Duty drawback on export of goods

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nitesh aggarwal (Querist)
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27 December 2014 can we claim both AIR ( all india rate) drawback and refund of service tax and input excise duty used in relation to export of goods or we could claim only either of above pls provide suggestion

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 January 2015 Eligibility for Drawback:

Supplies will be eligible for deemed export drawback in terms of the provision of Foreign Trade Policy of Central Excise duty paid on inputs/components, provided CENVAT credit/rebate has not been availed of such duty paid by supplier of goods. A declaration to this effect, from supplier of goods, shall be submitted by applicant. Such supplies shall however be eligible for deemed export drawback on customs duty paid on inputs/components.

The term drawback is applied to a certain amount of duties of Customs/central excise, some times the whole, some times only a part remitted or paid by Government on the exportation of the commodities on which they were levied. To entitle goods to drawback, they must be exported to a foreign port, the object of the relief afforded by the Drawback being to enable the goods to be disposed of in the foreign market as if they had never been taxed at all. For Customs purpose drawback means the refund of duty of customs and duty of central Excise that are chargeable on imported and indigenous materials used in the manufacture of Exported goods.

GOODS ELIGIBLE FOR DRAWBACK

This scheme applies to

a. export goods imported into India as such

b. export goods imported into India after having been taken for use

c. export goods manufactured / produced out of imported material

d. export goods manufactured / produced out of indigenous material

e. Export goods manufactured /produced out of imported or and indigenous materials.

TYPES OF DRAWBACK

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

read the following link:

http://www.cbec.gov.in/customs/cs-circulars/cs-circulars11/circ42-2k11-cus.htm