form within the stipulated time prescribed under Rule 6 & 7, as the case may be, for his subsequent exports.

Extension of Rate Letter. For seeking an extension of a rate letter, a separate application would be necessary within the prescribed time which could be reckoned from the date of shipping bill of export. It will be simple request for extension with documents wherever necessary.

Subsequent Shipments. Where original brand rate application is filed for a specific shipment(s) and the exporter wants the same to be extended to other subsequent shipments the request for such extension will be considered if filed within 60 days from the date to last shipment mentioned in the original application, mentioned in the original application in the following situations.

(a) Where rate letter has already been issued and the stock shown in the earlier DBK-I, II, and III statements are sufficient to cover the subsequent shipment(s) for which extension is sought: or

(b) Where verification has already been completed and stock is sufficient to cover the subsequent shipment(s) but the brand rate letters are yet to be issued: or

(c) Where the verification has already been completed but the opening stock plus the input acquired thereafter is not sufficient to cover the quantity manufactured for the subsequent shipment(s) for which extension is sought, then such request should be supported by necessary original duty paying documents which will be subject to post-focto verification thereof by the Jurisdictional Commissioner within 3 months, or where verification has not been completed the exporters shall get the additional duty paying documents of the additional stock also verified by the Jurisdictional Commissioner for the subsequent shipment.

Note: Where such request is for inclusion of other intervening shipments then the same should be filed within 30 days of date of export.

(d) To obviate the above difficulties, it is suggested that exporter may make application(s) for a specific period of the time subject to the quantity of raw material available/procured by the Unit so that they do not have to make fresh application(s) during the same year in respect of the quantity already lying in stock prior to the date of first shipment. However such applications will be valid only for shipments to be effected upto 31st May. For Shipments effected after 1st June of any year, fresh Brand Rate application must be filed.

Extension of Time/Quantity Enhancement

Applications for such extension where the brand rate letter has been issued for a specified period of time and/or with quantity restrictions will also be considered in the following situations:

(a) Where the request is only in respect of increase in the quantity, such request should be made within 30 days extendable by another 30 days, from the expiry of the terminal date mentioned in the rate letter, and –

(i) if the verification has already been completed and stock is sufficient to cover such quantity enhancement as asked for; or

(ii) verification has already been completed but the stock is not sufficient to cover the subsequent quantity for which extension is sought; then, such request should be supported by necessary original duty paying documents which will be subject to post- facto verification thereof by the Jurisdictional Collector within 3 months; OR if verification has not been completed, the exporters shall get the additional duty paying documents of the additional stock verified by the jurisdiction Commissioner for the additional quantity also.

(b) Where the request is extension of period of time mentioned in the original brand rate letter, such request should be filed within 30 (thirty) days from the terminal date mentioned in the rate letter. However, such extension of time would not be granted if the original rate letter is for period ending 31st May (i.e. end of Drawback Year).

In all the above situations extension in brand rate letters would be allowed only once, and-

(i) exporter should note that as already advised earlier, - the extension if eligible, will be granted only upto 31st May of year. For further extension after 31st may, the exporter should file fresh application along with DBK-I, II and III statement,

(ii) however, in respect of brand rate letter issued against Advance Licence, DEECs, extension of the time of brand rate letters would be entertained for periods beyond 31st May, if such request is made on account of extension of the validity period of export obligation under the DEEC Scheme.

Where applications suffer from some basic defects, keep the following aspects in mind:

(i) In a large no. of cases it has been seen that the exporters do not furnish the stock position and the duty suffered thereon, three months prior to the date of export in DBK-IIA, or IIIA Statements as required, without the above statements, it becomes difficult to arrive at the correct rates. Furnish these statements whenever they apply for any brand rate.

(ii) Where the exporters claim reimbursement of the Central Excise duties/CV duties (which are otherwise covered under the MODVAT Scheme) while applying for brand rates, a specific certificate from the jurisdictional excise authorities certifying non-availment of MODVAT OF EXCISE DUTIES/CV duty (including thereon the Gate Pass/Bill of Entry no.) is required. This certificate is not furnished by many exporters while applying for brand rates

(iii) In many cases the DBK-II/III Statements show procurements of different lots of inputs suffering different rates of Customs/Excise duties as the case may be. In such situations the exporters can manufacture the export goods out of one lot only or different clearly the exact lot from which the export goods have been manufactured, the Drawback rates are sometimes arrived at by following the principle of averaging. The brand rates in such cases will be worked out in all cases will be worked out in all cases by taking the average of duties suffered on different lots of inputs procured over a period of time.

(iv) At the time of verifying the data, the verifying authorities check the origional duty-paying documents. For this purpose the origional Bill of Entry or Gate Passes as the case may be should be procured before the verifying officer who will suitably deface them at the time of verification and also make necessary entries in the prescribed records and give a certificate to this effect in the verification report.

(v) Where exporters claim drawback of certain inputs while availing the facility of Quantity Based Advance Licence, it is often noticed that copies of the Advance Licence and both Import/Export Parts of the DEEC Book are not being submitted.

Manufacturers v. Merchant-Exporters

In case the manufacturer-applicant plans to export through merchant exporters, he may mention this fact in the application for fixation of brand rate i.e. stating clearly that he will export the goods through “self and merchant exporters”. In such cases, the benefit of drawback will be allowed to manufacturer even if export is made through merchant-exporter after obtaining a disclaimer certificate from the merchant-exporter and ensuring that no double payment is made against the same export.

