Clarification regarding applicability of All Industry Rates of duty drawback while fixing Brand Rate of duty drawback in post GST era - Customs - PUBLIC NOTICE NO. 21/2019-cus

OFFICE OF THE COMMISSIONER OF CUSTOMS (PREVENTIVE COMMISSIONERATE) 55-17-3, C-14, 2ND FLOOR, ROAD NO.2, INDUSTRIAL ESTATE, AUTONAGAR, VIJAYAWADA - 520 007 C. No. VIII/09/02/2019-Cus.TFC. PF-I Date: 21.08.2019 PUBLIC NOTICE NO. 21/2019-cus Subject:- Clarification regarding applicability of All Industry Rates of duty drawback while fixing Brand Rate of duty drawback in post GST era - reg. Attention of all the Importers, Exporters, Customs Brokers, Steamer Agents, Custodians/ Customs Cargo Service Providers, Trade Associations / Chamber of Commerce, Members of the RAC/ PGC and the Public is invited on the above subject. 2. Attention is also invited to Circular Nos. 83/2003 dated 18.09.2003 and 97/2003 dated 14.11.2003. Representations have been received from trade and field formations seeking clarification on applicability of Circular Nos. 83/2003 dated 18.09.2003 and 97/2003 dated 14.11.2003 to cases of Brand Rate fixation in the post GST era. 3. The matter has been examined. Circular Nos. 83/2003- Customs dated 18.09.2003 and 97/2003-Customs dated 14.11.2003 were issued by the Board allowing the applicability of All Industry Rates (AIRs) of Duty Drawback in respect of certain specific items, namely, finished/lining leather, bicycles and their parts/accessories and bus bodies when used in the export product, while determining Brand Rate of Duty Drawback under Rules 6 and 7 of the then Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 (now Customs and Central Excise Duties Drawback Rules, 2017). These clarifications in the pre-GST era were issued based on the premise that the aforesaid items were exempt from levy of Central Excise duty and the duties on their inputs remained unrelieved. 4. Post GST, since Central Excise duty on inputs and Service Tax on input services used in the manufacture of export goods have been subsumed in GST for which input tax credit/refund is available there under, the basic premise for applicability of AIRS for calculation of Brand Rate of duty drawback no longer exists for exports made in GST regime. Accordingly, it is clarified that contents of para 3(a) and 3(b) of Circular No. 83/2003 dated 18.09.2003 and Circular No. 97/2003 dated 14.11.2003 are not applicable for exports made in post GST era. 5. As regard the duties to be rebated under Duty drawback scheme in post GST era, which are not refunded or neutralized in any other manner, the same can be claimed by the exporter on actual basis in terms of Rules 6 and 7 of aforesaid Rules, 2017. 6. All the members of the Regional Advisory Committee, Trade and Industry Associations are requested to circulate the Public Notice among their constituent members for implementation and guidance. 7. Action to be taken in terms of decisions taken in this Public Notice should be considered as Standing Order for the purpose of officers and staff. 8. Any difficulty, experienced in the implementation, may be brought to the notice of the undersigned. (S.FAHEEM AHMED) PRINCIPAL COMMISSIONER