Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
New Delhi, the 24th June, 2010
CIRCULAR NO. 13/2010-CUSTOMS
To
All Chief Commissioners of Customs/Central Excise/Customs & Central Excise.
All Commissioners of Customs/Customs (P)/Customs & Central Excise /Central
Excise.
All Director Generals of CBEC,
Chief Departmental Representative of Customs Excise & Service Tax Appellate
Tribunal.
Sub: Amendment of the Customs, Central Excise & Service Tax Drawback Rules,
1995 and the Re-Export of Imported Goods (Drawback of Customs Duties) Rules,
1995- reg.
Sir/Madam,
The undersigned is directed to say that the Board has amended the Customs,
Central Excise & Service Tax Drawback Rules, 1995 and the Re-Export of Imported
Goods (Drawback of Customs Duties) Rules, 1995 vide Notifications
No.
49/2010-Customs (N.T) and
48/2010-Customs (N.T) both dated 17th June, 2010. The
rules have been amended to make the time limits prescribed for making various
applications/claims of drawback under the Rules more exporter friendly, to
liberalize granting of extensions in case of delays and to delegate greater
powers in that regard to the field officers at the level of the Assistant/Deputy
Commissioner of Customs. These are trade facilitation measures. The
notifications are available on CBEC website and may be perused for details. The
important changes that have been made in the Rules are as discussed below.
2. The time limits for filing applications for fixation of Brand Rate of
Drawback, supplementary claims of Drawback and for claiming drawback under
section 74 of the Customs Act, 1962 have been revised as under:
| Type of claim |
Previous time limits
|
Revised time limits |
| Brand rate claim(Rules 6 and 7 of Customs, Central
Excise & Service Tax Drawback Rules, 1995) |
The claim was required to be filed within 60 days
from the date of Let Export Order. This time limit could be extended by
30 days by the Commissioner if he was satisfied that the exporter was
prevented by sufficient cause from filing the application within the
aforesaid time period. |
The claim may be filed within 3 months from the date
of Let Export Order. This time limit may be extended by 3 months by the
AC / DC and by another 6 months by the Commissioner. |
| Supplement-ary claim(Rule 15 of Customs, Central
Excise & Service Tax Drawback Rules, 1995) |
The claim has to be filed within 3 months from the
date of publication of All Industry Rate (AIR) of Drawback or from the
date of communication of the brand rate of drawback. This period may be
extended by another 9 months by the AC/DC if he is satisfied that the
exporter was prevented by sufficient cause from filing application
within the aforesaid time period. |
The claim may be filed within 3 months from the date
of publication of All Industry Rate (AIR) of Drawback or from the date
of communication of the brand rate of drawback. This period may be
extended by 9 months by the AC/DC and by another 6 months by the
Commissioner. |
| Drawback on Re-export of imported goods [ Rule 5 of
the Re-Export of Imported Goods (Drawback of Customs Duties) Rules,
1995] |
This claim has to be filed within 3 months from the
date of Let Export Order. The period may be extended further by 3 more
months by the AC/DC in case he has satisfied that the exporter was
prevented by sufficient cause from filing the case in time.
|
This claim may be filed within 3 months from the date
of Let Export Order. The period may be extended by 3 months by the AC/DC
and by another 6 months by the Commissioner. |
It may be seen from the above that under the amended rules an exporter can
file an application for fixation of Brand Rate of Drawback under Rule 6 and 7
within a maximum period of 1 year including the extensions. Similarly, he can
file supplementary claim of drawback within a maximum period of 18 months
including extensions and a claim of drawback under Section 74 of the Customs
Act, 1962 within a maximum period of 1 year including extensions.
In all the above cases, the AC/DC or the Commissioner may grant the
extension on the basis of an application and after making such enquiry as they
think fit. The condition that the exporter should have been prevented by
sufficient cause from applying within the prescribed time period has been
removed. In case, the AC/DC or the Commissioner decide not to grant extension,
they may do so after
recording in writing the reasons for such refusal and the same may be
communicated to the applicant through a speaking order. However, as advised by
the Board vide Circular
No. 14/2003-Cus dated 06.03.2003, delays may generally
be condoned on receipt of the exporter’s application in this regard.
A new feature that has been incorporated in the Rules is that in all the
above cases an application fee equivalent to 1% of the FOB value of exports or Rs. 1000/-, whichever is less, shall be payable for applying for grant of
extension by the AC/DC and an application fee of 2% of the FOB value of exports
or Rs. 2000/-, whichever is less, shall be payable for applying for grant of
extension by the Commissioner.
The applications for fixation of Brand Rate of drawback have to be filed
in the office of the Commissioner of Central Excise (or Customs & Central
Excise) as provided in rules 6 and 7 of the Customs, Central Excise & Service
Tax Drawback Rules, 1995 and as already advised vide the above mentioned
circular. If there is a delay in making the application, the Assistant/Deputy
Commissioner of Central Excise (Technical) or such other Assistant/Deputy
Commissioner in the office of the Commissioner of Central Excise who has been
assigned the work relating to fixation of Brand Rate of drawback, may grant the
first extension of upto 3 months. If the delay is of more than 3 months,
extension may be granted only by the Commissioner. The applications for
supplementary claims of drawback, drawback under section 74 of the Customs Act,
1962 and for repayment of drawback in terms of rule 16A(4) of the Customs,
Central Excise & Service Tax Drawback Rules, 1995 may be made to the Assistant
Commissioner of Customs at the port of export.
Further, Rule 16A (4) of the Customs, Central Excise & Service Tax
Drawback Rules, 1995 has been amended to provide that in cases where the sale
proceeds are realized by the exporter after the amount of drawback has been
recovered from him under Rule 16A (1) of the Drawback Rules, 1995 due to non
realization of export proceeds, he shall be allowed to produce evidence of such
realization within a period of 3 months from the date of realization of export
proceeds instead of the previous provision of one year from the date of recovery
of amount of drawback provided the foreign exchange has been realized within the
period permitted by RBI.. The period may be extended by the Commissioner of
Customs by 9 months subject to the condition that the amount has been realized
on a date covered by the extensions of time limit given by the RBI for realizing
export proceeds. Application fee equivalent to 1% of the FOB value of exports or Rs. 1000/-, whichever is less, shall be payable for applying for grant of
extension by the Commissioner.
- A suitable Public Notice and Standing Order may be issued for the guidance
of the trade and staff. Difficulties faced, if any, in implementation of the
Circular may be brought to the notice of the Board at an early date.
Receipt of the Circular may kindly be acknowledged.
Yours faithfully,
(Pramod Kumar)
Technical officer (Drawback)
F.No.609/51 /2010-DBK