CBIC clarifies on refunds of IGST paid on import in case of risky exporters

Jul 26, 2019 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Central Board of Indirect Taxes and Customs (CBIC) on July24, 2019, has clarified on refunds of IGST paid on import in case of risky exporters.

However, exporters and organisations have raised the issue of repeated opening of export containers for 100% examination related to risky exporters, under the new procedure laid down in Circular 16/2019-Customs dated June 17, 2019. Exporters have taken the plea that their cargo is getting delayed and they have to incur additional costs for carrying out re-packing.

Therefore, CBIC has decided that the requirement of 100% physical examination of each export consignment shall be gradually relaxed provided no irregularity was noticed in earlier examinations of export consignments of export entities in terms of Circular No. 16/2019-Customs.

In order to bring down the level of examination, CBIC has decided that RMCC shall take into consideration the feedback received from field formations with regard to the 100% examination conducted on exports of risk based identified entities and wherever the examination has validated the declaration made in the shipping bill, Risk Management Centre For Customs (RMCC) may review the risk assessment and gradually taper down the percentage of physical examination.

[Circular No.22/2019-Customs]


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