Eximkey - India Export Import Policy 2004 2013 Exim Policy
Customs Duty Drawback Duty Drawback Scheme Brand Rate and Special Brand Rate of Drawback

5. If your application is for specified-shipment have you furnished particulars showing clearly details of shipments and enclosed copies of relevant S/Bills ?

Delay Condonation

6. If your brand rate application has been filed beyond the stipulated period of 30 days for any shipment under the Drawback Rules, but within 60 days of such shipment, have you enclosed a request for condonation of delay and furnished exceptional reasons beyond your control which resulted in delayed filing of applications ?

Supporting Manufacturer

7. If you are a merchant exporter of the goods for which brand rate is being sought have you made sure that the application clearly mentions the details of the supporting manufacturer and data in DBK-I, II & III statements is of the supporting manufacturer and the statements are duly signed by him ?

Working Sheet

8. Have you enclosed the working sheet for the rate of amount claimed by you ?

Market Value

9. Have you given an indication of the present market value of your export product and made sure that the DBK claimed per unit exceed it s present market value ?

II. DBK-I Statement


1. Have you given clear indication of wastages arising during manufacture for each of the inputs in DBK-I and specified the gross quantity used and net quantities contained in the product.

2. Have you made sure that the Drawback relief is claimed only where the materials are of the nature raw materials, components, intermediate or packaging material and not for consumables ?

3. In case you are claiming Drawback even for some wastage and not on the net quantity contained in product, have you given clear indication of the nature of wastage and where it is recoverable current sale price if it is sold and enclose a copy of latest sale invoice.

(a) In case recoverable wastage is not sold, but used within the factory or recycled, have you given clear indication of the same and mentioned the goods manufactured/recoveries effected therefrom ?

(b) In case you are claiming high wastage for any input, have you furnished detailed reasons for high consumption of raw materials in your export product, and approx. percentage of wastage arising at different stages by a separate write-up ?


4. If there are any co-product/by-product arising during the course of manufacture of the export product, have you mentioned them and given their details in the proforma/DBK-I, including their quantum and sale price per unit ?

III. DBK-II Statement

Stock Position

1. Have you given the stock position as on 31st May, in cases where an application is filed at the beginning of the Drawback year (June-May) of different inputs and furnish details of duty payment for this stock (bill of entry number and date, quantity imported, assessable value, duty etc.)? Where an application is filed before 31st May, furnish stock position to verifying officer of Customs/Central Excise.

2. Have you furnished details of procurement of imported inputs in the DBK-III proforma for a period of three months prior to the date of export/first export ?

3. If any inputs have been imported by a third party, but purchased by you on high seas, have you furnished relevant authorization for transfer of bill of entry with endorsement of transfer etc., to support your claim of having paid the duties yourself ?

4. If in DBK-II/IIA statement relating to three months procurements/stock of imported inputs you have also included some provisionally assessed bills of entry, have you given us option for fixing the brand rate excluding the provisionally assessed items ?

Transaction Prices

5. In case an assessment is done provisionally pending examination of books of account etc., determining the loading factor (on the consideration of certain relationship between you and your suppliers) have you claimed relief on transaction prices without loading and given an undertaking that no supplementary relief will be claimed as and when the loading factor is finally decided by the Customs House ? If so have you also attached copies of relevant invoices and B/Es to find-out the basis of provisional assessment.

6. If the same bill of entry is shown in your DBK-II statements in more than one application have you furnished reasons and given details of consumption of material from the B/Entry allocated to each of the Brand rate application filed by you ?

IV. DBK-III Statement

1. Have you furnished the particulars of relevant gate passes/Supplementary gate passes or gate passes which have been endorsed in your favour, for procurements mentioned in DBK-III, where duty relief for indigenous inputs is claimed ?

2. Have you furnished details regarding procurements of indigenous inputs that are identical to imported inputs and the ratio of their utilization in the export product, if such indigenous goods are being used in the manufacture of the export item ?

