TMI BlogFixation of brand rate of duty drawback by the Central Excise field formations under Rules 6 and 7 of the Customs and Central Excise Duties Drawback Rules, 1995 - Removal of difficulties – regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... ited to revised Customs and Central Excise Duties Drawback Rules, 1995, as amended by Notification No.20/2003-Cus(N.T.) dated 3.3.2003. 2. The fixation of duty drawback under Rule 6 (i.e. Brand Rate) in respect of those export products which do not figure in the All Industry Rate of Drawback Table or under Rule 7 (Special Brand Rate) where the exporters apply for such fixation on account of inadequate rebate of input stage duties through All Industry Rate, was earlier centralised in the Ministry. However, as a measure of decentralisation and trade facilitation, the powers for fixation of brand rate and special brand rate have been delegated to the jurisdictional Commissionerates o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agents, wattle extracts and leather dyes auxiliaries are used in the finishing of raw hides. Therefore, the duties on these inputs remain unrelieved as leather (finished/lining) is not subject to the Central Excise levy. Therefore, it has been the practice to factor the All Industry Rate of duty drawback available on finished/lining leather into the total duty drawback rate while calculating the drawback rate for export products manufactured from finished/lining leather. Field formations are, therefore, advised that while computing the brand rate of drawback for leather articles including footwear, the All Industry Rate available on finished/lining leather may be conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Similarly, in the case of complete bicycle, manufactured by using various cycle parts and also certain other accessories/parts, not listed under SS No.87.44 of the Duty Drawback, the brand rate could be allowed in respect of such extra parts/accessories, provided that these parts/accessories are procured on payment of duty and not imported duty free under Advance Licence/DFRC/DEPB Schemes. Illustration: For example, an exporter exports a complete bicycle with certain accessories, i.e., indigenous seat cover, imported headlight, indigenous front basket, bicycle bell (SS No. 87.52), bicycle stand (SS No. 87.106), carrier(SS No. 87.63) and freewheel mult ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fixing brand rate of duty drawback for complete buses. This component purely has the Central Excise duty incidence and hence should be allocated accordingly. Illustration: An exporter exports a complete bus. The Chassis portion of the bus has been manufactured by using various parts, components, compressor for air-conditioner. The details as regards the duty incidence suffered on various inputs is provided in DBK-II and IIA supported by duty paying bills of entry. The exporter avails Cenvat on the countervailing duty suffered on all the imported inputs and claims only the Customs duty incidence on account of basic Customs duty and Special Additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been decided that proposals for fixation of brand rate involving duty drawback of more than Rs.5 lacs, shall be approved by the Additional/Joint Commissioner of Central Excise without any limit. In other words, no proposal for fixation of brand rate of drawback shall be submitted to the Commissioner of Central Excise for approval. (d) Scope of rules 6(3) and 7(4) of the Customs and Central Excise Duties Drawback Rules, 1995. It is clarified that the powers of Ministry expounded in rules 6(3) and 7(4) of the Customs and Central Excise Duties Drawback Rules, 1995 are envisaged to be exercised on rare occasions. Only in those cases, where the Ministry gets the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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