Circular No.ES/33/2019-20 04th May, 2019
To: Members of the Council
Sub.: Procedure for payment of MEIS benefits for obtaining No Incentive Certificate from DGFT
We would like to inform you that Air Cargo Complex (Sahar) has issued Public Notice No. 07/2019 dated 02nd May, 2019 on the above subject
The members of trade had represented to the Air Cargo Customs that the existing procedure of depositing amount of MEIS benefits is cumbersome and causes delay.
As you may be aware, MEIS benefits are required to be deposited in terms of para 3.24 (b)(i) of the Handbook of Procedures Volume-I (HoPV1) for obtaining ‘No Incentive Certificate’ from DGFT. As per Public Notice 17/2015-20 dated 3rd July, 2018 issued by DGFT, No Incentive Certificate is to be obtained in following situations of re-import of exported goods:
When the Exporter has not applied for MEIS, though he has exported under declaration on the body of shipping bill regarding his intention to claim Chapter 3 benefits; or when the MEIS has been applied for but no scrip has been issued.
When the MEIS scrips have been issued against relevant shipping bills, but have not been utilized for payment of duty.
When MEIS scrips have been utilized for payment of duty.
In case of first two situations, there is no need for depositing any amount with customs, however, the importers need to submit ‘No Incentive Certificate’ issued by the DGFT in support of their claim that no incentive have been claimed under Chapter 3 of FTP on the exported goods.
In case of “(c). When MEIS scrips have been utilized for payment of duty” the importer requires to deposit the proportionate amount of MEIS benefits along with interest under section 28AA of the Customs Act, 1962.
Now, Customs has examined this matter and had decided the following to further facilitate the trade/CBs -
Importers who need to deposit amount of MEIS benefits utilized by them for obtaining ‘No Incentive Certificate’ may approach the concerned Assessment Group where the goods are being re-imported, or have been re-imported, and submit necessary documents such as, shipping bills, MEIS calculation sheet, Interest Calculation Sheet, Copy of MEIS scrips showing rates of MEIS, etc.
The Appraiser of the Concerned Section shall verify the correctness of amount along with interest being paid and generate an Extra Duty Demand (EDD) Challan in the System on the same day.
Necessary comments regarding such deposit may also be fed into the system.
Wherever, it is not possible to generate the EDD Challan in system, the amount may be paid through Manual Challan.
Members may kindly make a note of the above procedures issued by Air Cargo Complex.