This Tax Alert summarizes a recent Notification1 issued by Central Board of Indirect Taxes and Customs (CBIC) notifying the Shipping Bill (Post export conversion in relation to instrument based scheme) Regulations, 2022.
Instrument-based scheme means a scheme involving utilization of instrument
referred to in explanation 1 to section 28AAA (1) of the Customs Act, 1962.
The application for conversion shall be filed within a period of one year from
the date of order for clearance of goods. However, the jurisdictional
Commissioner/ Chief Commissioner may extend the said period in certain cases.
The jurisdictional Commissioner may authorize conversion of shipping bill basis
the documentary evidence existing at the time of export of goods and on payment
of a fee in accordance with Levy of fees (Customs Documents) Regulations,1970.
The conversion of shipping bill and bill of export shall be subject to the
following conditions and restrictions:
- Fulfilment of all conditions of the relevant
instrument-based scheme.
- Exporter has not availed benefit of the scheme
from which conversion is being sought.
- All conditions relating to presentation of
shipping bill or bill of export in the Customs Automated System has been
complied with.
- No contravention has been noticed or investigation
initiated against the exporter in respect of such exports.
- The shipping bill or bill of export of which the
conversion is sought is one that had been filed in relation to instrument
based scheme.
Comments:
- In the past, exporters had approached Courts for
claiming benefit of the schemes that were either not claimed in the
shipping bill or erroneously reported under a different scheme.
- The notification may facilitate rectification of the
shipping bill by converting it for an instrument-based scheme and thereby
eliminate a litigation route for exporter.
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