Relaxation in provision of submission of 'Bill of Export' as an evidence of export obligation discharge for supplies made to SEZ units in case of Advance Authorization

Circular No.ES/31/2022-23                                                                   8^th June, 2022       

To: Members of the Council    

Sub:  Relaxation in provision of submission of 'Bill of Export' as an evidence of export obligation discharge for supplies made to SEZ units in case of Advance Authorization 

Dear Member,            

We would like to inform you that DGFT vide Policy Circular No. 39/2015-20 dated 7^th June, 2022 on the above subject.   

As you may be aware, one of the documentary requirements prescribed under ‘Guidelines for Applicants’ of ANF-4F (Application for Redemption) in case of supplies made to SEZ units under Advance Authorisation, states as follows:

“…EP copy of the shipping bill(s) containing details of shipment effected or bill of export in case of export to SEZ…”

The above stated requirement of submitting ‘Bill of Export’ for supplies made to SEZ is prescribed under the Foreign Trade Policy. 

This requirement was challenged by several exporters before various High courts in the country on the ground of hardships suffered by them due to non-availability of this provision for the period covered upto FTP 2009-14. In most of the cases, Hon’ble Courts have granted relief to the Advance Authorisation holders.

Requirement of submitting ‘Bill of Export’ for supplies made to SEZ (prescribed under FTP) was challenged by exporters before various High courts in the country since they suffered hardships due to non-availability of this provision for the period covered up to FTP 2009-14. Hon’ble Courts have granted relief to the AA holders in most of the cases.  

Accordingly, DGFT has examined this issue and in terms of Para 2.58 of FTP 2015-2020 (extended up to September 30, 2022) and has decided –   

• To relax this condition of requirement of submission of ‘Bill of Export’ in exports made to SEZ units under AA, for all such supplies made prior to 1st April, 2015.  

• For discharge of export obligation under AA for supplies made to SEZ units prior to 1st April, 2015, exporters can submit the following corroborative evidence in lieu of ‘Bill of Exports’:  

1. ARE-I form duly attested by jurisdictional Central Excise/GST Authorities of AA holder. 
2. Evidence of receipt of the supplies by the recipient in the SEZ.  
3. Evidence of payment made by SEZ unit to the AA holder. 

Members may kindly make a note of the above.  

Thanking you,                        

Yours faithfully,                         

S. BALARAJU            
EXECUTIVE DIRECTOR