Data Verification and Relaxation thereof

Where an applicant seeks an extension of the rate of drawback of a standard product which is subject to repeat export shipments, the manufacturing formula for which has not altered and the quantum and the ratio of the inputs of a unit product has remained unchanged, the exporter can seek extension of the rates of fixation of rates without causing verification by the Customs/Central Excise Officers, if they satisfy the following criteria: -

(a) that the quantum and the ration of the inputs to the unit quantity of a finished product has not changed and there is no change in the manufacturing formula i.e., the content of drawbackable inputs has remained unaltered for the current period and it is the same as submitted for the previous period;

(b) (i) that the export product has been produced out of indigenous materials for which evidence of payment of duty by way of Gate Pass / Gate Pass –cum-Invoice could be produced directly to the Drawback Directorate;

(ii) that under no circumstances the duties of central excise paid on the inputs, have been paid under protest; that the assessment is not provisional; that no refund claims have been preferred or would be preferred on any ground to the excise authorities; and that there has been no dispute on the assessment on the inputs;

(iii) that the indigenous inputs for which duty incidence has been claimed/allowed earlier on the basis of evidence of verification/duty paying documents have been continued to be procured on payment of duty and have not been exempted from payment of duties under any of the provisions of the Central Excise Act/Rules;

(c) that in respect of inputs the manufacturer is claiming application of current All Industry rates as per the material content provided the quantum continues to be same as in the previous period of validity of the brand rate letter;

(d) (i) that the manufacturer/exporter depends upon one or two imported materials only and there has been no change in the quantum or ration of the utilisation of the imported materials either by themselves or in admixture with indigenous materials in the manufacture or a finished product i.e. the ratio and quantum of materials of imported nature as well as indigenous nature had not altered, modified or changed during the current year;

(ii) that the manufacturer/exporter can produce evidence of payment of import duty directly to the Drawback Directorate.

Where an applicant satisfies the above conditions, he can ask extension/fixation of the rate for a period of one year (corresponding to the period of validity of the All-Industry rates under Drawback Schedule) for his export product waiving routine verification. He should, however normally indicate in his application covering application/letter that he seeks extension of the rates without verification of the data by the Customs/Central Excise formations. The applications for extension will also be accompanied by the photostat copies of duty paying documents as may be shown in DBK-II and III statements. The original documents if required will be called for later. The concession of waiver of verification would not be available to an exporter for an export product exported for the first time. To facilitate all the exporters to adopt a uniform form of declaration, the additional declarations required to be furnished on the various forms, are indicated below.

Also see ‘Subsequent Shipments’ above.

Additional Declarations on Drawback Statements

Annexure to Letter F. No. 603/39/80-DBK dated 6/1/83

At the end of DBK-I Statement, an additional declaration may be furnished as under:

“Certified that the quantum and the ratio of use of input of imported materials has remain unchanged and that there is no change in the manufacturing formulae”

2. At the end of DBK-II Statement, the following additional declarations may be furnished

(a) that the quantum and ratio of use of input of imported material has remained unchanged and is the same as in the earlier statement DBK-II dated…………. furnished by us and that there is no change in the utilisation of the imported materials by themselves or vis-à-vis indigenous materials;

(b) in respect of imported materials, the imported goods have not been obtained or procured without payment of any duty under any of the provisions;

(c) that the duties of Customs have been paid without any protest; that the assessment is not provisional and that no refund claim has been preferred in respect of the raw materials for which duties of Customs have been claimed in DBK-II Statement.

3. At the end of DBK-III Statement, the following additional declarations may be furnished:

(a) that the quantum and ratio of input in indigenous materials has remained unchanged as declared in our earlier Statement DBK-III dt……….and that there is no change in the utilisation of the indigenous materials by themselves or vis-a-vis imported material,

(b) that in respect of indigenous materials, the indigenous goods have not been obtained or procured without payment of any central excise duty under any of the provisions;

(c) that the duties of central excise have been paid without any protest, that the assessment is not provisional and that no refund claim has been preferred or would be preferred in respect of raw materials for which duties of Central Excise have been claimed in DBK III Statement.

Further Statements

DBK-I-Further Statements

It is certified—

(a) that the materials shown in the DBK-I statement have actually been used in the manufacture of the export product.

(b) that there is no co-product or by-product

(c) that the imported materials shown in the DBK-I statement have actually been used in the manufacture of the export product and were not substituted by indigenous materials

(d) that the stock of input together with duly incidence on the date of commencement of the manufacture was available as per the stock and subsequent procurements shown are adequate to meet the requirement of the input of the export product

(e) that the wastages have been taken from the accounts maintained

Note: This certificate should be signed by the Production/Chief Engineer of the Company.

It is required in case verified data in respect of standard product/repeat shipment are available in the Drawback Directorate. In such cases, the said company will furnish a declaration at the footnote of DBK-I to the effect that “there has been no change in the manufacturing formula and the quantum and ratio of inputs of indigenous/imported materials to the export product remains unchanged” duly signed by the Production/Engineer (Chief).

DBK-II & III-Further Statements

It is certified –

(a) that the duties shown in DBK-II statement have been actually paid and have been verified from the relevant bill of entry,

(b) that there is no provisional assessment in respect of the duty on input and that no claim for refund of duty in respect of the input shown therein has been preferred,

(c) that the duties of central excise on the input shown in DBK-II statement have been paid without protest/are not paid/paid provisionally and no refund claim has been preferred in respect of the said duties and that the duties of central excise shown therein have been verified from the relevant Gate Passes.

(d) That the selling price of the scrap/rejections is fair. This certificate should be signed by the Accounts/Finance Chief.

Note: The above certificate in form DBK-II & III be further supported by a certificate of Chartered Accountant confirming the correctness of the data furnished

Documents

In addition to the Statements DBK-I, II & III and other supporting documents, the application form should be sent with a Drawback Calculation Sheet of the excepted amount of drawback based on the input consumption indicated in DBK-I and supported by the duty payment indicated in DBK II & III. This ‘Sheet’ should also be certified by a Chartered Accountant.