Circular No. 74/2000-Cus.

dated 7-9-2000

F.No. 605/164/2000-DBK

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

Subject : Drawback- PMV – verification at Customs House

   Representation has been received in the Board that verification of (Present Market Value (PMV) under Drawback Scheme) are being routinely conducted by the Custom House, which is causing unnecessary delay in grant of drawback to the exporters

   2. It is quite likely that frequent PMV verification would generate resentment and complaints of harassment from the exporting community. However, it may be appreciated that the statutory provision of section 76(1)(b) would be attracted & would yield substantial results only in those cases where the declared FOB value is many multiples of the PMV of the export product, as normally the drawback rates do not exceed 15-16%.

   3. The issue has been examined in the Board. It has been decided that there is a need amongst the field formations to exercise proper discretion and vigilance while initiating PMV enquiries. PMV enquiry should be ordered only in such cases where prima facie the restrictions placed by Section 76(1)b) would be violated. PMV enquiries which do not yield any desirable results would only raise the transaction time and transaction cost of the exporters, which should be avoided.

 4. The contents of this Circular may be brought to the notice of the operational staff in the Custom House by the concerned Commissioners.

More Under Custom Duty

Posted Under

Category : Custom Duty (7038)
Type : Circulars (7812) Notifications/Circulars (32222)

Leave a Reply

Your email address will not be published. Required fields are marked *