| Date: |
22-08-1995
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| Notification No: |
Customs Circular No 94/1995
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Monetary limits for determination/ payment of drawback under rule 7A of the Customs and Central Excise Duties Drawback Rules, 1971 or rule 8 of Customs and Central Excise Duties Drawback Rules, 1995
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Monetary limits for determination/ payment of drawback under rule 7A of
the Customs and Central Excise Duties Drawback Rules, 1971 or rule 8 of Customs
and Central Excise Duties Drawback Rules, 1995
Circular No. 94 dated 22nd
August 1995
Instances have
been brought to the notice of the Board that some Customs Houses are not
allowing drawback where the drawback exceed 2% of the FOB value but it less than
Rs. 5000 per shipment. This practice appears to be based on the misconception
that drawback amount must always exceed Rs. 5000, Rule 7A of the Customs and
Central Excise Duties Drawback Rules, 1971 and corresponding rule 8 of Customs
and Central Excise Duties Drawback Rules, 1995 provide that no amount of rate of
drawback shall be determined in respect of any goods under rule 3, rule 6, or as
the case may be rule 7 if the amount or rate of drawback is less than 2% of the
FOB value thereof, subject to the exception that where the amount of drawback
per shipment exceeds Rs. 5000 it shall be allowed.
2. In
view of the above it is clarified that in all cases, where drawback is more than
2% of the FOB value thereof, the limit of Rs. 5000 is not applicable and in such
cases drawback is required to be paid so long as the amount exceeds the minimum
limit of Rs 50 specified in Section 76 of the Customs Act. Similarly, in all
cases where the amount of drawback payable is Rs. 5000 or more, the limit of 2%
of FOB value is not applicable and in such cases drawback is payable even if it
is less than 2% of the FOB value. This clarification may please be brought to
the notice of all concerned for proper processing of drawback claims.
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