E-way bill has to be generated prior to commencement of transport of goods

We had to bring an export shipment back to our factory as we missed the shipment. We had already filed the shipping bill. Now the problem is with EDPMS. The payment against export shipping bill is showing outstanding in the EDPMS. Our bank is fully aware of the issue and the transactions. They are also aware that the goods were returned back. They are asking us to take a write-off. Is that correct?

This is a case of shut out shipment. The RBI instructions are given in Para B.10 of FED Master Direction no. 16/2015-16. The instructions say that “where a shipment has been entirely shut out and there is delay in making arrangements to re-ship, the exporter will give notice in duplicate to the Customs in the form and manner prescribed, attaching thereto the unused duplicate copy of EDF and the shipping bill. The Customs will verify that the shipment was actually shut out, certify the copy of the notice as correct and forward it to the Reserve Bank together with unused duplicate copy of the EDF. In this case, the original EDF received earlier from Customs will be cancelled. If the shipment is made subsequently, a fresh set of EDF should be completed.” You should follow this procedure. You need not take a write-off.

When are we required to generate an e-way bill? 

As per Rule 138 of the CGST Rules, 2017, an e-way bill has to be generated prior to the commencement of transport of goods.

We were issued an EPCG authorisation in June 2017 and actual import of capital goods under the EPCG was done in August 2017. We have some shipping bills between June 2017 and August 2017, where we had mentioned this EPCG authorisation number and date. Please guide us as to whether we are right in mentioning this EPCG authorisation no. and date on such shipping bills, which are prior to the date of actual import of capital goods under the EPCG. In other words, can “specific export obligation” be fulfilled after the issuance of the EPCG authorisation, but before the actual import of the capital goods under the EPCG authorisation?

The FTP does not specifically allow this under EPCG scheme as it does (at Para 4.27 of HBP) in the case of advance authorisation scheme. However, my opinion is that you can do so because Para 5.04 (a) of FTP only says that export obligation shall be fulfilled by the authorisation holder through export of goods which are manufactured by him. Also, the explanation (C) in the exemption notification 16/2015-Cus dated April 1, 2015 says “export obligation” means obligation on the importer to export to a place outside India, goods manufactured or capable of being manufactured by the use of capital goods imported in terms of this notification. However, please note that as per Para 5.04 (b) of FTP, only the exports made in excess of the stipulated annual average will be counted towards discharge of specific export obligation.