DGFT allows ‘any Shipping Bills’ in Place of Destruction Certificate for Un-utilized drugs, Simplifies Re-export Condition [Read Notification]

The Directorate General of Foreign Trade ( DGFT ) has amended the Para 4.49(g) under Chapter 4 of the Handbook of Procedures ( HBP ), 2023 for including all types of Shipping Bills' in Place of Destruction Certificate and export condition of the re-export of un-utilised drugs. The condition of ‘proof of re-export of the same supplier in terms of Para 4.42 of HBP ’ was amended to ‘proof of re-export of the same in terms of Para 4.42 of HBP ’. Amendment in Para 4.49(g)(i) Existing Provision The Authorisation holder shall submit documents showing consumption of full imported quantity as per norms. In case, there is shortfall in fulfilment of Export Obligation and unutilized imported quantity remains with the authorisation holder, the Authorisation holder shall submit a self declaration along with the Chartered Accountant's certificate regarding destruction of the unutilized duty free imported material accompanied by an affidavit-cum-indemnity bond indemnifying the Government for any harm or loss occurring due to diversion of such imported material from unregistered sources into domestic market that may be detected in future by any authority, or proof of re-export of the same supplier in terms of Para 4.42 of HBP. Ready to Grow? Choose a Course That Fits Your Goals! Amended Provision The Authorisation holder shall submit documents showing consumption of full imported quantity as per norms. In case, there is shortfall in fulfilment of Export Obligation and unutilized imported quantity remains with the authorisation holder, the Authorisation holder shall submit a self declaration along with the Chartered Accountant's certificate regarding destruction of the unutilized duty free imported material accompanied by an affidavit-cum-indemnity bond indemnifying the Government for any harm or loss occurring due to diversion of such imported material from unregistered sources into domestic market that may be detected in future by any authority, or proof of re-export of the same in terms of Para 4.42 of HBP. Amendment in Para 4.49(g)(ii) Existing Provision Exports made under free shipping bills/under same authorisation after expiry of Export Obligation period using unutilized quantity of drugs shall also be accepted in-lieu of destruction of submission certificate as stated in para (i) provided the exact above, and technical description characteristics of the drug exported matches with that of export item described in the Advance Authorisation. However, the Authorisation holder shall pay customs duty with applicable interest to the Custom Authority on unutilized quantity imported under Advance Authorisation. The exports made outside the Export Obligation period shall only be considered for waiver of destruction certificate and not for waiver of liability of applicable duties and interest. Ready to Grow? Choose a Course That Fits Your Goals! Amended Provision Existing Provision Exports made under any shipping bills/under same authorisation after expiry of Export Obligation period using unutilized quantity of drugs shall also be accepted in-lieu of destruction of submission certificate as stated in para (i) provided the exact above, and technical description characteristics of the drug exported matches with that of export item described in the Advance Authorisation. However, the Authorisation holder shall pay customs duty with applicable interest to the Custom Authority on unutilized quantity imported under Advance Authorisation. The exports made outside the Export Obligation period shall only be considered for waiver of destruction certificate and not for waiver of liability of applicable duties and interest. Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates