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Home News News and Press Release Month 8 2009 2009 (8) This

Letter for trade associations and export promotion councils requesting them to submit cost data for formulation of All Industry Rates of Duty Drawback, 2009-10

11-8-2009
  • Contents

D.O. F.NO. 609/67/2009-DBK

                                                                             3rd August, 2009

NAJIB  SHAH                                            

Joint Secretary (Drawback)                        

Tele fax : 2334 1079

Dear Chairman/President,

Sub: All Industry Rates of Duty Drawback, 2009-2010.

Under the Duty Drawback Scheme administered by this Department the duties (Customs & Central Excise) paid on inputs and service tax paid on input services used in the manufacture of export goods are refunded  to the exporters in the form of drawback. The drawback rates are worked out and notified every year after taking into account the budgetary changes in the duty structure and other relevant facts.

2. The exercise is underway in the Ministry to re-work and revise the rates of duty drawback for the year 2009-2010. 

3. As you are aware, All Industry Rates of Duty Drawback are worked out by considering the consumption of input materials/ services and the incidence of duties/taxes on these input materials/ services. We would, therefore, request you to provide us with a comprehensive cost and consumption data regarding the various inputs/input services which are used in the manufacture of export products. A proforma in three parts is enclosed. I would like to emphasize that the consumption of input materials/ services and incidence of duties / tax, which is shown against the export of products must be relatable to the actual business activity of exports. Therefore, the second part of this proforma requires information on the actual cost incurred for making the exports and the sales realization on such exports. The third part of the proforma relates to the incidence of service tax on exports.

4. Please ensure that data provided is as representative as possible. Data pertaining to at least five units should be submitted for each export product. The units should be selected from amongst the small, medium as well as large exporters so that the data is truly representative. Needless to say the data should be collected only from the manufacturers/manufacturer exporters. As far as possible, data should be supported by relevant documents such as Bills of Entry, Shipping Bills, invoices etc. Further, while submitting data in respect of a particular export item manufactured by a manufacturer, details of any/all  input(s)/service(s) used in the manufacture of all types/styles of that particular export item should be indicated i.e. for instance, data on T-shirt/shoes should include total quantity/value of inputs/services used by that manufacturer for manufacture of all types of T-shirts/shoes. Secondly, the data should indicate the total FOB value of T-shirts/shoes exported by that manufacturer.

5. You are also requested to inform regarding anomalies, if any, noticed in the Drawback Schedule, both with reference to description of the goods or the rates. This will help us rationalize the schedule. Your suggestions are also welcome on any other aspect of the drawback scheme which you feel need to be examined.

6. Since, the work is time bound in nature, you are requested to kindly furnish information in the prescribed proforma by 21st August, 2009. The information sought for with regard to anomalies may be sent separately in the form of a note. The information may also be sent by e-mail at mofdbkdatabank@hotmail.com.

7. The government has, like the previous year, constituted a three-member committee consisting of Shri Saumitra Chaudhuri, Member, Planning Commission of India, Shri S. B. Mohapatra, Secretary to the Government of India (retired) and Shri T. R. Rustagi, Chief Commissioner of Customs & Central Excise (retired) for the formulation of All Industry Rates of Duty Drawback, 2009-2010. Should you wish to make a presentation before the committee, you may intimate in advance so that it can be organized.

Yours sincerely,

 Click here for Proforma

  (NAJIB SHAH)

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