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.
PROCEDURE TO CLAIM DRAWBACK UNDER SECTION 74
Drawback claims under Section 74 of the Customs Act are now being processed manually. To claim drawback under Section 74, the exporter should file the shipping bill under claim for drawback in the prescribed FORM and after assessment the goods are to be examined by the Customs officers for purposes of physical identification. After shipment, the claim is filed in the department, for sanction of drawback. The pre-receipted drawback payment order has to be forwarded to the drawback department upon which cheque is issued. If the information submitted by the exporter is insufficient to process the claim, a deficiency memo will be issued to the exporter seeking further information or documents to process the claim. On compliance the claims will be processed in the usual manner.
SUPPORTING DOCUMENTS REQUIRED FOR PROCESSING DRAWBACK CLAIM UNDER SECTION 74
a. Triplicate copy of the Shipping Bill bearing examination report recorded by the proper officer of the customs at the time of export.
b. Copy of the Bill of entry or any other prescribed documents against which goods were cleared for importation.
c. Import invoice.
d. Evidence of payment of duty paid at the time of importation of goods.
e. Permission from the Reserve Bank of India for re-exports of goods, wherever necessary.
f. Export invoice and packing list.
g. Copy of the Bill of Lading or Airway bill.
h. Any other documents as may be specified in the deficiency Memo.
FORM FOR CLAIMING DRAWBACK ON RE-EXPORT OF DUTY PAID GOODS UNDER SECTION 74 OF CUSTOMS ACT, 1962
PROCEDURE FOR CLAIMING DRAWBACK ON EXPORT OF BAGGAGE UNDER SECTION 74
If duty paid goods are to be exported as baggage under claim for drawback, a Formal declaration has to be filed by the passenger which is deemed to be an entry for export and thereupon an order permitting clearance of the goods for export is made by proper officer. The following procedure to be followed
Passengers intending to re-export goods imported and cleared as baggage item under a claim for drawback of duty should furnish with Supdt. of Customs Airport, a declaration in the prescribed FORM, in duplicate. Passengers should also produce at the time of re-export of the goods duty payment documents relating to goods cleared by them as baggage.
The goods are examined by the Supdt. of Customs and on being satisfied with the identity of the goods he will permit export and also recommend drawback of duty due on the goods by making suitable endorsement on the examination and also make a suitable note on the duty payment documents produced by the passengers.
The duplicate copy of the declaration cum examination export along with duty payment document is returned to the passenger and the original copy transmitted to the Asst./Deputy Commissioner drawback Section.
If the payment is to be made to a person other than the passenger, an authority letter as included in the declaration FORM should be furnished by the passenger duly authenticated before the Supdt. Customs: a pre – receipt on a revenue stamp should also be tendered by him.
The passenger or his authorised agent should file his/her drawback claim along with the copy of the declaration at (a) above and the duty payment document the office of the Asst./ Deputy Commissioner of Customs, Drawback Section. The cheque granted as draw back of duty is sent to the specified address.
PROCEDURE FOR CLAIMING DRAWBACK ON GOODS EXPORTED BY POST UNDER SECTION 74:
Where goods are to be exported by post under a claim for drawback, the outer packing carrying the address of the consignee shall also carry in bold letters the words "DRAWBACK FOR EXPORTS". The exporter shall deliver to the Postal Authorities along with the parcel or package a claim in the FORM in quadruplicate duly filled in.
The date of receipt of the aforesaid claim FORM by the proper officer of Customs from the postal Authorities shall be deemed to be date of filing of drawback claim by the exporter for the purpose Section 75 A. . The proper officer of Customs shall give an intimation of the same to the exporter in the prescribed form.
In case the aforesaid claim for is not complete in all respects, the exporter shall be informed of the deficiencies therein within fifteen days of its receipt from postal authorities by a deficiency memo in the prescribed FORM and such claim shall be deemed not to have been received.
When the exporter complies with the requirements specified in the deficiency memo, within thirty days of receipt of the deficiency memo, he shall be issued an acknowledgement by the proper officer in the prescribed FORM. The date of acknowledgement shall be deemed to be date of filing the claim for the purpose of Section 75A.
FORM FOR CLAIM OF DRAWBACK UNDER SECTION 74 OF THE CUSTOMS ACT 1962 ON GOODS EXPORTED BY POST ( Rule 3 of Re-export of Imported goods (Drawback of Customs Duties) Rules, 1995
TIME – LIMIT UNDER SECTION 74
In order to claim drawback under Section 74 the goods should be entered for export within two years from the date of payment of duty on the importation thereof. Provided that in any particular case the period of two years may on sufficient cause shown be extended by the by the Central Board of Customs and Central Excise by such period as it may deem fit.
The time limit have to be computed from the date of payment of duty up to the date of entry of goods for export under Sec 50 of the Customs Act for export by air or sea, under Section 77 for baggage items and Under Section 83 of the Customs Act for export by post
The claims should be filed in the manner prescribed under Rule 5 of Re-export of Imported Goods(Drawback of Customs Duties) Rules,1995, read with Public Notices issued by the Custom Houses. The time limit for filing the claim is three months from the date of let export order. If the exporter was prevented by sufficient cause from filing the claims within three months, the Asst. Commissioner of Customs can relax the time limit by three months. .
PROCEDURE FOR CLAIMING DRAWBACK UNDER SECTION 75 OF THE CUSTOMS ACT UNDER THE MANUAL SYSTEM:
For the purpose of claiming drawback, the exporter is required to file a drawback-shipping bill in the prescribed Format as required under Rule 13 along with the necessary declaration. The goods after assessment are examined by the officers posted in the Examination Shed as required for each individual case. The examination report will indicate the nature of goods in terms of drawback schedule for classification and application of correct rate. Samples may have to be drawn for testing by lab in respect of chemicals, synthetic fabrics’ etc as specified from time to time to confirm the declarations in the export documents. The triplicate Copy if the drawback shipping bill which contain the examination report is the claim copy
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
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