Customs Circular No-43/2007-CUS.
Dated 05.12.2007
Appropriate authority for sanction and disbursement of drawback claims on
supplies made by Domestic Tariff Area (DTA) units to units located in Special
Economic Zone (SEZ) - regarding.
I am directed to invite your attention to the above mentioned subject and to say
that a doubt has been raised as to whether the jurisdictional Commissioners of
Customs or Central Excise can sanction drawback claims against supplies made by
DTA units to units in SEZ.
2. In this regard, it was clarified vide Board’s Circular No.6/2005-Cus, dated
3.2.2005 that with operationalisation of the provisions of Chapter X-A of the
Customs Act, 1962 w.e.f. 11.5.2004, drawback is to be granted for the supplies
made from the DTA to the SEZ. The Dy./Asstt. Commissioner of Customs posted on
deputation at the SEZ being the Dy./Asstt. Commissioner of Customs at the
Customs Station of export shall be the authority for granting these drawback
claims.
3. Chapter X A of the Customs Act, 1962 and the SEZ Rules, 2003 and SEZ
Regulations 2003 issued thereunder have since been made inoperative and replaced
by SEZ Act, 2005 which came into effect on 10.2.2006 and the SEZ Rules, 2006
notified by the Ministry of Commerce and Industry on 10.2.2006. Section 26(d) of
the SEZ Act, 2005 provides that every Developer and entrepreneur shall be
entitled to drawback on goods brought from the DTA into an SEZ. Rule 24 of the
SEZ Rules, 2006 provides that the triplicate copy of the assessed Bill of Export
shall be treated as the drawback claim and processed in the Customs section of
the Special Economic Zone and the Specified Officer shall be the disbursing
authority for the said claims. Further, Rule 30(5) of SEZ Rules, 2006 provides
that in case of procurement of goods from DTA where a Bill of Export has been
filed under a claim of drawback the Unit or Developer shall claim the same from
the Specified Officer and in the case the Unit or Developer does not intend to
claim entitlement of drawback, a disclaimer to this effect shall be given to the
DTA supplier for claiming such benefit. According to Rule 2(zd) of SEZ Rules,
2006, Specified Officer means Joint Commissioner/Deputy Commissioner/Assistant
Commissioner of Customs posted in the SEZ.
4. In view of the above, it is clarified that wherever admissible, drawback
claims in respect of supplies made by DTA units to units or Developers in SEZ
are not to be processed or sanctioned by the Customs and Central Excise
formations. The Specified Officer posted in an SEZ is the appropriate authority
for granting drawback in respect of goods supplied from DTA units to Developers
and units in SEZ except where the unit or Developer issues a disclaimer to the
DTA supplier in which case the Commissionerate of Central Excise /Customs &
Central Excise having jurisdiction over the DTA unit would sanction the
drawback. The jurisdictional Commissioner of Customs in consultation with the
Pay & Accounts Officer shall make arrangements for issue of authorization and
drawback cheque books (wherever EDI facilities are not available for directly
crediting the said amount to the Bank Accounts of the exporters) as clarified by
the Board vide Circular No.6/2005-Cus, dated 3.2.2005.
5. As regards applications for fixation of brand rate of drawback the same may
continue to be filed with the Commissioner of Central Excise or the Commissioner
of Customs and Central Excise having jurisdiction over the manufacturing unit of
the manufacturer or the supporting manufacturer, as the case may be. Copies of
the brand rate fixation letters may be endorsed to the Development Commissioner
and the Specified Officer of the SEZ.
6. Since drawback in respect of goods supplied by DTA units to Developers or
units in SEZ can be claimed by either the SEZ unit or the Developer, as the case
may be, or by the DTA supplier on the basis of the disclaimer issued by the SEZ
unit or the Developer, necessary safeguard may be taken to ensure that drawback
is not availed of twice on the same goods. It may be ensured that the disclaimer
certificate issued by the SEZ unit or the Developer to the DTA supplier is
supported by a certificate from the Specified Officer in the SEZ to the effect
that drawback has not been claimed/availed of on the goods by the SEZ unit or
the Developer, as the case may be.
7. A suitable Public Notice for information of the trade and Standing Order for
guidance of the staff may be issued. Difficulties faced, if any, in
implementation of this Circular may be brought to the notice of the Board.
Receipt of this Circular may kindly be acknowledged.
F.No.602/2/2002-DBK
Yours faithfully,
(P.K. MOHANTY)
JOINT SECRETARY (DRAWBACK)
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