New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Duty Drawback

Customs - CBEC s Customs Manual 2015 - 22 - Chapter 22 1. Drawback on re-export of imported goods 1.1 on export of duty paid imported goods is in terms of Section 74 of Customs Act, 1962 read with Re-export of Imported Goods (Drawback of Customs Duty) Rules, 1995. The goods are to be entered for export within two years from date of payment of duty on importation thereof. Under certain circumstances this period may be extended by Chief Commissioner of Customs and then by the Board. 1.2 Applicatio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ght per cent of is admissible otherwise drawback is granted based on extent of use. Used goods do not get Drawback if exported 18 months after import. [Refer Notification No.19-Cus., dated 6-2-1965] 1.4 All cases of drawback processing or denial under section 74 are to be handled byway of detailed 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inputs and (ii) Service Tax in respect of input services. is of two types: (i) All Industry Rate and (ii) Brand Rate. The legal framework is provided by Sections75 and 76 of the Customs Act, 1962 and the Customs and Central Excise Duties and Service Tax Drawback Rules, 1995 (Drawback Rules, 1995) issued under the CustomsAct, 1962, the Central Excise Act, 1944 and the Finance Act, 1994. 2.2 The All Industry Rates (AIR) are notified, generally every year, by the Government in the form of a Drawba .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

duty rates, consumption ratios and FOB values of export products. Data is also sought from Central Excise and Customs field formations and information received from Ministries taken into account. 2.4 The AIR may be fixed as a percentage of FOB price of export product or as specific rates. Drawback Caps are imposed in most cases to obviate the possibility of misuse. 2.5 The scrutiny, sanction and payment of claims at EDI locations is carried out with the aid of the EDI system which also facilitat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ces used in the manufacture of export goods. Brand rate is fixed by the Commissionerate of Central Excise having jurisdiction over the manufacturing unit. 2.7 An exporter, who has opted /declared at the time of export on the shipping bill his intention to claim the Brand Rate by specifying the figure 9801 as identifier, 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 from LEO subject to conditio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

services. 2.9In brand rate of drawback, 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. 2.10 Five categories of exporters can seek provisional brand rate letters based on their declaration subject to post verification. Other exporters who actually file application for fixation of Brand Rate under .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

relevant Customs authority to facilitate payment of brand rate of Drawback to the exporter. 3. Procedure for claiming : 3.1 Either the AIR or the Brand Rate may be claimed on the shipping bill at the time of export and requisite particulars filled in the prescribed format of Shipping Bill/Bill of Export. In case of exports under electronic Shipping Bill, the Shipping Bill itself is treated as the claim for Drawback. In case of manual export, triplicate copy of the Shipping Bill is treated as cla .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re any exporter finds that the amount of under section 75 paid to him is less than what he is entitled to on the basis of the amount or rate of Drawback determined, he may prefer a supplementary claim. This claim has to be filed within 3 months of the relevant date, which is fixed, as follows: (i) where the rate of is determined or revised under Rules 3 or 4 of the Drawback Rules, 1995 from the date of publication of such rate in the Official Gazette; (ii) where the rate of is determined or revi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, 1962 and the Drawback Rules, 1995 lay down certain limitations and conditions for grant of . For example, no shall be allowed where the drawback due in respect of any goods is less than ₹ 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 dr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion that there is likelihood of export goods being smuggled back into India, the Government may not allow drawback or allow it subject to specified conditions or limitations. Notifications have been issued under Section 76 of the Customs Act, 1962. An example is Notification No. 208-Cus., dated 1-10-1977. 5.4 While prior repatriation of export proceeds is not a pre-requisite for grant of , the law prescribes that if sale proceeds are not received within the period stipulated by the RBI, the will .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

export proceeds: 6.1 Each Custom House is to have a special cell monitoring realization of export proceeds. EDI locations are also facilitated, via MIS Report of DG (Systems), to retrieve data on exports (made from 1.4.2013 onwards) under drawback scheme whose remittance is outstanding beyond due date. Notices are to be issued for recovery of drawback paid in respect of export consignments where export proceeds remain unrealized within the prescribed period and adjudication as well as further a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ated 18-1-2011, F.No. 603/01/2011-DBK, dated 11-10-2013 and DG (Systems) letter No.IV(35)/46/2013-Systems dated 25/28.8.2014] 7. Certain aspects relating to : 7.1 While processing Drawback claims, whether under Section 74 or Section 75, wherever any deficiency is noticed in the claim, it is to be communicated to the exporter in a clear unambiguous manner within a period of 10 days, from the date of filing of the claim. Commissioners of Customs are to undertake a periodic review and monitoring of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for lower AIR. [Refer Instruction No. 609/156/2013-DBK., dated 13-3-2014] 7.3 Commissioners are also to ensure that exporters do not avail refund of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods through any other mechanism while claiming the higher AIR. [Refer Circular No.19/2006-Cus., dated 13-7-2006] 7.4 The field formations are to ensure periodic sample checks and verifications with respect to export declarations acce .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rule 18 of Central Excise Rules, verification of actual freight payment certificates when CIF or C&F values are declared, etc. Random checks with respect to debit notes raised by foreign buyers after initial realization by exporter, reduction in invoice value after proceeds are negotiated or realized, etc may also be considered by Commissioners. Detections that indicate lower FOB/realization or other information of relevance when benefits under FTP are also involved should also be intimated .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version