Customs Shipping Bill Post Export Conversion Regulations 2022

The Central Board of Indirect Taxes and Customs (CBIC) has notified the Shipping Bill (Post export conversion about the instrument-based scheme) Regulations, 2022 vide a Notification No. 11/2022-Customs (N.T.) dated 22nd February 2022. This Regulation lays down guidelines for converting Shipping Bills or Bill of Export. This has been announced as part of the continued focus on the trade facilitation measure to achieve the ‘Turant’ customs objective. These Regulations 2022 will apply prospectively from 22nd February 2022.

Synopsis of Regulations

These regulations provide manner, time limit, conditions, and restrictions for applying for post export conversion of Shipping Bill.

Note on the shipping bill.

To obtain customs clearance, the exporter is required to prepare the shipping bill. On receipt of the shipping bill, the customs authority conducts an assessment/examination. Once everything is in order, the customs authority issues ‘Let Export Order’ on the shipping bill duly signed and sealed by the customs officers. There are different types of shipping bills, and the same are differentiated based on the color codes assigned. Know more about the Shipping Bill and Revised Shipping Bill Format.

Conversion of the Shipping Bill

Conversion of the Shipping Bill or Bill of Export post export to claim fiscal incentives in the form of duty refund or credit scrip etc., has been a challenge with time-consuming litigation. Hence the CBIC announced Customs Shipping Bill Post Export Conversion Regulations 2022 as a trade facilitation measure.

The notification of this Regulation will hopefully streamline the conversion process and reduce litigation.
This will enable the trade to reduce its compliance cost and ensure that benefits as applicable in law accrue on merit.

Post export conversion of Shipping Bill

CBIC vide this Customs Shipping Bill Post Export Conversion Regulations 2022 notified that Conversion” means an amendment of the declaration made in the shipping bill or bill of export to any other one or more instrument-based scheme after the export goods have been exported. All requests for amendments in the shipping bills are divided into two categories:-

Amendment /conversion in the shipping bill before allowing Let Export Order (LEO).
Amendment/ conversion in the shipping bill after allowing Let Export Order (LEO), i.e., Post Shipment Amendment.

Note: Instrument-based scheme means a scheme involving utilization of an instrument referred to in explanation 1 to sub-section (1) of section 28AAA of the Custom Act

Key Features of the Regulation

Customs Shipping Bill Post Export Conversion Regulations 2022 Enables conversion, among other things, relates to the amendment of the declaration made in the Shipping Bill or Bill of Export to any other one or more instrument-based schemes after the goods have been exported, e.g., Drawback, Refund of Duties and Taxes on Exported Products (RoDTEP), export incentive schemes notified under the Foreign Trade Policy 2015-20, etc.

Applicability of Regulation

Customs Shipping Bill Post Export Conversion Regulations 2022 shall apply to shipping bills or bills of export filed on or after the publication date of these regulations in the Official Gazette.

The time limit for applying for post-export conversion of Shipping Bill

The application for conversion shall be filed in writing within one year from the date of order for clearance of goods under sub-section (1) of section 51 or section 69 of the Customs Act, 1962

The jurisdictional Commissioner of Customs, having regard to the circumstance under which the exporter was prevented from applying within one year, may decide to extend by a further period of six months
The jurisdictional Chief Commissioner of Customs, having regard to the circumstances under which the exporter was prevented from applying within one year and six months, may decide to extend the by a further period of six months

To compute the period of one, the period during which a court or tribunal granted a stay shall be excluded.

Section 51 of the Customs Act, 1962 - Clearance of goods for exportation

According to section 51 (sub-section 1 of the Customs Act), If the proper officer is satisfied that any goods entered for export are not prohibited goods. The exporter has paid the duty, if any, assessed thereon, and any charges payable in respect of the same, and the proper officer may make an order permitting clearance and loading of the goods for exportation:

Section 69 - Clearance of warehoused goods for export

Any warehoused goods may be exported to a place outside India without payment of import duty if -

A shipping bill or a bill of the export or the form as prescribed under section 84 has been presented in respect of such goods.
The export duty, fines, and penalties for such goods have been paid.
The proper officer has been ordered to certify such goods for 4 [export].

Procedure to apply for post export conversion of Shipping Bill

The application needs to be filed with the jurisdictional Commissioner of Customs at the port of export within one year from the date of clearance, i.e., Let export order given by the Customs authority (extendable by six months respectively by the jurisdictional Commissioner of Customs and Chief Commissioner of Customs on merit).

Processing of Application for post export conversion of Shipping Bill

The Jurisdictional Commissioner of Customs will take a Decision on the application for the Conversion of Shipping Bill, subject to the following;

Based on documentary evidence, which was in existence at the time the goods were exported
Paying a fee following Levy of Fees (Customs Documents) Regulations, 1970.
Subject to conditions and restrictions provided in regulation 4 of this regulation.

Prescribed Date for Processing of Application

As mentioned above, The jurisdictional Commissioner of Customs shall decide every application for conversion within thirty days from the date it is filed.

Conditions and restrictions for conversion of Shipping Bill

Decision on the application to be taken possibly within 30 days from the date of filing, subject to documentary evidence existing at the time of export and payment of applicable fees apart from other conditions which among other things include the following:

No benefit is availed of the instrument-based scheme from which conversion is being sought; Prescribed needs and obligations of the instrument for which modification is being sought are met;
No non-compliance or contravention relating to the filing of Shipping Bill or Bill of Export or otherwise, including investigations initiated under any law;
Shipping Bill or Bill of Export for which conversion is sought relates to an instrument-based scheme.

Click here to get the official notification of CBIC.

Import Export Code

The Import Export Code is a primary document that is necessary for commencing Import-export activities. For exporting or importing any goods or services the IE code is to be obtained.IEC has numerous benefits for the growth of the business. Certainly, you cannot ignore the necessity of IE code registration as it is mandatory. You can apply for an Import Export code through IndiaFilings and obtain it within 6 to 7 days.