Eximkey - India Export Import Policy 2004 2013 Exim Policy
Customs Duty Drawback Duty Drawback Scheme What is duty drawback

Exporters are allowed to convert their ‘free goods’ shipping bill to Drawback Shipping Bills or DEEC-cum-Drawback shipping bill, after obtaining permission of the Commissioners of Customs under the powers delegated under new proviso to Drawback Rule 12(1) (a). Hence, all such cases will now be disposed of by the concerned Commissioner of Customs at the Customs House at which the shipping bill was filed for export, after receipt of written representation from the exporter. Furthur, all cases of conversion irrespective of the fact whether factual reports in these cases were sent by the Commissioner of Customs or not, may be dealt with by the Customs Houses at their own level.

Before granting the permission for such conversion the Commissioner will take into consideration the following :

(i) whether the shipping bill for which relaxation under Rule 11 of Drawback Rules 1971 or Rule 12 of Drawback Rules 1995 have been sought, have been fully co-related with the relevant DEEC book/advance licence.

(ii) Whether the DGFT had issued any cancellation letter, or in case the licence has not been granted for any technical reasons, whether DGFT/JDFT have issued a rejection letter, in case surrender of the DEEC of the pass book as unutilised.

(iii) Where exports are against an application for advance licence and the licence is yet to be issued whether relevant shipping bill has been co-related with the relevant application/DEEC receipt No. allotted for advance licence.

(iv) Where export goods are manufactured by a supporting manufacturer :

(a) whether benefit of Modvat credit under Rule 57A, or rebate of the dutiable inputs under Rule 12(i) (b) of the Central Excise Rules has been availed by the supporting manufacturer.

(b) Whether supporting manufacturer’s name appear on the relevant shipping Bills or not.

(v) where licence has been cancelled, or not issued, whether the exporter has claimed of the benefit or the conditions mentioned in the relevant drawback schedule/exemption notification/public notice.

(vi) (a) whether the examination of the goods has been carried out at the time of export, and if so, whether test report where required, to establish the entity, is available

(b) all other material particulars of goods for drawback purposes, are available or any other authorized agency report can be accepted in lieu of customs examination.

(vii) in case of scaling down of the value of the licence, exports have not been counted towards discharge of export obligation, whether the evidence in support thereto has been furnished by the exporter.

(viii) in case of export under DEEC, whether the examination of goods has been done keeping in view the requirement of Drawback Rules.

(ix) Whether any input which has not been covered in advance licence through exporter already applied for the same, has been obtained by paying import duty and used in the export product.

(x) Whether the claim is otherwise in order and there is documentary proof to establish the extenuating circumstances seeking conversion of shipping bills.

But where the exporter is required to file an application for brand rate of drawback, relaxation under Drawback Rule 12(1)(a) will not be granted unless the exporter has filed a brand rate application within the relevant time with the Directorate of Drawback.

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