dear members, can you please advise whether duty drawback is permissible for exports made under ARE-2. The raw materials have been procured without payment of duty and the finished goods are cleared for export without payment of duty under ARE-2.
As per notes and conditions no:10 of Notfn:110/2015 (NT) cus dated 16th Nov 2015, the following are ineligible for duty drawback
(10) 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 -
(a) manufactured partly or wholly in a warehouse under section 65 of the Customs Act, 1962 (52 of 1962);
(b) manufactured or exported in discharge of export obligation against an Advance Licence or Advance Authorisation or Duty Free Import Authorisation issued under the Duty Exemption Scheme of the relevant Export and Import Policy or the Foreign Trade Policy;
(c) manufactured or exported by a unit licensed as hundred per cent. Export Oriented Unit in terms of the provisions of the relevant Export and Import Policy or the Foreign Trade Policy;
(d) manufactured or exported by any of the units situated in Free Trade Zones or Export Processing Zones or Special Economic Zones;
(e) manufactured or exported availing the benefit of the notification No. 32/1997Customs, dated 01st April, 1997.
Further 11 states as below;
(11) The rates and caps of drawback specified in columns (4) and (5) of the said Schedule shall not be applicable to export of a commodity or product if such commodity or product is
(a) manufactured or exported by availing the rebate of duty paid on materials used in the manufacture or processing of such commodity or product in terms of rule 18 of the Central Excise Rules, 2002;
(b) manufactured or exported in terms of sub-rule (2) of rule 19 of the said Central Excise Rules, 2002.
Can you please advise us whether the Duty drawback is permissible for such cases on account of the above.
CAclubindia
