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Pending IGST Refund, Duty Drawback, Advance License & EPCG

Pending IGST Refund, Duty Drawback, Advance License & EPCG

In this blog, we will discuss the important public notice issued by JNPT Port. These notices are related to Duty Drawback, IGST Refund, Advance License and EPCG. So for those who have ever exported from JNPT port or have registered their advance license or EPCG at JNPT port, this blog is very important for them.
And for those who have not exported from JNPT, the concept of this blog is very important because similar notices would have been issued by other ports as well.
It is very important to understand the notice because if you do not know about it then you may get into big trouble in the future. So let’s get started.

IGST Refund

Everyone knows that we receive an IGST refund from customs when we export after paying the IGST.
Now it’s possible that you didn’t get a refund for the shipping bill because of some issues/errors, and because of a lot of shipments, it was not even noticed.
For all these reasons, JNPT Port has issued public notice 63 and 64. It was released on October 21, 2022. In this public notice, they had issued a list s/b wise whose installment refunds have not been processed yet.
This list is more than 50,000 shipping bills. Your company name, IEC number, error code are also given.
So all the exporters should check this public notice and you can use it for an audit also. Just to check whether IGST refund is pending for any of your shipping bills.
Please find the circular for reference:
PN 64 Dt. 21st Oct 22 – https://www.jawaharcustoms.gov.in/pdf/PN-2022/annx-a-pn-64-2022.pdf

Pending Duty Drawback

If your duty drawback amount is not coming then there can be many reasons for it. One of the reasons may be that your PFMS (Public Financial Management System) is not updated on JNPT port.

PFMS not valid at JNPT port means your AD code/IFSC code is not registered properly.
Therefore, in public notice no. 122 d. 23.09.2020, JNPT has issued a list of thousands of shipping bills whose refund has not been processed as PFMS is not valid.

Please find the circular for reference:
PN 122 Dt. 23.09.2020 – https://www.jawaharcustoms.gov.in/pdf/PN-2020/PN-122-2020.pdf
PN 63 Dt. 21st Oct 22 – https://www.jawaharcustoms.gov.in/pdf/PN-2022/annx-a-pn-63-2022.pdf

Important Notice wrt Duty Drawback

Customs credits the duty drawback amount to your account within 30 to 45 days of filing the shipping bill. Before giving this amount to you, the customs does not ask you whether you have realized the foreign currency or not.
But it is necessary for the customs to keep track of the fact that the drawback you have given against the export is that the money has not come from abroad.
And if you have not received money from abroad, then you have to return that drawback amount along with interest.
Now many people do not know this because of this reason Customs has made a rule that every 6 months the exporter has to submit a NIL/negative certificate/e-BRC, In which it will be written that we do not have any foreign currency pending to come from outside.
Since many exporters do not voluntarily do this process, Therefore, the Customs themselves have compared the foreign exchange amount of SB and the actual amount in RBI’s database, A list has been released containing the names of all those exporters whose foreign exchange has not been realized or has been received the less amount.
A Public Notice on this subject was issued by JNPT in 2020 i.e. PN 137 DT. 21.10.2020 and then in 2022 i.e. PN 20 DT. 25 March 2022.
This can also be a reason for pending drawback and if you are getting drawback right now then it may stop in future if you do not comply with it.
Please find the circular for reference:
PN 137 Dt. 21.10.2020 – https://www.jawaharcustoms.gov.in/pdf/PN-2020/PN-137-2020.pdf
PN 20 Dt. 25th March 2022 – https://www.jawaharcustoms.gov.in/pdf/PN-2022/PN-20-2022.pdf

We have also made a detailed video on this topic, please check the same

Pending Bond/BG Cancellation for Advance License

Public notice 15 d. On 17.02.2023, JNPT has given the list of all those Advance Licenses which were registered at JNPT Port but till date they have not received their redemption letter and the process of Bond/BG cancellation is pending.
This list needs to be taken very seriously because if your company is showing some pendency then customs will not allow you to register new license.
The list also has more than 15000 advance license pending for bond/BG cancellation process at JNPT port.
Please find the circular for reference:
Public Notice 15 Dt. 17.02.2023 – https://www.jawaharcustoms.gov.in/pdf/PN-2023/PN-15-2023.pdf

Pending Bond/BG Cancellation for EPCG License

Similar to advance license, in Public Notice 16, dated 16.02.2023, JNPT has given the list of all EPCG Licenses which are registered at JNPT port but till date they have not received their redemption letter and the process of bond/BG cancellation is pending.
Please find the circular for reference:
Public Notice 16 Dt. 16.02.2023 – https://www.jawaharcustoms.gov.in/pdf/PN-2023/PN-16-2023.pdf

Who are we & How can we help you

We at Afleo Group, are a team of DGFT & Customs Experts having a rich experience of 10+ Years in Exim Consultancy & International Logistics [Freight Forwarding]. With our vast knowledge and experience in this field, we can help you with all your requirements in a fast & efficient manner.
So whether you have Drawback pending, or IGST refund pending, or Advance/EPCG license case pending with DGFT or Customs, we can serve you for speedy resolution of pending cases.
We are well-equipped to handle the logistics of global trade with efficiency and expertise. Let us handle the logistics while you focus on growing your business. Contact us today to learn more about how we can help you streamline your supply chain and increase your bottom line. We are dedicated to providing efficient and cost-effective logistics services to help our clients.
If you have any doubt please get in touch with us.