TMI BlogChanges in the provisions relating to Drawback in the Customs Act, 1962 by Finance Act, 1995 - Re-export of Imported Goods, (Drawback of Customs Duties) Rules, 1995 and the Customs and Central Excise Duties Drawback Rules, 1995X X X X Extracts X X X X X X X X Extracts X X X X ..... xporter shall be entitled to interest at the rates specified on the drawback amount where drawback is not paid to him within three months from the date of filing of his claim. Interest on erroneous excess drawback recoverable (3) Similarly where an exporter has been paid erroneous or excess drawback and fails to repay the same within three months from the date for demand, he shall be liable to pay interest on the amount recoverable. Retrospective all industry rates (4) Central Government shall be empowered to announce All Industry Rates of Drawback even with retrospective effect from a date not prior to the date of change in rates of duties on the inputs used in the export product. Rule making power u/s 74 (5) Section 74 has been amended to empower Central Government to make rules for the purpose of the said section. New Rules Notified 2. In order to give effect to the changes effected in the Act and also to streamline the existing rules, it was considered necessary to revise the Customs and Excise Duties Drawback Rules, 1971. Accordingly Customs and Central Excise Duties Drawback Rules, 1995 have been issued is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties shall be treated as date of filing of claim by the exporter for the purpose of section 75A of the Customs Act. Thus drawback should be paid to the exporter within three months from the date of receipt of claim form from the postal authorities. On receipt of claim form, an intimation is also required to be given to the exporter. Where claim form is incomplete a deficiency memo must be issued within fifteen days of its receipt from the postal authorities. The exporter can resubmit his form after compliance with deficiencies within a period of 30 days. If such a claim is found to be in order, the same should be acknowledged and the period of three months for payment of drawback in terms of section 75A in such cases shall commence from the date of such acknowledgment. Filing of Claim for Drawback on goods exported other than by post (ii) The procedure for filing a claim for drawback in case of goods exported other than by post has been specified in rule 13. The claim is required to be filed in triplicate in the form prescribed in the rules within three month from date relevant for applicability of amount or rate drawbac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dy./ Addl. Commissioner for their concurrence. Order passed by Commissioner (Appeals), Central Government or Courts. (v) In case where an order for payment of drawback is made by Commissioner (Appeals), Central Government or any Court against the order of the proper officer of Customs, the manufacturer or exporter will be required to file a claim in the manner prescribed within three months from the date of receipt of order so passed. Date of payment for the purpose of Section 75A. (d) Since the interest is required to be paid for the period commencing from three months after the date of filing of claim by the exporter till date of payment, it has been specified in rule 14 that in case of payment by cheque to the exporter or his agent, the date of cheque shall be the date of payment whereas in case of credit in the exporter's account maintained in the Custom House, the date of such credit shall be deemed to be the date of payment Commissioners should ensure that issue of cheque should be done as immediately as possible after sanction/ pre audit. For this purpose the issue of cheques should be on weekly basis without f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to execute a bond with the Commissioner of Customs for an amount not exceeding the full amount claimed as drawback and with such surety or security as the Commissioner of Customs may direct. However, under rule 7 the bond shall be only for the difference between the All Industry Rate of drawback and the provisional rate of drawback authorised by the Central Government under the said rules. Claims filed before commencement of these rules (c) In terms of proviso to section 75A (1), drawback in respect of any claim filed under section 74 or section 75 of the Customs Act, before the enactment of Finance Act, 1995, if not paid within three months from the date of enactment will require to be paid with interest at the prescribed rates. Provision has therefore been made in the rules for disposal of all such pending claims in accordance with the provisions of new rules. Thus where as such claims need not be filed by the exporter again in the form prescribed under rule 11 or rule 13, such claims could be treated to have been so filed. In case the claims are complete in all respects, the amount of drawback should be paid within t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods exported other than by post (ii) Rule 4 provides for statement/ declarations to be made on the Shipping Bill/ Bill of Export in case of goods exported under section 74. Rule 5 provides for the time and manner for claiming drawback on such goods. The claim is required to be filed in the prescribed from within three months from the date of 'Let Export Order' under section 51 by the proper officer of Customs. The claim in sub-rule (2) of rule 5. Procedure regarding affixing Dated Receipt Stamp and issue of acknowledgment or deficiency memo as in the case of claims under section 75 has been prescribed for claims under section 74 of the Customs Act in these rules also. Extension of time limit by Assistant Commissioner (iii) Rule 5 provides that where the Assistant Commissioner is satisfied that the exporter was prevented by sufficient cause to file his claim within the prescribed period of three months, he may permit claim to be filed within a further period of three months. As instructed in sub-para (iv) of para (c) relating to Section 75 claims, the file should be put up to the Deputy Commissioner/ Addl. Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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