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Simplified procedure - Extension of the scheme to other exporters
fixation of brand rate of drawback without pre-verification
Circular No. 50 dated 22nd
October 1996
"The Simplified brand
Rate Fixation Scheme" under which brand rates of drawback can be determined
without pre- verification of date was announced vide this Ministry's letter
F.No. 609/ 113/ 88- DBK dated 11.10.88. Application form and statements were
also enclosed with the Ministry's said letter. To begin with, the scheme was
applicable to manufacturer - exporters in engineering, chemical and electronic
sectors having regular production of the item for which brand rate is sought. As
per the conditions stipulate under the Scheme, these manufacturer- exporters
should be corporate bodies having a detailed accounting system, which is subject
to statutory audit under the Company Law. Under the Scheme, unless there are any
special reasons, drawback rates are to be fixed without pre- verification of the
date filed, (which should be duly verified by the applicant and Chartered
Accountant/ Chartered Engineers/ Cost Accountant) and the exporter would be
authorised by provisional brand rate letters issued by the Ministry to claim the
drawback rate considered admissible from the concerned Customs House (s). The
date submitted is subject to post-facto checking by the Department for its
authenticity and the rates fixed are also subject to revision on the basis of
such post-cacti verification.
2. The
Scheme was further extended to manufacturers who are exporting through merchant
exporters in terms of Ministry's letter No. 609/ 188/ 92-DBK dated 1.10.92 By
further letter of same number dated 7th Dec., 1992, the scheme was extended to
all sectors and manufacturer exporters of any products proved these manufacturer
exporters were corporate bodies having a detailed accounting system, which is
subject to statutory audit under the Company Law.
3. The
matter has been re- examined. It has now been decided to extend the Simplified
Scheme for fixation of brand rates to such manufacturer exporters also who are
registered partnership firms and produce a Registration Certificate to the
effect. Such registered partnership firms should have been manufacturing export
product for atleast 2 years and should produce a certificate from the
Jurisdictional Asstt. Commissioner of Central Excise to this effect. Such
Certificate shall be valid for a period of one year. Such registered partnership
firms should also produce a certificate from their bankers confirming the
location of the manufacturing premises, their having an account with the bank
for atleast one year and that the bank is satisfied about the financial
soundness of the applicant's firm.
4. All
registered partnership firms opting to avail the benefit of Simplified scheme
for fixation of brand rate shall also be governed by all other conditions of the
scheme, including execution of bond and post- verification of the data furnished
by them. In case they fail to arrange post verification of date within 3 months
of the date of filing their application under the Simplified Scheme, the
facility under the scheme may be withdrawn in all future cases and normal
procedure of pre-verification may be reverted to.
5. The
amended scheme will come into force with effect from 23.10.96. The above change
in Simplified Scheme for fixation of brand rate may please be brought to notice
of exporters through suitable communications.
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