(b)         Condonation of procedural lapse of not mentioning of EPCG Authorization number and date on shipping bills of the Third party.
The firm have made exports through third party and all the shipping Bills show their name as supporting manufacturer. The firm claims that corresponding ARE-I and excise attested proof of exports showing Shipping Bill Numbers are also available with them.  The Committee, therefore, decided to accept excise attested proof of exports/ ARE-I and recommended to DG to condone the procedural lapse of not mentioning the EPCG Authorizations details on shipping bills of the third party if there is other corroborative evidence.  The RA may dispose of the request of the firm after verification of the aforesaid documents as per Policy Circular No. 7 dated 11.07.2002. DG has approved the recommendation of the Committee
Ajay Sethi
Advocate, Mumbai
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List of Documents to be filed with Refund claim for Central Excise, Customs and Service Tax Refund/ Rebate Claims*  Central Excise
For Rebate of duty paid on goods exported. :  As per Rule 18 of CER 2002 and Notification No.19/2004 CE (NT)
dated 6.9.2004.:

1. A request on the letterhead of the exporter containing claim of
rebate, ARE-1 numbers and dates, corresponding invoice numbers
and dates, amount of rebate on each ARE-1 and its calculations.
2. Original copy of ARE-1.
3. Invoice issued under Rule 11 of CER, 2002
4. Self attested copy of Shipping Bill (EP copy) and Bill of lading/ Airway
Bill.
5. Proof of duty payment.
6. Disclaimer certificate. (in case claimant is other than exporter)
5. Any other document in support of the refund claim

Thus you may verify if you have attached all these documents to claim refund  and confirm

You cannot file the bill of export now for supplies already made. There is no provision allowing that. Secondly, you cannot get incentives such as duty drawback for supplies made to SEZ without filing a bill of export.
Once the goods have gone through without a bill of export, it is not possible for Customs to follow the disciplines required for assessment of the bill of export at a later stage.
T Kalaiselvan
Advocate, Vellore
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Request advise if there has been any such precedent or judgement in similar matter.

You must look for the citations in this regard yourself or by engaging the services of an advocate privately.
T Kalaiselvan
Advocate, Vellore
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127 Consultations
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