Drawback - Condonation of delay in filing application for fixation of Brand Rate under Customs and Central Excise Duties Drawback Rules, 1971 - Customs - 18 (DBK)

Circular No. 18 (DBK), Dated 31-8-1994 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Drawback - Condonation of delay in filing application for fixation of Brand Rate under Customs and Central Excise Duties Drawback Rules, 1971 I am directed to invite your attention to Rules 6 and 7 of the Customs and Central Excise Duties Drawback Rules, 1971 whereunder an exporter can file an application for fixation of Brand Rate or a Special Rate, as the case may be, within 30 days of the date of export of the goods. The Central Government can allow a further period of 30 days after satisfaction that the manufacturer or exporter was prevented by sufficient cause for making the application within the period of 30 days. Rule 15 of the said rules also empowers Central Government to relax any of the provisions of the said rules on being satisfied that exporter, for reasons beyond his control, failed to comply with any of the provisions of the said rules. 2. The Ministry has been receiving a number of representations for extention of aforesaid time limit under Rules 6 and 7 in cases where exporter was prevented by genuine reasons from filing their application within the period of 60 days from the date of export. The Ministry was however normally not condoning the delay in filing application under Rule 15 so far. 3. In view of various representations received and taking into consideration that in many cases there are genuine reasons which prevent an exporter to file his application within the initial period of 30+ 30 days, the matter has been re-examined and it has been decided that Ministry may consider relaxation of time limit in exercise of powers under Rule 15 in following types of cases :- (a) Where the applicant files his claim for All Industry Rate but the Customs House, after expiry of more than 60 days from the date of export, informs him that. All Industry Rate would not be admissible and the exporter should file Brand Rate application with the Ministry. (b) Where goods initially exported for exhibition purpose are subsequently sold in a foreign country. (c)Where exporter starts exporting after having applied for an Advance Licence, but his application gets rejected subsequently or where having obtained an Advance Licence and after exporting the goods the exporter surrenders his Advance Licence, with the approval of licencing authority. (d) Where delay in filing of Brand Rate application is on account of law and order problems, riots/strikes or an abnormal situation prevailing in the area of the place of production of export goods or their Registered or Head office which may prevent access to the export documents. (e) Where an existing All Industry Rate on an Export product is withdrawn with effect from a particular date, but notice of such changes comes to the knowledge of the trade at a much later date. (f) Where payment of import duties or part thereof payable on inputs used in the manufacture of export goods, may be deferred, for example on account of a stay given by a Court of Law, and such duty is paid by the exporter long after the goods have been physically exported, after the finalisation of the Court case etc. (g) Where Brand Rate is filed by mistake to a different authority resulting in delay in the receipt of such applications in the Directorate of Drawback in the Department of Revenue. 4. Condonation of delay under Rule 15 in the aforesaid type of cases, upto 180 days, in addition to 60 days permitted under Rules 6 and 7 of Duties Drawback Rules. In all such cases the manufacturer or exporter should state the specific reasons for delay in filing the application supported by documents, wherever necessary, and verification of the input data should either have been completed or it would be practically possible to conduct a verification at a later stage when the application is filed. A copy of this Circular is being endorsed to all export promotion councils/organisations for bringing the above guidelines to the notice of exporting community. The exporters should make specific requests for condonation of delay in the aforesaid type of cases while filing application for fixation of Brand Rates to the Ministry as well as to the Collectorate for verification of data. Collectors should examine such requests for condonation of delay on merits and send their recommendations to the Ministry for necessary consideration. Such recommendations should always be made under the signature of the Collector concerned.