OFFICE OF THE   COMMISSIONER  OF CUSTOM
SCUSTOM HOUSE: NEW HARBOUR ESTATE: TUTICORIN-628 004.

C.No: VIII/20/33/2007 DBKS                                                                                                            13.06.2008

Circular

                        Attention is invited to Public Notice No. 16/2000 regarding payment of drawback under EDI system when price is declared on CIF/C&F basis.                       

2.                     It is observed that it is highly improbable that the exporter would not be aware of the freight that is required to be paid by him for the export goods even at the time of presenting the goods for shipment. It has, therefore, been decided that the exporter must declare the actual freight paid or payable by him on the shipping bill, or when the goods are presented for examination. This declaration of freight must reflect the freight charges borne by the exporter irrespective of the amount received by the shipping lines or by the consolidating agents or any other person engaged in the shipment of the goods. In the exceptional cases, when the exporter is not able to ascertain the actual freight payable by him at the time of export, the exporter must file a declaration of the freight payable for the consignment on the basis of the standard published freight schedule. However, the exporter should review each case of shipment after export has taken place and if the freight borne by him is higher than the one declared in the shipping bill, he would immediately on his own pay back to the customs  

the excess amount of drawback claimed/received or any other export incentives claimed thereon.               

3.                     Any mis-declaration of freight paid or payable which results in loss of revenue by way of excess drawback payment is liable to be proceeded against under the Customs Act, 1962.  However, in cases where the freight actually paid is less than the one declared, no supplementary claims shall be entertained.                       

4.                     Therefore, all exporters claiming drawback are required to file the enclosed declaration. The officers at examination points should ensure that the declaration is filed and necessary endorsement is made in the examination report of the shipping Bill.                                                                                             

                                                                                                                                                                                                                                           (P.SUBRAMANIAN)
                                                                                     ADDITIONAL COMMISSIONER