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Regarding Wrong Availment of DEPB/ Drawback Benefit in respect of Exports
where Imports were made without payment of Customs Duty under Notification No.
32/ 97-Cus. dated 1.4.97
Customs
Circular No. 54 dated 27th August 2002
Kind
attention is invited to DOR Circular No. 26/ 2002-Cus. dated 16.5.2002 on the
subject issue where customs field formations were alerted about cases involving
unintended/double benefit in the form of duty free import of inputs under
Customs Notification No. 32/ 97 and also involving availment of DEPB benefit at
the time of export.
2.
It is given to understand that some unscrupulous exporters have availed
simultaneous benefits of duty free import of inputs in terms of 32/ 97-Cus. as
well as duty drawback. Duty Drawback is available where the inputs gone into the
manufacture of export product have suffered customs/ excise duty. In cases where
inputs are imported in terms of Notification No. 32/ 97-Cus., no customs duty is
paid. Hence, once the party has availed benefit of Customs Notification No. 32/
97, it becomes disentitled to AIR of Drawback.
3.
Due care should be taken by Customs at the time of processing export
consignments under Drawback Scheme so as to ensure that in cases where imports
had taken place on availing the facility of Customs notification No.32/97, no
AIR of drawback is extended. For the purpose of ease of identification of export
consignments where benefit of customs notification No.32/97 was taken at the
time of import, it should be made mandatory for the party to declare this fact
on the body of the shipping bill alongwith details of materials imported free of
duty under 32/97.
4.
Customs field formations under your charge may also be asked to examine
their records to ascertain the number of cases where exporters had availed
simultaneous benefit of 32/97-Cus. and DEPB/ Drawback benefit wrongly. Report
for such cases may be sent in the following format:
S.
No.:
Name
of the Party:
Name
of Export Product:
Bill
of entry No. & date where benefit of 32/97 was availed:
Exports
where DEPB benefit was availed alongwith 32/ 97:
Exports
where Drawback benefit was availed alongwith 32/ 97:
Remarks:
S/B
No. & Declared Amount:
S/B
No & Declared Value:
5.
Suitable trade notice and standing orders for the guidance of trade and
staff may respectively be issued.
6.
Receipt of the Circular may please be acknowledged.
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