Ans. Drawback Rates
Two types of drawback rates are available. They are:
i) All industry Rates: These are published in the form of notification by the government every year and are normally valid for one year.
ii) Brand Rates or Special Brand Rates: These are fixed on the individual request of an exporter/manufacturer.
The rates at which the incentive of duty drawback will be granted to individual exporter have been specified product-wise in the drawback schedule specified under the drawback rules. 26 Sometime the amount or rate of drawback are not determined in respect of export goods. In such cases the manufacturer or exporter of such goods may apply in the prescribed form .Application for Fixation of Drawback Rates'. The application should be submitted to the Department of Revenue, Ministry of Finance or with the Customs House/Central Excise Collectorate in whose jurisdiction their manufacturing unit is located. The application must be submitted within 60 days from the date of export.
The documents prescribed for such application areas under:
i) Application for Fixation of Drawback Rates
ii) DBK Statement I
iii) DBK Statement II
iv) DBK Statement III
v) Relevant facts including the proportion in which the material or components are used in the production or manufacture of goods and duties paid on such material or components.
A copy of such application should be sent directly to the Director (Drawback), Ministry of Finance, New Delhi. On receipt of the application, the customs/central excise officer will verify the application and forward to the Director (Drawback), Ministry of Finance, Government of India, New Delhi for fixation of Brand Rate. If satisfied, he will determine the amount or rate of drawback in respect of such goods. The Government have also provided simplified procedure of brand rate fixation without insisting on pre-verification of data by the Drawback Department.
Procedure
for Claiming Duty Drawback
The claim of Duty Drawback (DBK) is processed and passed for payment, primarily on the basis of the relevant information given in the drawback copy of shipping bill. The exporters are required to file the drawback copy of shipping bill in triplicate, in quadruplicate if any export assistance is applicable, well in advance in the Export Department or Central Registration Unit ~t the port or ICD Container Freight Station/Air Cargo Complex, etc, The DBK Shipping Bill must indicate the DBK Schedule No, of the export product, product description, DBK rate and total amount of drawback claim. In addition, it should also have a declaration that exports are being made under a claim of duty drawback. At the same time, there should also be a declaration that the duties of customs and central excise have been paid in respect of the material inputs used in manufacture of export goods as also in respect of container or packing materials. Exporters have to make sure that no separate claim is being made for rebate of central excise duties under the Central Excise Rules.
The Shipping Bills and other documents are scrutinized and examined by the concerned customs officer. Duplicate and Triplicate copies of the Shipping ,Bills with suitable examination order are returned to the exporters for presenting them to the Docks Appraising Officer. The Custom Officer gives examination report on both the copies of shipping bills and returns duplicate and triplicate copies to the exporters and original copy is retained. Exporters present duplicate and triplicate copy of shipping bills duly examined by the customs office to the Docks Appraising Officer along with the export goods. If the officer finds it in order, he endorses 'Let Export' order on both copies of the shipping bills. Triplicate copy of the shipping bill is deemed to be a claim for the drawback. If claims are found admissible and in order, are sanctioned. The amount is credited in the ledger account of the exporter maintained in the Drawback section.
Documents: The claim for duty drawback is filed along with the following documents:
i) Copy of export contract or letter of credit, as the case may be.
ii) Copy of packing list.
iii) Copy of AR4 form, wherever applicable.
iv) Insurance certificate wherever necessary.
V) Copy of communication regarding rate of drawback (if applicable)
vi) Copy of Test Report (if required)
vii) Declarations (if required)
viii) Declaration regarding not availing MODVAT
ix) Certificate from the Jurisdictional Excise Superintendent (if applicable)
x) Any other documents.
Where an exporter desires that he may be granted the incentives of drawback provisionally, he may, after making the application, apply in writing to the Drawback Directorate. He may request that a provisional amount be granted to him towards on export of such goods, pending determination of the amount or rate of drawback. However, for making provisional claims of duty drawback an exporter may be required to execute a general bond for the amount of drawback claim, with the Collector of Customs at the port from which the said goods are exported.
If the rate of drawback is less than three- fourth of the duties paid on the materials or components used in the production or manufacture of the said goods, he may within sixty days from the date of export , make an application in writing to the Drawback Directorate for fixation of appropriate amount or rate of drawback. The procedure and documents required for such application is the same mentioned earlier for fixation of drawback rates.
Duty Drawback Credit Scheme: As an export promotional measure, the Government of India have authorized the Reserve Bank of India to instruct the commercial banks (Authorized Dealers in Foreign Exchange) to grant interest-Gee credit to the exporters. The credit is given against their Duty Drawback entitlements pending scrutiny, sanction and payment by the Custom House. Such interest-free credit is being made available to exporters in India for a period of 90 days. However, the scheme is applicable only for export of such products for which Drawback rates have already been determined either on all-industry rate basis or on brand-rate basis.
Drawback on export by post: Where goods are to be exported by post under a claim of drawback, the outer surface of the packing must be marked as 'DRAWBACK- EXPORT',
In such cases, the exporters will submit to the postal Authorities a Drawback Claim Form instead of a shipping bill giving details regarding drawback schedule number, product , description, drawback rate and amount.
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