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Duty Drawback � Declaration under Rule 12(1)(a)(ii) of Drawback Rules
Circular No. 24 dated 20th April 2001
Export Promotion
Councils have brought to the notice of the Board that certain Customs Houses are
relying on the first proviso to Rule 3 of Customs & Central Excise Rules,
1995 & Declaration filed by exporters under Rule 12(1)(a)(ii) of the said
Rules to seek evidence of payment of duties and evidence of import of inputs
against individual consignments exported by individual exporters under claim for
Drawback at All Industry Rate and this is creating undue delay in disbursement
of drawback and harassment to genuine exporters.
2.
The issue has been examined in the Board. All Industry Rate is based on
the concept of averages, wherein the drawback rate itself as well as its customs
and excise portions are based on weighted averages of consumption of imported/
indigenous inputs of a representative cross section of exporters and the average
incidence for duties suffered on such inputs. These rates have no relation to
the actual input consumption pattern and actual incidence suffered on inputs of
a particular exporter or individual consignments exported by any particular
exporter under AIR/ DBK Claim.
3.
Therefore,
it is clarified that, as a matter of rule, no evidence of actual duties suffered
on imported or indigenous nature of inputs used, even if the All Industry Rate
has customs portion, should be insisted upon by the field formations alongwith
declaration filed by exporters under Rule 12(1)(a)(ii) of the Customs &
Central Excise Duties Drawback Rules, 1995.
4.
It is also pertinent to mention that the intention of the first proviso
to Rule 3 is essentially to provide a guideline to the Directorate of Drawback
as to how All Industry Rates of drawback will be determined in certain
situations. It is not intended for the field formations to use this rule for
arbitrarily altering the All Industry Rates of Drawback in the case of
individual exporters for individual consignments.
5.
Brief
details of cases where proof of import of duty payment has been insisted upon
for claims under All Industry Rates by the Customs Houses may be brought to the
notice of the Board.
6. However, if the
Department has any documentary evidence of fraud, the Customs Houses may
initiate proper investigation with the prior written approval of the
Commissioner.
7.
This is in supersession of Board's Circular No. 23/ 2001-Cus. issued on
18.4.2001 on the above subject.
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