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DUTY
DRAWBACK
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ELIGIBILITY
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Drawback
is an international term and is widely acknowledged as most
important incentive for export In India drawback is covered
under Section 74, 75 & 76 of Customs Act 1962 as amended.
under Section 76 there are certain prohibition under certain
type of cases particularly the draw back is admissible if
the market price of the product is less than the amount of
drawback and if the drawback is less than Rs.50/-.
The drawback under Section 74 is admissible when the imported
goods are re-exported and in this case 98% of the duty is
repaid as drawback. This type of drawback is dealt by the
Commissioner of Customs of the Port of Export subject to certain
restrictions and conditions.
Under Section 75 of the Customs Act 1962 and Section 37 of
the Central Excise and Salt Act 1944 the Central Govt. has
made the drawback rules as per the Notification No. 37/95-
Customs dtd 26.5.1995.
Under these rules of Drawback, the Commissioner of Drawback
in Jeevan Deep Building, Dept. of Revenue, Ministry of Finance,
is fixing rates of drawback in the general items of export.
These rates in the Trade Practice are called as All Industry
Rates and are published every year 90 days after general budget
i.e normally if the budget is announced on 28th February then
the drawback rates are announced from 1st June. Now 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 Rule6 of the drawback rules and these
rates are called Brand Rates of Drawback.
Under Section 76 there are certain prohibition under certain
type of cases particularly the drawback is admissible if the
market price of the product is less than the amount of drawback
and if the drawback is less than Rs.50/-.
For condonation in delay in respect of filing of payment claims
with the Port of Export Customs Authorities the power has
been delegated upto 6months from the let export date to Asstt.
Commissioner of Customs DBK and upto 9 months to the Commissioner
of Customs. |
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