Circular
No. 24/2001 dated the 20th April, 2001
Duty
Drawback – Declaration under Rule 12(1)(a)(ii) of Drawback Rules
Sir,
Sub:
Declaration under Rule 12(1)(a)(ii) of Drawback Rule for availing AIR of
Drawback
Export
Promotion Councils have brought to the notice of the Board that certain Customs
Houses are relying on the first proviso to Rule 3 of Customs & Central
Excise Rules, 1995 & Declaration filed by exporters under Rule 12(1)(a)(ii)
of the said Rules to seek evidence of payment of duties and evidence of import
of inputs against individual consignments exported by individual exporters under
claim for Drawback at All Industry Rate and this is creating undue delay in
disbursement of drawback and harassment to genuine exporters.
2.
The
issue has been examined in the Board. All Industry Rate is based on the concept
of averages, wherein the drawback rate itself as well as its customs and excise
portions are based on weighted averages of consumption of imported/indigenous
inputs of a representative cross section of exporters and the average incidence
for duties suffered on such inputs. These rates have no relation to the actual
input consumption pattern and actual incidence suffered on inputs of a
particular exporter or individual consignments exported by any particular
exporter under AIR/DBK Claim.
3.
Therefore, it is clarified that, as a matter of rule, no evidence of
actual duties suffered on imported or indigenous nature of inputs used, even if
the All Industry Rate has customs portion, should be insisted upon by the field
formations alongwith declaration filed by exporters under Rule 12(1)(a)(ii) of
the Customs & Central Excise Duties Drawback Rules, 1995.
4.
It is also pertinent to mention that the intention of the first proviso
to Rule 3 is essentially to provide a guideline to the Directorate of Drawback
as to how All Industry Rates of drawback will be determined in certain
situations. It is not intended for the field formations to use this rule for
arbitrarily altering the All Industry Rates of Drawback in the case of
individual exporters for individual consignments.
5.
Brief details of cases where proof of import of duty payment has been
insisted upon for claims under All Industry Rates by the Customs Houses may be
brought to the notice of the Board.
6.
However, if the Department has any documentary evidence of fraud, the
Customs Houses may initiate proper investigation with the prior written approval
of the Commissioner.
7.
This is in supersession of Board's Circular No. 23/2001-Cus. issued on
18.4.2001 on the above subject.
Sd/-
(R.K. Talajia)
S.T.O. (DBK)