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Introduction: The Ministry of Finance, Department of Revenue, has issued instructions regarding the non-applicability of drawback and measures to reduce physical interface while processing claims. These instructions aim to streamline procedures for exporters and customs brokers, enhancing efficiency and reducing manual interventions.

Detailed Analysis:

1. Queries on Drawback Applicability:

  • The Ministry highlights queries raised during the processing of drawback claims concerning the applicability of drawback rates to certain exports.
  • Exporters are reminded of specific conditions under notification no. 77/2023-Customs (NT) regarding drawback rates, particularly for commodities manufactured or exported by units in Export Oriented Units (EOUs) or Special Economic Zones (SEZs).
  • Drawback Section officers raise queries to confirm whether exported items are purchased from EOUs/SEZs, leading to manual interventions and physical visits by customs brokers and exporters.

2. Reduction of Physical Interface:

  • The Permanent Trade Facilitation Committee (PTFC) discussed concerns raised by the Chennai Custom Brokers’ Association (CCBA) regarding the number of queries raised by drawback section officers.
  • To address these concerns and reduce manual interventions, it is proposed to discontinue the requirement for submitting declarations to the drawback section.
  • Exporters are advised to upload a self-declaration on the e-Sanchit platform, certifying the non-manufacture or export of goods by units licensed as EOUs/SEZs.
  • This procedural change aims to minimize the need for physical visits to the drawback section and streamline the process of addressing queries.

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GOVERNMENT OF IINDIA
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE
OFFICE OF THE COMMISSIONER OF CUSTOMS, CHENNAI – IV (EXPORT)
OFFICE OF THE COMMISSIONER OF CUSTOMS, CHENNAI – IV (EXPORT)

F. No.: CUS/DBK/MISC/1138/2023-DBK

Public Notice No. 18/2024 Date:25-04-2024

Sub: – Queries raised on non applicability of drawback while processing the claims, certain instructions towards reduction of physical interface -Reg.

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With reference to the above-mentioned subject, attention of exporters, customs brokers and other stakeholders is invited to para 9 (iii) and 9 (iv) of notes and conditions of notification no. 77/2023-Customs (NT) dated 20.10.2023 regarding revised all industry rates of duty drawback wherein it has been provided that:

“(9) The rates of drawback specified in the said Schedule shall not be applicable to export of a commodity or product if such commodity or product is, –

(iii) manufactured or exported by a unit licensed as hundred per cent Export Oriented Unit in terms of the provisions of the relevant Foreign Trade Policy;

(iv) manufactured or exported by any of the units situated in Free Trade Zones or Export Processing Zones or Special Economic Zones; “

2. Accordingly, in order to confirm whether the goods under export were manufactured or exported by a unit licensed as hundred per cent Export Oriented Unit in terms of the provisions of the relevant Foreign Trade Policy or manufactured or exported by any of the units situated in Free Trade Zones or Export Processing Zones or Special Economic Zones; queries were being raised by the Drawback Section, CH-IV Commissionerate.

3. In this connection, during the Permanent Trade Facilitation Committee (PTFC) meeting held on 10.03.2024 , the following agenda point was put forth by the Chennai Custom Brokers’ Association (CCBA) were discussed.

“Number of queries are being raised by the officers of drawback section to ‘clarify whether item under export is purchased from EOU/SEZ or otherwise’. CBs/Exporters are asked to approach section along with declaration. Therefore, it is requested and suggested that for the said query a reply in the system itself has to be accepted in connection with the clarification whether purchased from EOU/SEZ and submission of any declaration to the drawback section has to be discontinued to avoid manual intervention.”

In this regard, it was proposed to issue a necessary Public Notice (PN) bringing out the procedure and necessary steps with respect to the above point put forth by CCBA.

4. In pursuance of the above, the exporters are advised to upload a duly signed self-declaration in the document type – Self-Declaration on Customs Cases (Code 022C01) of supporting documents on e-Sanchit platform while filing the shipping bills certifying that the goods under export were neither manufactured or exported by a unit licensed as hundred per cent Export Oriented Unit in terms of the provisions of the relevant Foreign Trade Policy nor manufactured or exported by any of the units situated in Free Trade Zones or Export Processing Zones or Special Economic Zones ,as the case may be.

5. This would reduce the requirement of raising query by officers and customs brokers/ exporters visiting the drawback section physically in this regard. Any difficulties or issues faced in the implementation of this public notice may be brought to the notice of the undersigned for further assistance.

To,

All Exporters, Trade Associations.

Copy to:

1. The Chief Commissioner of Customs, Chennai Customs Zone – for kind information.

2. The Principal Commissioner/ Commissioner of Customs, Chennai – I, II, III, VII VIII

3. EDI – for uploading in Intranet and Website.

4. Correspondence Section.

5. Hindi Cell.

6. CHS – for display in the Notice Board.

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