MEIS SCHEME – DON’T FORGET TO PUT “Y” IN ALL LINE ITEMS – SMALL ERROR BUT BIG HEADACHE !!!

Exporter has informed Customs Broker to file Shipping Bill under MEIS Scheme. The customs Broker while submitting Shipping bills instead of entering 'Y' for each line item, selected 'Y' only for the first line item and did not make any selection for remaining items. Later Shipper approached DGFT for correction. DGFT’s contention is that they cannot be blamed for the lapse committed by the Shipper/Customs Broker and not in position to amend SB and release incentive scrip. Suggest a solution?

Shipper has filed writ petition in High Court. This case is absolutely similar  like Pasha International Vs Commissioner of Customs, Tuticorin and two others. Pasha International case has become landmark judgement in MEIS claim matter and so far referred in 11 such cases in various legal forums.

The exporter ought not to suffer for the inadvertent mistake committed by him/Customs Broker. When the filing was done manually, Section 149 of Customs Act provides for effecting corrections. Now, there has been a shift from the manual system to EDI System. In the EDI System, approval is also automated.

Since the Shipper had opted only for 'Yes', as far as the first line item is concerned and did not opt for the remaining items, by system default, for the remaining items the system opted 'No' automatically.

This was a sheer inadvertent mistake committed by the Customs Broker. The Shipper  had actually intended to claim the benefit under the aforesaid Scheme. The Shipper  deserves to be given one more opportunity to set right things.

The Shipper is permitted to make a formal request to the customs. The Customs Department has to issue No Objection Certificate to enable the shipper to avail the benefit and also instruct NSDL to transmit all the relevant SB data for amendment.

ATC TIRES PRIVATE LIMITED VERSUS ZONAL ADDITIONAL DGFT, DIRECTOR GENERAL OF FOREIGN TRADE, COMMISSIONER OF CUSTOMS, UNION OF INDIA, THE DEVELOPMENT COMMISSIONER, MEPZ,  MADRAS HIGH COURT decided on 11 September 2020

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