'Deemed Export Benefits Available For Supply Of Goods, Not Service Deals'

10-Jun-2013

We have exported a consignment on FOB basis. After the dispatch of the consignment, the shipping line is not delivering the bill of lading (B/L) to us on the ground that one of the forwarders has booked some container for us and has not taken delivery. What can we do now?

As per the law relating to bill of lading, the shipping company is bound to deliver the bill of lading to you upon receipt of the goods. It is a breach of faith if the shipping line takes your goods but does not give you the B/L. You can bring legal action to enforce the obligation of the shipping company. If the shipping company has any claims on you, that can be a subject matter of a separate dispute, but that matter cannot have a bearing on the obligation of the carrier or master or agent of the master or carrier to deliver you the B/L against receipt of goods for carriage to the named destination.



We are a manufacturer of wooden pallets and packing material, supplying to Special Economic Zone (SEZ) units and Export Oriented Units (EOU). We are importing sawn wood from New Zealand by paying customs duty and supplying 100 per cent to SEZ and EOU units for their exports. Is there any provision to avail/claim the duty amount?

I believe the sawn wood you import is an input for manufacture of pallets and packing material that you supply to units in SEZ or to EOU. Supplies to SEZ are treated as physical exports and so you can claim drawback of duties you pay on imported sawn wood, under Section 75 of the Customs Act, 1962 read with the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. Supplies to EOU are deemed exports and here again, you can claim deemed exports duty drawback as per the provisions in Chapter 8 of the Foreign Trade Policy (FTP). You also have the option to obtain advance authorisation or duty free import authorisation (DFIA) and import the sawn wood duty free, as per Chapter 4 of the FTP read with related Customs notifications no.96/2009-Cus and 98/2009-Cus, both dated 11.09.2009.



Do we need to take permission for import on 'lease' basis?

As per Para 2.35 of the FTP, no specific permission of the authorities is required for lease-financed capital goods.



We have supplied goods manufactured by us to a hydro power project that has been commissioned but the implementation was through award of works under international competitive tender invited by the company. Will the excise duty charged by us on plant and machinery be eligible for refund under deemed export benefits?

Deemed export benefits are not available for service contracts but are available for supply of goods required for setting up mega power projects (including specified hydel projects), subject to fulfilment of specified conditions. Where supply is already made without following specified procedures and the project is already commissioned, refund would not be admissible.

Source:-www.business-standard.com