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Circular No. 49/2016-Cus.
F. No. 605/17/2013-DBK
Government of India
Ministry of Finance, Department of Revenue
Drawback Division
…..
New Delhi, 27
th
October, 2016
To

Principal Chief Commissioners / Chief Commissioners
Principal Directors General / Directors General
Principal Commissioners / Commissioners
(All under CBEC)

Sub: Transferability of goods imported/procured by debiting duty in SFIS scrips– reg.

The undersigned is directed to say that transferability of goods imported/procured by debiting
duty in SFIS scrips was considered by the Board in the context of reconciling the Department of
Commerce Notification No. 30/2009-2014 dated 1.8.2013 that amended FTP 2009-14 to provide that
goods imported/procured under SFIS can be alienated on completion of 3 years from the date of
import/procurement, the judgment dated 23.5.2016 of Hon’ble Delhi High Court in Writ Petition (C) No.
1809/2016 in the matter of Greatship (India) L td. and the Notification nos. 92/2004-Cus and
91/2009-Cus or 34/2006-CE. The Board has also consulted with the DGFT. It is clarified that –

(a) The goods imported/procured utilizing SFIS Scrip issued in terms of FTP 2009-14 may be
sold/transferred on completion of 3 years from the date of clearance of import/
procurement in terms of the Department of Commerce notification no. 30 dated 1.8.2013.

(b) In the light of the Hon’ble High Court’s order and absence of specific amendment by Dept. of
Commerce to the FTP 2004-09, requests for sale/transfer of goods imported/procured
utilizing SFIS scrip issued in terms of FTP 2004-09 shall be considered by DGFT in terms of
para 2.5 of FTP 2004-09 on merits keeping in view the spirit of the Hon’ble High Court’s
order to the effect that transferability of goods that have completed 3 years is not deniable
only on the ground that imports were in terms of the FTP 2004-09.

(c) In view of DGFT conveying interpretation under para 2.3 of FTP 2004-09/2009-14 that the
provision of transferability after 3 years is not applicable to consumables (including food
items and alcoholic beverages) since such consumables are meant to be consumed in the
course of day to day business of the applicant, such consumables are non-transferable even
after 3 years. Hence these shall be exception to (a) and (b) above.

2. DGFT would also consider, on merits under para 2.5 of FTP 2004-09/2009-14 requests for
export sale of goods any time after import/procurement, subject to such export being without claim
for any export incentive, rebate, refund, drawback and/or re-credit of incentive and the bringing back
into India being treated as a fresh import.

3. Suitable public notice should be issued for guidance of trade.

Yours faithfully,


(Sukhbir Singh Ahuja)
OSD(DBK)
Tel: 23341480
circulars no 49 2016 | iKargos