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Non-disbursal of Drawback due to non updation / reflection of Bank realization particulars in RBI-BRC module of ICES- Meeting on 27.07.2018

Circular No. ES/ 124/2018-19                                                                                                July 17, 2018

To : Members of the Council

Sub:- Non-disbursal of Drawback due to non updation / reflection of Bank realization particulars in RBI-BRC module of ICES- Meeting on 27.07.2018

Dear Member,

The Council is pleased to inform you that the Commissioner of Customs (Preventive), Patna is holding a Meeting on 27.07.2018 at 15.00 Hrs. in the Conference Hall, 4th Floor, Central Revenue Building, Bir Chand Patel Path, Patna to discuss matters relating to the above issues.

One of the key challenges faced by our members exporting to Nepal is the issue of Delay of Drawback claims through Land Customs Stations (LCSs) Raxaul and Jogbani. The Council has been taking up the matter regularly with Patna Customs and Land Customs Stations for Prompt disbursal of drawback claims to our members.

The Council has now received a letter from the Office of the Commissioner of Customs (Preventive), Patna informing the following -

  • Disbursal of Drawback claims for of exports made to Nepal is governed by Notification No.208-Cus dated 01.10.1977 as amended, which interalia provides that drawback has to be sanctioned only after realisation of export proceeds against invoices mentioned in the Shipping Bills.
  • Under Patna Customs (P) Commissionerate, exports under drawback shipping bills are allowed through LCS Raxaul & LCS Jogbani only and both the LCSs are EDI enabled.
  • Therefore, the correctness of BRC submitted by the exporter/CHA to Customs for sanction of drawback claims is verified by the officer on ICES.
  • In this context, Instruction issued under F.No. 609/59/2012-DBK dated 27.11.2015 by CBEC mandates to use the online RBI-BRC module for monitoring of realisation of export proceeds in EDI for all shipping bills where LEO was granted on or after 01.04.2014.
  • On verification of FOB realisation data in ICES-RBI report vis-a-vis data derived from DGFT e-BRC, instances have come to notice that in many cases FOB realization is shown as 'zero' in ICES-RBI report, while FOB is shown fully realized in DGFT site report.
  • Under above circumstances, LCS Raxaul & LCS Jogbani are facing constraint in timely sanction of drawback to exporter as ICES-RBI report showing no Bank realisation while FOB is shown fully realized in DGFT site report.
  • On analyzing the issue, it has been noticed that though exporters are submitting e-BRC downloaded from DGFT website, but the same BRC is not reflected in RBI's EDPMS.
  • This may be due to the reason that exporter's Banks are not uploading the Bank realization data in RBI's EDPMS.
  • Reference is invited to RBI Circular No. 101 dated 14.02.214 & 109 dated: 28.02.2014 wherein AD Banks have been instructed to utilize the RBI's EDPMS to report all export related returns through the single platform.

We request all concerned members who have submitted DGFT e-BRC but their FOB realizations are not reflecting/wrongly reflecting in ICES-RBI report to send your representatives to attend the Meeting on the scheduled date and time. This meeting will be attended with the representatives of RBI and their Authorised Dealers (Banks) to discuss on the above issue, so that drawback claims can be sanctioned by LCS Raxaul & LCS Jogbani in an expeditious manner.

In case, you have any pending issues with Patna Customs including Drawback claims, you may send us the same immediately in the below format for including in our Agenda points.

Company Name/ IEC No.

Shipping bill No

Shipping bill date

Drawback Amount (Rs.)

Name of Port / LCS

 

 

 

 

 

 

 

 

 

 

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR

 

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