Customs Advisory & Compliance Services

• In India, there are various incentive scheme introduced by the Government to make India Atmanirbhar and further boosts export from India. Schemes such as EOU, MOOWR, AA, SEZ, DBK could be relevant even for a business having zero exports. Hence, in today’s price sensitive market, it is imperative to consider various benefits and costs included in the day-to- day transactions to build a successful financial model.

  We at Optitax’s have developed a financial model which help in determining the best incentive scheme which a business can consider to formulate a better strategy. We have made every attempt to include all relevant factors which can have an impact on the cost while deciding the feasibility.

  The report indicates feasibility both in numbers and intangible aspects. The report ahead is divided into following

  • Understanding of the Company
  • Methodology
  • Brief note on report
  • Detailed findings of the simulator
  • Report on intangible factors that can affect business

  Features such as Exhaustive & holistic consideration of legal provisions, procedural aspect, negative list, mutual exclusivity, combination of other schemes, precisely defined, information requirement list to get most apt report, least time consuming for the client and human interface only if required, makes the report different.

  Our scope of work would involve:

  • Advice on structuring of transaction(s)/business model(s) from an Indirect taxes perspective to ensure optimum utilization of export incentive schemes (SEIS, etc.)
  • Identify sustainable saving opportunities and suggest appropriate incentive scheme(s) or combinations thereof on the basis of relative merits
  • Comparative analysis/ review of existing incentives availed like AA, MOOWR, RODTEP, EPCG, etc to evaluate benefits forgone

  We have developed a software that enables comparative analysis of existing incentives availed like AA, MOOWR, RODTEP, etc and suggests the most suitable option….COMING SOOONNN…..

4.1 MOOWR
Customs bonded warehouse (private/public) is an age-old concept in international trade. In such warehouses, imported goods can be stored for a specified period without payment of customs duty till the time are goods are intended to be removed for home consumption. No import duty is required to be paid if the bonded goods are further exported. Any importer can make use of Public Warehouses of own choice anywhere in India for bonding of imported goods and save on demurrage and interest on import duties for period of 90 days. Bonded goods can be freely export goods within 1 year without payment of and Private bonded warehouses, in addition, may are separately be permitted to carry out manufacturing and other operations by the jurisdictional customs authorities.

Since its inception, the Indian Customs Law has recognized manufacturing in the customs bonded warehouse. The Government has further simplified the warehousing provisions in 2019and procedures in line with the globally accepted framework. Except precious metals and a few supplies, the stocking and removal of bonded goods to DTA can be done without physical control of officers. This, presumably, is in the backdrop of the likely revamp of EOU, SEZ, EPCG, and other such schemes. Therefore, a So, an existing factory anywhere in India can be converted into a MOOWR unit. A unit licensed under the Manufacturing and Other Operations in Warehouse Regulations (‘MOOWR’) could be a suitable alternative to units under enjoying existing other schemes to neutralize the customs duty in international supply chains. We offer a The MOOWR alternative ideally should be opted for after doing a wide angled feasibility/ comparative study taking into consideration the proposed business activity.

Feasibilty / Comparative study

• Understanding the business and requirements along with the present benefits and projected deviations of investment in import of CG/material
• Discuss and advice project viability in comparison with other import/export schemes supported by numerical analysis
• Evaluate multiple schemes and select the most suitable scheme (or mix of schemes) for claiming optimum benefits
• Based on above prepare final report on feasibility of implementing the specified scheme from inter alia financial, logistic, tax perspectives

Assistance in obtaining MOOWR 19

• Arrangements: Time bound plan, resource allocation etc.
• Application: Collection & collation of information for filing of an application
• Approval: Arrange for site verification by Customs authorities
• Assistance in obtaining Bond & Bank Guarantee and warehousing license and permission along with Unique warehousing code
• Other areas where we can support on terms to be agreed i. Representation to Custom authorities ii. Archiving & retrieving of documents iii. Departmental audit assistance iv. Location wise Standard operating procedures [‘SOP’] v. Assistance in stock inspection by Custom Authorities

4.2 Advance Authorization

• Advisory support in respect of material procurement and availing benefits under the AA scheme
• Advisory
• Circulating information requirement list for filing online application for AA, collating requisite documents
• Review of classification of raw material and export products
• Prepare and apply AA with DGFT (online followed by physical submission)
• Follow up with DGFT, respond to queries/ additional information requirements and obtain an AA
• Assistance in executing bond and bank guarantee with Customs Authorities for duty-free import under AA

4.3 EPCG

• Advisory support in respect of availing benefits under EPCG
• Circulating information requirement list for filing online application for EPCG authorization, collating requisite documents
• Prepare and apply EPCG with DGFT (online followed by physical submission)
• Follow up with DGFT, respond to queries/additional information requirements to obtain EPCG
• Assistance in obtaining a certificate from an independent Chartered Engineer confirming installation of capital goods at the factory to be submitted to DGFT within 6 months from the date of completion of import
• Assistance in executing a bank guarantee to cover exemption from customs duties 

4.4 RODTEP

• Conduct due diligence of documents & processes to identify risk & process gaps
• Analyze/ Evaluate benefit notified under RoDTEP
• Provide understanding of requirements of Form R & filing of same to RoDTEP committee
• Day to day advisory
• Representations including litigation