Government of India
Ministry of Finance, Department of Revenue
Central Board of Indirect Taxes & Customs
4th floor, Jeevandeep Building,
New Delhi, dated 12th April, 2018
Export Promotion Councils/ Commodity Boards/ Trade and Industry Associations/Chambers of Commerce (as per list attached)
Subject: Request for views/suggestions and data for review of All Industry Rates (AIR) of Duty Drawback for the year 2018
It is to inform that the Government proposes to review the All Industry Rates (AIRs) of Duty Drawback for the year 2018 with reference to the incidence of Customs and Central Excise duties on goods manufactured for export.
2. In this connection, Export Promotion Councils/ Commodity Boards/ Trade and Industry Associations/Chambers of Commerce are requested to provide data w.r.t. inputs used in the manufacture and the respective export products in the specified Proforma comprising three parts viz. Proforma – 1(A) & (B), II, and III. The consumption of input materials and incidence of duties against the export of a particular product is to be filled in Proforma I. Proforma II requires information on the actual cost, including the break-up, incurred for making the export product and the sales realization on such export product. Proforma III requires details of captive power used for manufacturing the export product.
3. While providing the above data, care should be taken regarding the following aspects –
(a) Data provided should be complete for the exports made during the period October 2017 to March 2018. For a particular manufactured export item, the details of all input(s) that are used in the manufacture of all types/styles of that particular export item should be indicated.
(b) The incidence of duty should be restricted to Customs duty on the inputs and Central Excise duty on petroleum products as specified in Schedule- IV of the Central Excise Act, 1944. The incidence of other taxes/duties such as GST, States/UT taxes, etc. should not be included for calculation of total incidence of duties for the purpose of duty drawback scheme.
(c) Data submitted should pertain to at least five units for each export product so as to be representative of the industry. The units should be selected from amongst the small, medium as well as large manufacturer exporters.
(d) Data provided should be of manufacturers/ manufacturer exporters and it should be certified by the manufacturer and its Chartered Accountant/ Cost Accountant.
(e) The data should be supported by relevant documents such as Bills of Entry of imported inputs, Shipping Bills of export product, relevant Central Excise invoices, etc.
(f) The data provided should pertain to only those manufacturers/units that are ready to have their records and production processes subjected to inspection by Customs/ Central Excise Department if required for the purpose of verifying the correctness of information.
4. In addition to above, your views/suggestions for rationalisation of entries in the AIR Drawback Schedule, including for those tariff items where specific data has not been provided earlier, may also be sent along with justification.
5. It is requested that the above information may be sent to Drawback Division within 4 weeks’ time.
Your response may also be sent on E-mail – firstname.lastname@example.org.
(Nitish K Sinha)
Joint Secretary to the Govt. of India
Encl: List and Proforma