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Eligibility of All Industry Rate (AIR) of Drawback to goods exported
under DFRC Scheme during 1.4.2000 to 31.5.2000
Circular No. 102 dated 1st December 2000
In terms of the EXIM Policy 2000-2001 announced on
31.3.2000, Duty Free Replenishment Certificate (DFRC) Scheme had come into
operation with effect from 1.4.2000 and exports made under it were, inter-alia,
eligible for AIR of Drawback equivalent to the Central Excise Duty portion in
respect of inputs imported and cleared on payment of CVD, provided no CENVAT was
availed. Circular Nos. 33/ 2000-Cus dated 2.5.2000 and 42/ 2000-Cus dated
12.5.2000 refer in this regard. Suitable enabling provision was also
incorporated in General Note 2(b) to Notification No. 41/ 2000-Customs (NT)
dated 1.6.2000 for this purpose.
2. Doubts have been
raised about the eligibility of AIR to exports made under DFRC Scheme during the
period 1.4.2000 to 31.5.2000 because General Note 2(b) to the earlier AIR
notification No. 31/ 99-Customs (NT) dated 20.5.1999, which would be applicable
to exports effected during the said period, has not been amended suitably.
3. The issue has
been examined in Board. The primary objective of AIR notification No. 41/
2000-Customs dated 1.6.2000 was to revise the AIR of Drawback with effect from
1.6.2000 on account of revision of duty rates announced in 2000-2001 Budget.
Since the DFRC Scheme had come into operation on 1.4.2000, while announcing the
new AIR of Drawback, General Note 2(b) to the aforesaid notification was also
suitably amended. The intention of the Government was however, to extend all
benefits of DFRC Scheme for exports made under it after 1.4.2000. Simply because
General Note 2(b) to the earlier AIR notification No. 31/ 99-Customs (NT) dated
31.5.99 was not amended should not be a ground for denial of aforesaid benefit
to exports made under DFRC Scheme during 1.4.2000 to 31.5.2000.
4. It is clarified
that exports made during 1.4.2000 to 31.5.2000 under DFRC Scheme would be
eligible for AIR of Drawback equivalent to Central Excise duty portion (on the
CVD paid on imported inputs) at the rates specified in the Table to earlier
notification No. 31/ 99-Customs (NT) dated 31.5.99 provided no MODVAT (now
CENVAT) was availed.
5. This may be
brought to the notice of the staff concerned and the trade by issuing suitable
standing order and Public Notice respectively.
6.
The receipt of this Circular may please be acknowledged.
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