Monitoring of realization of export proceeds for shipping bills for which drawback has been claimed and disbursed

Circular No. ES/4/2022-23 4^th April, 2022

VERY IMPORTANT

To: Members of the Council

Sub: Monitoring of realization of export proceeds for shipping bills for which drawback has been claimed and disbursed

Dear Member,

JNCH has issued Public Notice No. 20/2022 dated 25^th March, 2022 on the above subject.

As you are aware, RBI-BRC Module is effective for all S/Bills for which LEO (Let Export Order) date is on or after 1^st April, 2014.

As per the Foreign Exchange Management Act,1999, realization of export proceeds should happen within a period of 9 months from the date of export, unless this period is extended by RBI.

In cases where the export proceeds have not been realized with the given period, the drawback disbursed becomes recoverable under Rule 18 of the Customs, Central Excise Duties Drawback Rules, 2017 (Rule 16A of the Customs, Central Excise Duties & Service Tax Drawback Rules 1995 prior to 1.10.2017) along with applicable interest as per Section 75A(2) of the Customs Act.

Analysis of the data available on RBI-BRC module indicates that very large number of exporters/ S/Bills, export proceeds have not been realized even after completion of mandated period. As a result, in all such cases, the drawback amount relatable to such exports is liable to be recovered along with applicable interest in terms of the afore-cited provisions.

In this connection, JNCH has informed/advised the following-

Details of Shipping Bills for the period from 1^st April, 2014 to 31^st March, 2018 where export proceeds have not been realized or have been partially realized, is being made available on http://www.jawaharcustoms.gov.in or click on the given link-(BRC-14-15) (In case you are unable to download the file, please copy & paste the link on the browser- https://tinyurl.com/kmhnd36c).
Exporters need to follow up with their Authorized Dealer Banks for updating the export proceeds realization details in the respective bank’s EDPMS so that the data is transmitted to Customs for reconciliation.
A functionality has also been made available on the ICEGATE Portal where exporters can themselves verify export proceeds realization details in respect of individual export shipment and raise queries related to rectification required if any.
An advisory detailing the process of such verification/rectification of S/Bill wise export realization details is available on the Icegate Portal (copy is annexed to Public Notice No. 20/2022 as ‘Annexure A’).
In cases where export proceeds have been realized, details of such realization may be updated in the EDPMS through their Authorized Dealer Bank for reconciliation failing which appropriate action for recovery of ineligible drawback disbursed along with interest shall be initiated by JNCH.
Further, as prescribed in CBIC Circular No. 33/2019 dated 19^th September in cases where the short realization of export sale proceeds is due to bank charges deducted by foreign banks or agency commission paid to agents abroad for securing export contracts, exporters are required to produce documentary evidence such as export invoice, bank’s confirmation regarding foreign bank charges etc. to justify such deductions.