GOVERNMENT ANNOUNCES PROCEDURAL
MODIFICATIONS IN DUTY DRAWBACK TO FACILITATE EXPORTS
The Ministry
of Finance and Company Affairs has made procedural modifications
in the area of duty drawback. These modifications are based on
the recommendations made by the Kelkar’s Task Force for procedural
and structural reforms of the indirect tax administration. The
modifications are as follows:
- Merchant
exporters who get their export goods manufactured from a supporting
manufacturer who is not registered with Central Excise can get
duty drawback merely on filing a declaration that Cenvat facility
has not been availed by the supporting manufacturer.
- Exporters
of composite articles shall be allowed duty drawback on the
strength of a declaration as to composition of various constituent
materials.
- Exporters,
who apply for fixation of Brand Rate of drawback owing to inadequate
compensation through the All Industry Rates, shall be allowed
the All Industry Rates immediately. They shall get the different
drawback after fixation of the brand rate.
- Another
major step of export facilitation through decentralization has
been to provide the mechanism of fixation of Brand Rate of Drawback
at the doorsteps of the exporters. From 1st April,
2003, the brand rates of drawback shall be fixed by jurisdictional
Commissioners of Central Excise in whose jurisdiction the factory
of the manufacturer or the supporting manufacturer is located.
This shall obviate the delays involved in the correspondence
and postal transit.
Duty
Drawback is a rebate of input stage duties of customs & central
excise which renders the goods competitive in the international
market. Hence duty drawback is an important export promotion measure
contributing to the export led growth of the economy and accretion
of precious foreign exchange.
