Rule 16A - Recovery of amount of Drawback where export proceeds not realised - Customs, Central Excise Duties and Service Tax Drawback Rules, 1995

RULE 16A. Recovery of amount of Drawback where export proceeds not realised. - (1) Where an amount of drawback has been paid to an exporter or a person authorised by him (hereinafter referred to as the claimant) but the sale proceeds in respect of such export goods have not been realised by or on behalf of the exporter in India within the period allowed under the Foreign Exchange Management Act, 1999 (42 of 1999), including any extension of such period, such drawback shall 4 [ except under circumstances or conditions specified in sub-rule (5) ] be recovered in the manner specified below : Provided that the time-limit referred to in this sub-rule shall not be applicable to the goods exported from the Domestic Tariff Area to a special economic zone. (2) If the exporter fails to produce evidence in respect of realisation of export proceeds within the period allowed under the Foreign Exchange Management Act, 1999, or any extension of the said period by the Reserve Bank of India, the Assistant Commissioner of Customs or the Deputy Commissioner of Customs, as the case may be shall cause notice to be issued to the exporter for production of evidence of realisation of export proceeds within a period of thirty days from the date of receipt of such notice and where the exporter does not produce such evidence within the said period of thirty days, the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be shall pass an order to recover the amount of drawback paid to the claimant and the exporter shall repay the amount so demanded within thirty days of the receipt of the said order : Provided that where a part of the sale proceeds has been realised, the amount of drawback to be recovered shall be the amount equal to that portion of the amount of drawback paid which bears the same proportion as the portion of the sale proceeds not realised bears to the total amount of sale proceeds : (3) Where the exporter fails to repay the amount under sub-rule (2) within said period of thirty days referred to in sub-rule (2), it shall be recovered in the manner laid down in rule 16. (4) Where the sale proceeds are realised by the exporter after the amount of drawback has been recovered from him under sub-rule (2) or sub-rule (3) and the exporter produces evidence about such realisation 1 [within a period of three months from the date of realisation of sale proceeds], the amount of drawback so recovered shall be repaid by the Assistant Commissioner of Customs or Deputy Commissioner of Customs to the claimant 2 [provided the sale proceeds have been realised within the period permitted by the Reserve Bank of India] 3 [Provided that- (i) the 7 [Principal Commissioner of Customs or Commissioner of Customs, as the case may be] 8 [***], may extend the aforesaid period of three months by a period of nine months provided the sale proceeds have been realised within the period permitted by the Reserve Bank of India; (ii) an application fee equivalent to 1% of the FOB value of exports or ₹ 1000/- whichever is less, shall be payable for applying for grant of extension by the 7 [Principal Commissioner of Customs or Commissioner of Customs, as the case may be] 9 [***].] 5 [ (5) Where sale proceeds are not realised by an exporter within the period allowed under the Foreign Exchange Management Act, 1999 (42 of 1999), but such non- realisation of sale proceeds is compensated by the Export Credit Guarantee Corporation of India Ltd. under an insurance cover and the Reserve Bank of India writes off the requirement of realisation of sale proceeds on merits and the exporter produces a certificate from the concerned Foreign Mission of India about the fact of non-recovery of sale proceeds from the buyer, the amount of drawback paid to the exporter or the claimant shall not be recovered. ] *********************** Notes: - 1. Substituted vide notification no. 49/2010 Cus(NT) dated 17/6/2010 , before it was read as, within one year from the date of such recovery of the amount of drawback 2. Inserted vide notification no. 49/2010 Cus(NT) dated 17/6/2010 3. Inserted vide notification no. 49/2010 Cus(NT) dated 17/6/2010 4.Inserted vide Notification No. 30/2011 - Customs (N.T.) dated 11/04/2011 , in sub- rule(1). 5.Inserted vide Notification No. 30/2011 - Customs (N.T.) dated 11/04/2011 , after sub-rule (4). 6. Substituted vide Not. 23/2014 - Dated 6-8-2014. 7. Substituted vide Not. 56/2014 - Dated 6-8-2014 8. Omitted vide Not. 58/2017 - Dated 29-6-2017 w,e.f. 1st day of July, 2017 before it was read as, or 6 [Principal Commissioner or Commissioner] of Customs and Central Excise, as the case may be 9. Omitted vide Not. 58/2017 - Dated 29-6-2017 w,e.f. 1st day of July, 2017 before it was read as, or 6 [Principal Commissioner or Commissioner] of Customs and Central Excise, as the case may be