TMI BlogDecentralisation of the work relating to fixation of Brand Rate of drawback under Rule 6 and Rule 7 of the Customs & Central Excise Duties Drawback Rules, 1995X X X X Extracts X X X X X X X X Extracts X X X X ..... ocuments certified by the Chartered Engineers and Chartered Accountants in respect of applications filed under the Simplified Scheme, Brand Rates are fixed by the Drawback Division of the Department of Revenue. On the basis of the Brand Rate letters issued by this Ministry the respective Custom House disburse drawback amount to the exporters. 2. Over the years, owing to manifold increase both in the range and volume of goods which are being exported out of the country, there has been considerable increase of the number of such Brand Rate applications in the work load in this Ministry. However, due to concerted efforts and simplification of procedures, in most cases, it has been possible to fix such Brand Rates within the minimum possible time and bringing down the overall pendency substantially. 3. It has been the constant endeavour of the Govt. to help promote exports by simplifying the procedures and by eliminating all possible constraints in this regard. With this backdrop, as a major boost to export facilitation, the Govt. has announced the decision to take the work of Brand Rate fixation right to the doorsteps of the exporters by delegating the works o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herein File Number of the Commissionerate in which the application is intended to be processed, FIFO number assigned to the Brand Rate application and telefax number of the Additional/Commissioner of Central Excise with whom the exporter may like to make correspondence in this regard. A specimen of such acknowledgement letter is enclosed. ( c ) Verification of data given in the application: The data regarding consumption of inputs in manufacture of export goods furnished in DBK-I Statement, payment of Customs and Central Excise duty furnished in DBK-II and DBK-III Statements ,stocks of the duty paid inputs indicated in DBK-IIA and DBK-IIIA Statements, wastage( recoverable/irrecoverable), non- availment of CENVAT benefit and availability of disclaimer certificate from the manufacturer in case of Brand Rate application is filed by a merchant-exporter ,proof and scheme of exports ,comparison of the weight of the inputs mentioned in DBK-I Statement with the net weight of the export goods mentioned in the Shipping Bill or corresponding Invoices etc. are required to be got verified by the Deputy Commissioner of Central Excise having jurisdiction over the manufacturing un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a period of time with a quantity restriction( which is required to be fixed on the basis of the availability of the duty-paid inputs). Generally, the validity of the Brand Rate letters may be restricted up to one year. However, in respect of cases wherein Brand rate is calculated taking into account the All Industry Rate of Drawback admissible for any of the inputs, the validity of such Brand Rate letters may be restricted to up to one month from the date on which the validity of the All Industry Rate ceases to be effective. (iii) Port of Registration: In case of Brand Rate letters which are required to be issued for a period of time and the exporter intends to effect the shipment from more than one port of exports, the Brand Rate letters should also specify ( on the basis of the exporter’s request), the port of export for registration for ensuring that disbursement of Brand Rate of drawback does not exceed the quantity restriction specified in the Brand Rate letter. (iv) Value Addition: Fixation of Brand Rate of drawback is, inter alia, subject to the satisfaction of Rule 8(2) of the Drawback Rules which stipulates that the f.o.b. value of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corresponding Brand Rate letter and substantiates procurement of additional duty paid inputs which are required for manufacture of the proposed enhanced quantity of export goods, on the basis of original duty paying documents. These duty paying documents are required to be defaced and returned to the exporter after retaining photo copies thereof in the Brand Rate file. (viii) Time-Limit for filing Brand Rate application: As per the provisions of Rule6 and 7 of the Customs Central Excise Duties Drawback Rules,1995( as amended), the Brand Rate applications are required to be filed maximum within a period of 60 days from the Let Export Date of the first Shipping Bill. Delay up to 30 days; i.e; up to 90 days from the Let Export Date may be generally condoned on receipt of the exporter’s application in this regard. In case the Brand Rate application is for a number of Shipping Bills or a period of time, Brand Rate may be fixed excluding only the Shipping Bill/period which stands time-barred. Sometimes, various components/ vendor items of the export goods, like those in the Automobile Industry are manufactured in the jurisdictions of more than one Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner of Customs of the port of Customs so as to ensure authenticity of the Brand Rate letters and to rule out any scope for possible manipulation and fraudulent Brand Rate letters. 4. In view of the Govt. emphasis for disposal of Brand Rate applications on priority and transparent basis, all the concerned officers of the Central Excise Commissionerate may be suitably advised and made conversant with the procedures which have been briefly mentioned in the proceeding para and with the instructions which have been issued by this Ministry through various Circulars. The concerned Commissioners of Central Excise are, therefore, required to closely monitor the functioning of the Brand Rate Unit so as to ensure disposal of Brand Rate applications within the specified time-frame and that too in a transparent manner. Starting from the month of May, 2003, reports on receipt and disposal of Brand Rate applications may be sent to this Ministry. 5. Transitional arrangement : In view of this revised arrangement for fixation of Brand Rate of drawback starting from 1.4.2003, no fresh application/Verification Report from the exporter/ Central Excise Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n DBK-II/IIA and DBK-III/IIIA Statements. 7. In case, any Bill of Entry/Central Excise Invoice has been assessed provisionally, the reason for provisional assessment may be specified. Besides, a Declaration not to claim revision of Brand Rate of drawback in case the duty is upwardly assessed in final. 8. Disclaimer Certificate from the manufacturer in case, the Brand Rate application is filed by a merchant exporter. 9. Drawback Working Sheet. 10. Value Addition Statement. 11. A copy of the Advance Licence. 12. A brief description of the manufacturing process. 13. Declaration regard availment/non-availment of the CENVAT benefit. VALUE ADDITION WORKING SHEET (for the purpose of Rule 8 (2) of the Drawback Rules) ( With reference to the fixation of Brand Rate of drawback for export of one Agricultural Tractor) Value Addition : f.o.b. value- c.i.f. value x 100 c.i.f. value Rs.342,358.00 – Rs.42,808.00 * x 100 Rs.42,808.00 = 6 69.75 % ( approx ). * c.i.f. value for the imported inputs. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