For Simplified Scheme

Duty Paying Documents

1. Have you enclosed copies of all duty paying documents are related invoices (Bill of Entries for home consumption, ex-bond Bill of Entries, Gate Passes/Supplementary Gate Passes etc. referred to in DBK-IIA & IIB/IIIA/IIIB.

Indemnity Bond

2. Have you furnished indemnity bond in the prescribed proforma ?

Electronic Items

3. In the case of electronic items have your furnished consumption pattern and duty payment particulars in DBK-II and III statements, according to part No. wise i.e. individual I.C. wise.

Notes: 1. Copies of application form etc. may be obtained from the nearest Customs House/Central Excise Commissionerate.

2. For any further assistance please contact the Public Relations Officer of any Customs House/Office of the Commissioner of Central Excise or the Director (Drawback), Ministry of Finance (Department of Revenue), Jeeven Deep Building, Parliament Street, New Delhi -110 001.

Dos and Doníts for exporters applying for brand rates fixation

(1) Ensure that the Covering Application form and the DBK-I/II/III are filed in the prescribed formats only, unless a specific exemption has been obtained from the Drawback Directorate.

(2) Ensure that all the columns in the covering "Application Form" are properly and correctly filled in. Do not leave any column blank, if any column is not applicable to you, briefly indicate the reason.

(3) Ensure that the description of the export product corresponds with the export contract/export documents like Shipping Bill and other papers that have been filed/are to be filed in the Customs House at the time of export.


(4) If the same product is described in different names or brands having the same material content, clearly give all the brand names in the application form as well as in DBK-I.

(5) In case any duty-payment is under dispute on account of assessable value or for any other reason or any refund of duties has been applied for, the nature of dispute/refund applied should be indicated clearly. The details of such disputes/refunds should be furnished separately in respect of impor1ed procurement/indigenous procurements.

(6) If any indigenous or imported material is obtained duty free or any rebate is obtained for inputs (e.g., duty exemptionSchemeproforma credit, in-bond manufacture etc.), indicate the same clearly against each such "Inputs".

(7) Statement DBK-I is a statement of bill of materials for the expor1 product. Ensure that the unit quantity for which you are preparing the bill of material is clearly indicated in numbers/weight or volume against the relevant column of DBK-I.

(8) ensure that this unit quantity corresponds with your export contract or your invoicing system for exports and also with the units expressed in export documents especially Shipping Bill.

(9) Indicate against each input the quality and technical characteristic clearly; also indicate imported/indigenous nature of the inputs,

(10) The columns relating to gross quantity, recoverable and irrecoverable wastages and net weight of the materials in the final product should be clearly and correctly filled in.

(11) Where "recoverable" wastages are shown, the sale value of the same or its utilisation in future/further production should be clearly indicated to the satisfaction of the Verifying Officer. If the wastages are not satisfactorily accounted for, please note that your drawback will be based on the net weight of the raw material consumed in the export product.

(12) In case you are confining your claim for drawback for the Customs Duty/Excise Duty incidence only on a few major inputs and not on many minor inputs, please indicate the details of the major inputs only clearly and a mere statement/declaration that you are not claiming any duty incidence on other minor inputs, would suffice. This would eliminate delays in scrutiny, verification and fixation of rates.


(13) Statement DBK-II deals with the imported materials procured by you for the manufacture of export product. Ensure that for each input you give the opening balance of stock of such input as on three months before the date of first export or the date from which you require the drawback rate, Also indicate the duties suffered by the said opening stock with evidence thereof.

(14) Furnish the date of opening stock and further procurements inputwise in a chronological order. Produce all the original documents to the concerned officer at the time of his visit. The factories having their Registered/Head Offices outside should ensure that the documents in original are produced in the factory at the time of verification.

(15) In case there has been procurement, after you had submitted your data, you may file a supplementary DBK-II statement indicating further procurement till the date of visit/verification by the Verifying Officer. This would ensure that the rates are fixed for you for a longer period based on the sufficiency of the imported inputs.

