TMI BlogDuty DrawbackX X X X Extracts X X X X X X X X Extracts X X X X ..... ed speaking order, following the principles of natural justice, on the issue of compliance to Rule 5 of Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 relating to manner and time of claiming drawback, identification, determination of and extent of use and other attendant aspects. Refer Circular No.35/2013-Cus dated 5-9-2013] 1.4 Application for such Drawback is required to be made within 3 months, from the date of export of goods, which may be extended up to 12 months subject to conditions and payment of requisite fee as provided [Refer Circular No.13/2010-Cus., dated 24-6-2010] 2. All Industry Rates (AIR) of Duty Drawback: 2.1 Duty Drawback rebates duty or tax chargeable on any imported / excisable materials and input services used in the manufacture of export goods. The duties and tax neutralized under the scheme are (i) Customs and Union Excise Duties in respect of inputs and (ii) Service Tax in respect of input services. Duty Drawback is of two types: (i) All Industry Rate and (ii) Brand Rate. The legal framework is provided by Sections 75 and 76 of the Customs Act, 1962 and the Customs and Central Excise Duties and Service Tax Drawback Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the drawback Sr. No. as 9801, has to file an application for fixation of the brand rate within 3 months from the date of the Let Export Order which can be extended up to 12 months subject to conditions and payment of requisite fee as provided in the Drawback Rules, 1995. This application has to be made before the Commissioner of Central Excise having jurisdiction over the manufacturing unit. [Refer Circular No.13/2010-Cus., dated 24-6-2010] 3.3 The application is to include, inter alia, details of materials/ components/ input services used in the manufacture of goods and the duties/taxes paid on such materials/components/ input services. 3.4 The exporter is compensated the incidence actually incurred in the export product based on a verification of documents and proof of usage of actual quantity of inputs /services utilized in the manufacture of export product and duties/tax paid thereon. There are provisions for provisional drawback payment. Five categories of exporters can seek provisional brand rate based on their declaration subject to post verification. Other exporters who file application for fixation of Brand Rate under rule 7 of the Customs, Central Excise Duties an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Rules 6 or 7 of the Drawback Rules, 1995, from the date of communicating the said rate to the person concerned; and (iii) In all other cases, from the date of payment or settlement of the original Duty Drawback claim by the proper officer: 5.2 The period of 3 months may be extended up to 18 months subject to conditions and payment of requisite fee as provided in the Drawback Rules, 1995. [Refer Circular No.13/2010-Cus., dated 24-6-2010] 6. Limitations on admissibility of Duty Drawback: 6.1 The Customs Act, 1962 and the Drawback Rules, 1995 lay down certain limitations and conditions for grant of duty drawback. For example, no duty drawback shall be allowed where the drawback due in respect of any goods is less than Rs.50/- or in respect of any goods the market price of which is less than the amount of drawback due thereon. No amount or rate of drawback shall be determined in respect of any goods, the amount or rate of drawback of which would be less than 1% of FOB value of export thereof except where the amount of drawback per shipment exceeds Rs. 500/-. No drawback is allowed where value of export goods is less than the value of imported material used in their m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /negative statements into the system and of issuing Show Cause Notices (SCNs) to exporters wherever they are not submitted and taking further action including adjudication of the cases for recovery of drawback has to be accomplished in a methodical and time bound manner. 7.3 For cases where the show cause notices, which have been issued for non-submission of BRCs/ negative statements, are returned undelivered as the recipient/ address was non- existent, the Commissioners should also report the names of exporters to the Regional Authorities of DGFT at regular intervals or during joint meetings so that action can be taken against them and their IE Codes got cancelled for furnishing wrong addresses. 7.4 The Commissioners are required to, by way of audit, exercise special checks in case of first time exporters, exporters who have taken large amounts of drawback suddenly, sensitive destinations, sensitive products etc. so as to ensure that there is no misuse of the drawback facility. Also, random audit checks are to be exercised in respect of other exporters to ensure that all export proceeds are realized. It needs to be confirmed on a random basis whether the certificates given by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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