DGFT

CA to give destruction certificate for unutilized duty free imported material under para 4.49 of HBP

CA to give destruction certificate for unutilized duty free imported material from unregistered sources with pre-import condition. Requirement of destruction certificate from excise/custom authorities waived off 

Chapter 4 of the Hand Book of Procedures (HBP) (2015-20) issued by the DGFT contains provisions related to Duty Exemption and Remission Schemes.

Para 4.49 provides for the instances where cases of bonafide default in fulfillment of EO may be regularised by the Regional Authority.

Clause (g) of the Para 4.49 provides for Regularization of Bona fide default in the cases where Authorisation was issued for import of drugs from unregistered sources with pre import condition.

As per sub clause (i) for the regularisation of the import of drugs from unregistered sources issued with pre import condition the authorisation holder is required to submit documents showing consumption of full imported quantity as per norms. In case, there is shortfall in fulfilment of EO and unutilised imported quantity remains with the authorisation holder, the Authorisation holder is required either to submit a certificate from the jurisdictional Central Excise / Customs Authority certifying destruction of the unutilised imported quantity in abcaus.in their presence or proof of re-export of the same to the same supplier in-terms of para 4.43A of HBP 2015-2020.

The said Para 4.49(g)(i) of HBP 2015-20 has been now amended by a Public Notice to provide that in cases of shortfall in fulfilment of EO where unutilised imported quantity remains with the authorisation holder, the Authorisation holder shall submit a self declaration along with Chartered Accountant’s certificate regarding destruction of the unutilised duty free imported material accompanied by an affidavit-cum-indemnity bond indemnifying the Government for any harm or loss occurring due to diversion of such imported material from unregistered sources into the domestic market.

In other words, the requirement of destruction certificate  from excise/custom  authorities  for  the  unutilized  duty  free  imported material  from unregistered sources with pre-import condition has been waived off.

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