There are two types of drawback. One is called drawback under Section 74 of the Customs Act, 62 which allows drawback of duty paid on goods originally imported on payment of duty and subsequently re-exported. The manner and time limit for filing the claims are governed by "Re- export of Imported Goods (Drawback of Customs duties) Rules, 1995.
1. The other scheme is payment of drawback under Section 75 and Rules made thereunder at specified rated on export of goods manufactured in India. The manner and time limit for filing the claims are prescribed under the Customs and Central Excise Duties Drawback Rules 1995 as amended from time to time.
2. The Central government notifies the Drawback rates for various products either on a general basis (all industry rates) or for individual exporters( brand rates) as the case may be. Drawback sanctioned under section 75 has a two tier system involving (i) fixation of rates by the Directorate of Drawback in the Central Board of Excise and Customs and (ii) disbursement of drawback amount by the Customs Houses and/ Central Excise Commissionerate.
SUPPORTING DOCUMENTS REQUIRED FOR PROCESSING THE CLAIM.
1. Triplicate of the Shipping Bill
2. Copy of the Bank Certified Invoices.
3. Copy of the Bill Lading / Airway Bill
4. Sixtuplicate Copy of AR-4 wherever applicable
5. Freight and Insurance certificate wherever the contract is CIF / C&F
6. Copy of the Test report where the goods are required to be tested
7. Copy of the Brand rate letters where the drawback claim is against the Brand rate
8. Mate receipt
9. Copy of the Contract or Letter of credit as the case may be
10. Modvat Declaration wherever applicable
11. Any declaration required as per foot note of the Drawback schedule
12. Work sheet showing the drawback amount claimed
13. DEEC Book and licence copy where applicable.
14. Transshipment certificate where applicable
15. Proof of foreign agency commission paid if any
16. Blank acknowledgement card in duplicate
17. Pre – receipt for drawback amount on the reverse of Shipping Bill duly signed on the Rs1/- revenue stamp
The claims are settled and passed by the appraiser if the amount sanctioned is below Rs 1,00,000/- and by the Assistant Commissioner, if the amount of drawback exceeds Rs1.00.000/-. After pre-audit, the cheques are issued to the designated banks for credit to the exporters account or handed over to the authorized representative of the exporter. For further details refer to the Public Notices issued by the concerned Custom Houses/ Central Excise Commissionerate.
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