DBK Circular No. 13/97-Cus.
F. No. 609/228/97 – DBK
Government of India
Ministry of Finance
Department of Revenue, New Delhi
Subject : Duty Drawback – All Industry Rates of Drawback effective from 1.6.1997 – Instructions regarding.
The Ministry has announced the new All Industry Rates of Drawback effective from 1.6.1997 vide Notification No. 22/07-Cus(NT) dated 30.5.97.
2. A key feature relates to the further harmonising of the Drawback Table with the Customs Tariff Act, 1975. The existing description of the export goods have as far as possible been retained in the existing Table, except where the same was not possible on account of the earlier entry being a generic one. In such cases, the entry has been split to cover the products under the appropriate Chapter Heading of the Customs Tariff Act, 1975, and retaining the common rate Duty Drawback against all the split up entries.
3. Headings/Sub-headings in the new column No. 2 of the Drawback Table indicate the Headings/Sub-Headings of the Customs Tariff under which the export products would be classifiable if imported. Accordingly, General Note No. 10 of the above Notification, has been re-structured to provide a corresponding correlation between the General/Sub Serial Nos. of the Table with the Headings / Sub-Headings of the said First Schedule.
4. Commissioners are requested to closely monitor the Drawback payments under the revised Headings and wherever any excessive variation of amounts being disbursed, are noticed, the same may be immediately brought to the notice of the directorate through a separate reference.
5. Similarly, if there are any errors noticed in the harmonised entries, the same may also be immediately brought to our notice through a D.O. letter so that correct Heading/Sub-Headings are indicated in Column No. 2 of the table.
6. All the staff concerned may be advised to go through the changes made in the All Industry Rates of Drawback carefully to avoid any possible error. Any difficulty in the implementation of the Drawback Rate may please be intimated to the undersigned by name either through Telex or Fax Message or by D.O. letter.
7. As regards the need for production of a Certificate by the exporter regarding availment or otherwise of MODVAT under General Note No. 11 of the said All Industry Rates of Drawback Notification, necessary instruction are being issued through a separate Circular. Commissioners are also requested to forward a list of export products covered by the Drawback which are unconditionally exempt from payment of Central Excise duty.
8. Your attention is also invited to the revised Customs and Central Excise (Duty Drawback) Rules, 1995, issued under Customs Notification No. 37/95-Customs and Central Excise (NT) which have already been circulated to you. The changes made therein, should also be kept in mind and any difficulty experienced in their implementation or changes necessary, should be brought urgently to the notice of the undersigned.