One of our DTA customers wants to pay for the goods that are delivered by us in foreign currency. Is it allowed? Why or why not?
S.No.8 in theannexure 1 to RBI AP circular no.54 dated November 25th, 2002, says that if the concerned authorities allow EOUs, un•its in EPZs, EHTPs and STPs to sell goods to buyers in DTA against payment in free foreign exchange, authorised dealer may sell foreign exchange to the buyers of such goods in DTA without prior approval of the Reserve Bank.
We refer to the proviso to Rule 34 of the SEZ rules 2006, where and are separated by 'or' but both refer to sales of unutilized inputs from SEZ to EOU/EHTP/STP/BTP and state different conditions. Moreover, even under, there are two conditions and that carry different conditions but are separated by 'and', which means that both conditions must be fulfilled. The said Proviso to Rule 34 was amended by notification GSR 909 dated 19th September 2018 and while drafting the amendment, it appears not enough care was taken. My opinion is that the option at should be only for sale from one SEZ unit to another SEZ unit, whereas the option at should be for sale from a SEZ unit to any EOU/EHTP/STP/BTP unit. Further, the provisions at and should be read as options. The option at should be used where the clearance is effected under notification 52/2003-Cus dated 31 March 2003. The option at can come into play when goods are cleared without the benefit of any notification exemplifying IGST, but since it does not talk about other duties, the matter is quite clear and, in fact, confusing. I suggest that you take up the matter with the Commerce Ministry for suitable amendments to the above referred provisions.
We refer to SION C-819 for export of stainless steel cutlery with or without handle irrespective of what material the handle may have been made of. We want to know whether the CIF value limit of 5 per cent FOB value allowed for import of miscellaneous items against this entry refers to the FOB value of imports or FOB value exports.
In my opinion, it refers to the FOB value of exports but I cannot quote any specific provision to support my opinion.
We had got credit of RoDTEP benefit in our electronic duty credit ledger, immediately after exports. Due to some quality and service issues, ouracheteur may not make the full payment, and therefore, there may be short realisation of export proceeds. We are asked to surrender the RoDTEP credit in proportion to the shortfall in realisation of export proceeds. How can I tell customs to reduce the amount of credit made available to me?
Business Standard welcomes reader's questions related to GST, export and import issues.