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Exports under DEPB Scheme-Reimbursement of Additional Customs Duty (CVD)
paid in cash on imported inputs & excise duty paid on indigenous inputs for
exporters of non-excisable products - Brand Rate of Drawback Admissible
Circular No. 68dated 2nd December 1997
Various
representations have been received from Trade/ Exporters that wherever final
goods exported by them are not liable to Central Excise duty, in such cases, the
exporters are unable to avail of Modvat Credit of additional customs duty (CVD)
paid in cash on imported inputs, or excise duty paid on indigenous inputs,
utilised in the production of export goods; and thus the duties suffered by them
are not fully compensated to them at the time of export.
2. In
view of the above, the issue has been examined and it has been decided that the
exports made under D.E.P.B. Scheme of those products which cannot avail Modvat
Credit of the additional duty of Customs (CVD) paid in cash on imported inputs,
or excise duty paid on indigenous inputs, since no excise duty is payable on the
export goods, will be eligible for payment of Brand Rate of Drawback to be fixed
by the Directorate of Drawback against additional customs duty/ excise duty
suffered on inputs, on submission of proof of payment of duty.
3. Accordingly,
drawback will be payable to such exporters under rule 6(1)/ 7(1) of the Customs
and Central Excise Duties Drawback Rules, 1995, at the rate fixed on specific
application. The procedure laid down under Drawback Rules, 1995, will have to be
followed for fixation of Brand rates of Drawback. Such exporters will have to
apply to the Directorate of Drawback for fixation of Brand rates on exports
under DEPB. To enable the exporters to file their application for Brand Rates,
they may be permitted to file 'DEPB- cum-Drawback Shipping Bill'. However, under
no circumstances, the exporters are allowed to claim All Industry Rate of
Drawback.
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