One of our DTA customers wants to pay for the goods delivered by us in foreign currency. Are you allowed to do that? Why or why not?
S.No.8 in the Annexure 1 to RBI AP circular No.54 dated November 25th, 2002, states that if the concerned authorities allow EOUs, units in EPZs, EHTPs and STPs to sell goods to buyers in DTA against payment in free foreign exchange, authorised Dealers 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 sale of unutilized inputs from SEZ to EOU/EHTP/STP/BTP and state different conditions. Moreover, there are two conditions, even under, which contain different conditions but are separated by 'and', which means that both conditions must be fulfilled. The said proviso to Rule 34 was amended through notification of GSR 909 dated 19th September 2018 and while drafting the amendment, it appears not enough care was taken. I think 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, if it is sold from a SEZ unit to any EOU/EHTP/STP/BTP unit. Furthermore, 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 the IGST, but since it does not talk about other dutches, the matter is quite clear and in fact confused. I suggest that you take up the matter with the Commerce Ministry for appropriate 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 allows 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 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. With some quality and service issues, our buyer may not make the full payment and therefore, there may be short realisation of export proceeds. We are required to surrender the RoDTEP credit in proportion to the shortfall in realisation of export proceeds. How can I tell customs to reduce the credit limit for me?
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