Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject – Drawback – Grant of All Industry rate (AIR) of Drawback equivalent to Central Excise duty portion on indigenous inputs used in the manufacture of resultant product exported under DFRC Scheme
Various representations have been received in the Board that Customs House are not granting All Industry Rates of Drawback equivalent to Central Excise duty portion on resultant product exported under DFRC Scheme for want of DFRC licence.
1. The issue has been examined in the Board. Under DFRC Scheme, the operator is under obligation to complete exports before licence under DFRC Scheme is issued to him by the DGFT Authority. Hence, at the time of export, it is not possible on the part of exporter to produce DFRC licence. The EXIM Policy, Circular No. 33/2000-Customs dated 2-5-2000 and 42/2000 dated 12-5-2000 issued by the Board and Note 2 of Customs Notification No. 41/2000 (NT) dated 1-6-2000 clearly provide that exports made under DFRC Scheme would be eligible for AIR Drawback equivalent to Central Excise duty portion on indigenous inputs used in the manufacture of export product.
2. Pending drawback claims of the type mentioned in para 2 above should not be held up for want of DFRC licence and such claims should be processed expeditiously.
3. Suitable standing orders may be issued for information and guidance field staff for strict compliance.
4. Receipt of Circular may please be acknowledged.
