Government of India Ministry of Finance, Department of Revenue Central
Board of Excise & Customs
Circular No. 32/2017 - Customs
New Delhi, dated 27th July, 2017
To, Principal Chief Commissioners / Principal Directors General, Chief
Commissioners / Directors General, Principal Commissioners / Commissioners,
all under CBEC
Madam/Sir,
Sub: Clarification regarding exports under claim for drawback in the GST
scenario
As you are aware, the higher All Industry Rates (AIRs) under Duty Drawback
scheme viz. rates and caps available under columns (4) and (5) of the Schedule
of All Industry Rates of Duty Drawback have been continued for a transition
period of three months i.e. 1st July, 2017 to 30th Sep, 2017 (Circular No. 22/2017-Customs
dated 30th June, 2017).
2. Various issues have been highlighted by field formations and exporters
regarding the requirement of a certificate to be obtained from the
jurisdictional GST officer prescribed vide Note and Condition 12A of
Notification 131/2016-Cus (N.T.) dated 31st Oct, 2016
as amended by
Notification
59/2017-Cus (N.T.) dated 29th June, 2017. The certificate aimed to ensure that there
was no double neutralisation of taxes by way of credit/refund and drawback.
However, in view of factors such as absence of clarity about jurisdictional GST
officer, time lag between exports and the requisite returns to be filed under
GST laws, etc., the said certificate from GST officer may not be available
immediately at the time of export.
3. Keeping in mind the above difficulties, the Government has amended Note
and Condition 12A of
Notification 131/2016-Cus (N.T.) dated 31st Oct, 2016 by
Notification 73/2017- Cus (N.T.) dated 26th July, 2017 and dispensed with the
requirement of the certificate from GST officer to claim higher rate of
drawback. To facilitate exports, the higher rate of drawback can be claimed on
the basis of self-declaration to be provided by exporter in terms of revised
Note and Condition 12A of aforesaid Notification.
4. Since Notes and Conditions of Notification No. 131/2016-Cus (NT) dated
31.10.2016 (as amended) are integral part of the rates of drawback given under
the Schedule to said Notification, accordingly in terms of the Section 75(3) of
the Customs Act, 1962 and Rule 5(2) of the Customs, Central Excise Duties and
Service Tax Drawback Rules, 1995, it may be noted that the changes made in Note
and Condition 12A shall be applicable w.e.f. 1st July, 2017 itself. Thus, exports
which have been made from 1st July, 2017 onwards shall be governed by the revised Note
and Condition 12A. For all exports made w.e.f 1st July, 2017 for which higher rate of
drawback is claimed, exporter has to submit the self-declaration in the format
attached. This format is also being suitably included in the EDI shipping bill.
In respect of exports that have already been made, exporters may submit a single
declaration regarding the export products covered in past shipping bills for
which let export order has been given from 1st July, 2017 onwards. This shall be
irrespective of any certificate or declaration, if any, given earlier.
5. Another aspect that may be noted is that there could be cases where export
goods had been cleared from factory, warehouse, etc. prior to 1st July, 2017 but let
export order has not been issued before 1st July,2017. Such goods are not supplies
under GST and accordingly, said Note and Condition 12A is not applicable. For
such goods, the declaration from exporter or certificate from the then Central
Excise officer as applicable in terms of Note and Condition 12 of said
Notification No. 131/2016-Customs (NT) shall continue.
6. As part of audit checks, the need for regular sample checking of the
veracity of declarations accepted for disbursing AIR drawback claims has been
highlighted in Board’s instruction F. No. 603/01/2011-DBK dated 11th Oct, 2013. The
said instruction is reiterated for the purpose of audit checks for above cited
self-declarations. Directorate General of Audit (Central Taxes) is also being
asked to have the declarations given by exporters about nonavailment of
ITC/refund etc. in respect of exports under drawback verified at the time of
audit of these units/exporters. These checks will thus ensure that there is no
double neutralisation of taxes by simultaneous availment of credit/refund and
drawback.
7. In order to further facilitate exporters, it may be ensured that all
pending drawback claims are disposed of on priority and zero pendency be
maintained. Supplementary claims whenever filed should also be processed on
priority.
8. Wide publicity on these aspects may be given by way of issuance of trade
notice and field officers also should be sensitised.
Encl. as above.
Yours faithfully, (Dipin Singla) OSD (Drawback) Tel: 23341480 [F.
No. 609/64/2017-DBK ]
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