8. Drawback against Export by Post

Drawback Claim Form

In case of drawback parcels, the exporters need to file prescribed application Form (in quadruplicate). Its format is at Annexure 26.

Form AR4

This Form is to be filled in quadruplicate in case of goods to be exported by post under excise rebate. The duplicate copy of these duly processed Forms should be affixed with sufficient postage stamps at the rate of Rs. 0.20 per packet, before presentation to Post Office. (Also see ‘declarations’ in Chapter 6.)

Customs Declaration Form

The CDF is used for export by post, and available in post offices.

Booking at the Post Offices

Parcels of trade goods including those against which customs duty drawback claim is being made, may be presented to any post office in India for dispatch to any permissible destination abroad. However, all parcels must be addressed to the branch or correspondent of the exporter’s bank in the country concerned, unless the goods are covered by a Letter of Credit (L/C) or where advance payment has been received or specially permitted by the RBI. The parcel should be made up according to given specifications and properly addressed and weigh to the specified limits as detailed in the book ‘Export-What, Where, How’ by Paras Ram. These parcels are routed through the main post offices of exchange located at Bombay, Calcutta, Delhi, Jaipur and Madras or through the sub-offices of exchange at Ahmedabad, Bangalore and Cochin, etc.

Declare on the outer packing carrying the address of the consignee, in bold letters the words: “Drawback Export”.

Documents

The drawback parcels should be accompanied with the following documents: -

(i) Drawback Claim Form (in quadruplicate) as at Annexure 26.

(ii) PP Form (in duplicate) duly countersigned by the exporter’s bank or RBI. In case of jewellery items, it should be countersigned by the customs as well.

(iii) Export licence, Quota certificate, if applicable.

(iv) AR4 Form, in duplicate, duly processed by the Central Excise Authorities.

(v) Invoice (two copies)

(vi) Customs declaration form (triplicate). One copy of this form should be pasted on the parcel.

(vii) A self-addressed envelope (with sufficient) postage stamps affixed on it to cover charges of registration and transmission back to the sender (exporter). Every care should be taken to attach the envelope carefully in order to avoid its loss in transit.

The following additional documents should also be sent along with parcel.

(i) Commercial invoice for canalised items must be got endorsed by the Canalising Agency concerned.

(ii) Packing list in case there is more than one parcel in one consignment.

(iii) Quality control and pre-shipment inspection certificate, if required.

(iv) Any other document prescribed for the export/claim of drawback for/against the concerned product.

Processing at Post Office

The booking clerk at the Post Office will receive the parcel and issue necessary receipt. The number and date of parcel will be entered in the concerned forms. He will also return the 4th copy of the Drawback Claim Form to the exporter.

All parcels will, then, be passed on to the Foreign Post Office concerned for customs clearance before the final dispatch to overseas destinations.

Customs Examination

Date of Receipt. The date of receipt of the aforesaid Drawback Claim form by the Customs from the Post Offices, shall be the date of filing of drawback claim for the purpose of interest payable on delayed payment of drawback, under section 75A of the Customs Act. An intimation of the same shall be given by the Customs to the exporter.

Deficiency Memo. In case the Drawback Claim Form is not complete in all respects, a Deficiency Memo will be issued within 15 days of the receipt from Post Offices. When the exporter complies with the requirements specified in the deficiency memo within 30 days of its return, he shall be issued an acknowledgment by the Customs. The date of such acknowledgment shall be deemed to be the date of filing of claim for the purpose of time permitted for payment of drawback and interest thereon, if any.

If the claim contents including the fulfillment of requirements in the Deficiency Memo issued, if any, are correct as declared, the same will be certified in Form ‘D’. The Customs will also attest the original PP Form and one copy of the invoice. Thereafter, the parcels will be returned to the Foreign Post Office with recommendation for allowing their dispatch out of India. The supdt., FPO will thereafter certify the actual dispatch in Drawback Claim Form, return a copy of the form to the exporter and two copies to the Drawback Section in the Customs and Central Excise Department for necessary action regarding payment of drawback.

The original PP Form duly attested will be forwarded by the Customs directly to the Reserve Bank of India. The invoice (one copy) duly authenticated will be returned by the Customs to the postal department for onward delivery to the concerned exporter.

Payment of Drawback

The export should simultaneously follow the drill explained at stage 2 in Chapter 2 for opening a bank account and drawback ledger account etc so that the cheque for drawback amount could be sent here.

The exporter may also collect the cheque personally.

But contact the concerned Custom House attached to the Foreign Post Offices for further details as the procedure may slightly differ depending upon local conditions.

Drawback against Exports Made before 26.5.95

Please Refer to Chapter 6.