IEC
DUTY DRAWBACK
ELIGIBILITY
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.

 

Policy & Procedure
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Copyright © 2002-2003 All Rights Reserved.