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DUTY
DRAWBACK
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BRAND RATE FIXATION
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Brand
Rate Fixation If the export product is not covered under the
All Industry Rates the exporter/manufacturer can apply for
fixation of brand rate of drawback under Rule 6 of the drawback
rules and these rates are called Brand Rates of Drawback.
There is also another provision under Rule 7 of the Drawback
rules that if the exporter/manufacturer feels that the drawback
rate allowed is inadequate then he can go for fixation of
Special Brand Rate under Rule 7 of the Drawback rules and
the primary condition for fixation of such rate is that the
All Industry Rate is in fact less than 4/5th of such amount
or rate determined under this rule.
As a matter of fact the drawback amount is supposed to be
equivalent to the amount of Customs Duty in respect of imported
raw material / inputs used in the export products and the
Central Excise Duty suffered on the indigenous inputs provided
MODVAT facility has not been availed for the indigenous inputs.
For fixation of Brand Rate as well as Special Brand Rates
applicant has to file for fixation of rates under Rule 6 /
Rule 7 to the Commissioner of Drawback, Jeevan Deep Bldg,
within 60 days of the let export date. Further 30 days can
also be allowed by the Commissioner of Drawback on request
with reasonable grounds to be made by the Exporter / manufacturer.
Fixation of Brand rate is done by the Commissioner of Drawback
after receipt of verified data filed by the exporter / manufacturer.
The verification of date is done by Jurisdictional of Central
Excise in this regard and the verification of data is to be
done within one month of the receipt of the brand rate application
and this is under normal procedure of the drawback. However
as a matter of liberalization the Govt. has also allowed the
brand rate to be fixed under simplified procedure on provisional
basis. Under simplified procedure the verification is to be
conducted at a later stage this facility was admissible earlier
to limited companies only but since 1996 onwards the same
facility was extended to Partnership concerned. To avail this
facility the applicant has to execute a bond on the prescribed
format stating that the difference in the rate if any found
on verification of data will be recoverable from the exporter
/ manufacturer immediately.
After fixation of rates the exporter / manufacturer has to
go for payment of drawback from the Commissioner of Customs
of Port of Export and the normal time allowed for filing such
claims may be on the basis of All Industry Rate / Special
Brand Rate within a period of 90 days of let export or the
drawback rate fixation whichever is later in the payment procedure
also certain new schemes of quick payment have been floated
for examples if the export is by Air/ICD then the Commissioner
of Customs, New Delhi is operating computerized scheme of
quick payment of drawback and the exporter is to open an account
with the Punjab National Bank Branch in the New Customs House
before the exports are made. After that within normally a
period of one week the drawback amount is automatically credited
to the account of the export without availing any claim whatsoever.
Automatic credit is only admissible in respect of the exports
where All Industry Rates of Drawback are available for the
export products. For all other cases one has to file claim
with the Asstt. Commissioner of the Port of Exports. |
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