Circular No. 23/2001-Customs
18th April, 2001.
Government of India
Ministry of Finance
Department of Revenue
Sub: Declaration under Rule 12(1)(a)(ii)of Drawback Rule for availing AIR of Drawback.
Certain Export Promotion Councils have brought to the notice of the Board that certain Custom 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 consiqnments exported by individual exporters under claim for Drawback at All Industry Rate and this is creating under delay in disbursement of drawback and harassment to genuine exporters.
1 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 cross section of exporters and the average incidence for duties suffered on such imports. 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/Drawback Claim.
2 Therefore, it is clarified that, as a matter of rule, no evidence of actual duties suffered or imported or indigenous nature of inputs, 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.
3 Board will like to review if there is any need to amend the aforesaid Rule 3 – Declarations made under Rule 12, for claiming All Industry Rate of Drawback. As only recently such problems are said to have been found by certain exporters through this Rule in existence for years, you should review the practice followed in your Custom House and send us a report if any such proof of payment of duties etc. for claiming AIR has been asked for and if so the reasons thereof. If any investigation in particular cases have shown any abuse of the All Industry Rate facility. Your considered suggestions, if any, for amendment to the aforesaid Rules may also be sent so as to reach Drawback Directorate by 15th May, 2001.