(16) In case imported materials are procured from the canalising agency, please furnish a certificate of duty paid by the canalised agency in respect of the sales made to you. The certificate should furnish the duty incidence suffered with bill of entry number etc., either for the whole quantity or for the unit quantity imported. If no correlation is possible, the Canalising Agencies can furnish a certificate of total value 01 imports, duty paid Bill of Entry-wise, for three months prior to the date of supply.

(17) In case "Imported Inputs" are procured from other indigenous sources (Agents/Export Houses/Dealers etc.), the particulars of bill of entry should be furnished along with a Photostat copy and a certificate from the importer. The particulars may be counter-checked/verified with original importers, if need be, for giving the benefit of incidence.


(18) Statement DBK-III is a statement of purchases of components/raw materials of in- digenous nature procured locally. As in the case of DBK-II, the opening balance for each input should be given as on three months prior to the date of first export or the date from which the drawback rate is desired.

(19) Furnish the data of opening balance and procurements input-wise. All local procurements shall be indicated in a chronological order. The Gate Passes/invoice-cum-Gate Passes evidencing payment of duty on the excisable materials procured shall be produced before the Verifying Officer. If such originals cannot be produced, exporters shall obtain from the supplying company, a certificate regarding duty incidence suffered by the manufacturer giving the relevant Gale Pass No. and date covering the relevant supplies.

(20) Any claim of duty incidence for brand rates should be supported by original documents by the exporter himself failing which the incidence as per "All Industry Rates", wherever available, will be allowed.

(21) Ensure that all the statements and the application proformae are signed by an authorised person for the exporter, namely, the Power of Attorney holder or the person authorised by the company to sign all the documents.


(22) Ensure that when the authorised officer visits your factory for verification, you produce all the original documents evidencing:

(a) payment of duty;

(b) issuance/issues from store for manufacture;

(b) details of actual manufacture;

(d) stock of finished product;

(e) proof of export of the finished product; and

(f) any other relevant document,

with a view to satisfy the said officer regarding procurement and consumption of materials and their duty paid nature and also to facilitate their correlation with the finished product and final export thereof.

Scheme Effective 1.4.95

The EXIM Policy, 1992-97 as amended on 31 3.95 and effective from 1.4.95, provides for levy of countervailing or additional duty of Customs both on all inputs imported under the value-based advance licensing (VABAL) scheme as well as quantity-based advance licensing (CABAL) scheme. The duty so paid can be drawn back either under the Modvat Scheme or Drawback Scheme.

Modvat Credit. The countervailing or additional duty of customs paid on imported inputs can be claimed as Modvat Credit, wherever permissible under Rule 57 A of Central Excise Rules, or benefits of Rule 12(1 )(b) or 13(1 )(b) of same Rules can be availed of Rule 13(1)(b) provides for removal of specified materials without payment of duty from the place of manufacture or storage for use in the manufacture in bond of export goods. Rule 12(1 )(b) permits grant of rebate of duty paid on materials used in the manufacture of goods. if such goods are exported outside India, etc. Moreover, declaration in this regard in the Shipping Bill will not be necessary in such cases.

Drawback. Under both the Schemes i.e. V ABAL and QABAL. Drawback of duties (both excise and customs) shall also be admissible except for drawback of basic customs duty on inputs permitted to be imported duty free under the Advance Licence.

However, drawback of customs duties shall be restricted to the imported inputs (other than for which exemption is claimed under Advance licence shown in list (b) under Part C of the DEEC -Duty Exemption Entitlement Certificate). Accordingly, claims of drawback on exports made under Duty Exemption Scheme for which licences are to be issued on or after 1.4.95 will be entertained.

Procedure for Verification

Fixation of Brand Rate of Drawback-New Guideline effective January 1, 1995 - Applications to be fied with Asstt. Commissioner of Central Excise both by Manufacturer and Merchants

The following Guidelines are issued for strict compliance Commissioners should issue suitable PN/TN/SO/DO for guidelines of the Trade as well as of Department Officers: -

(a) It has been decided with effect from 1.1.1995 that exports of goods which are excisable whether exempted or not - i.e. whether cleared under AR 4 or not. and where such
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