Streamlining the Procedure of Processing Brand Rate Drawback Claims under Section 75 of the Customs Act, 1962 - Reg. - Customs - PUBLIC NOTICE No. 15/2024

OFFICE OF THE COMMISSIONER OF CUSTOMS BENGALURU CITY CUSTOMS CENTRAL REVENUE BUILDING, No. 1 QUEEN S ROAD, BENGALURU- 560001 E Comp. No. 1391437 File No.: GEN/TECH/PN/31/2024-Tech-O/o-Commr-Cus-City-Bengaluru Phone No. (080) 22867468 Email : [email protected] Date : 12-09-2024 PUBLIC NOTICE No. 15/2024 Subject : Streamlining the Procedure of Processing Brand Rate Drawback Claims under Section 75 of the Customs Act, 1962 - Reg. Attention is invited to all Importers, Exporters, Freight Forwarders, Custodians, Customs Brokers, and other stakeholders working under Bengaluru City Customs regarding the procedure for processing claims for fixation of Brand Rate Drawback under Section 75 of the Customs Act, 1962 read with Rule 6 and Rule 7 of the Customs and Central Excise Duties Drawback Rules, 2017. 1. Filing of Brand Rate Applications : In regards to Brand Rate Applications report received in Drawback Section under Rule 6 ( Cases where amount or rate of drawback has not been determined) and Rule 7 (Cases where amount or rate of drawback determined is low) of the Drawback Rules, all Brand Rate applications must be submitted with the required documents to avoid delays. Incomplete applications will be returned to the exporter along with a Deficiency Memo (DM) as per Rule: a. Rule 12(3) for goods exported by post; and b. Rule 14(3)(a) for goods exported other than by post. Note : According to Rule 7(1), the applicant may, except where a claim for drawback under Rule 3 (All Industry Rate) or Rule 4 (Revised Drawback Rate) has been made, apply for determination of the brand rate under Rule 7. Time Limits and Extension Procedures for Drawback Claims Under Rule 6 and Rule 7 of the Customs and Central Excise Duties Drawback Rules, 2017, exporters must adhere to specific timelines for submitting drawback claims and seeking extensions. Rule 6: Initial Application: Exporters must apply within three months from the relevant date (i.e. first date of LEO) for determining the amount or rate of drawback. (Rule 6(1)(a)). Extensions: The Assistant Commissioner or Deputy Commissioner of Customs can extend this period by three months. The Principal Commissioner or Commissioner of Customs can grant a further extension of six months. Extensions are granted based on an application, which may involve an inquiry, and reasons for refusal must be recorded in writing. Application fees for extensions are 1% of the FOB value or ₹1,000 (whichever is lower) for the Assistant or Deputy Commissioner, and 2% of the FOB value or ₹2,000 (whichever is lower) for the Principal Commissioner or Commissioner. (Rule 6(1)(a)(ii) and (iv)) Bond Requirements: If provisional drawback is requested, exporters must enter into a general bond or a specific bond for the full amount claimed, with conditions to refund any excess or adjust for deficiencies. (Rule 6(2)(b)) Rule 7: Initial Application: Where, in respect of any goods, the exporter finds that the amount or rate of drawback determined under rule 3 or, as the case may be, revised under rule 4, for the class of goods is less than eighty per cent of the duties paid on the materials or components used in the production or manufacture of the said goods. Exporters must apply within three months from the relevant date (i.e. first date of LEO) for the drawback determination, except where a claim under Rule 3 or Rule 4 has already been made. (Rule 7(1)) Extensions: The Assistant Commissioner or Deputy Commissioner of Customs can extend this period by three months. The Principal Commissioner or Commissioner of Customs can further extend it by six months. Extensions require an application, may involve an inquiry, and reasons for refusal must be documented. Application fees for extensions are the same as under Rule 6: 1% of the FOB value or ₹1,000 (whichever is lower) for the Assistant or Deputy Commissioner, and 2% of the FOB value or ₹2,000 (whichever is lower) for the Principal Commissioner or Commissioner. (Rule 7(1)(ii) and (iv)). Bond Requirements: If provisional drawback is requested, the bond required is only for the difference between the amount determined under Rule 3 or Rule 4 and the provisional drawback authorized. (Rule 7(3)) 2. Required Documents and Declarations: The application for fixation of the Brand Rate of Drawback under Rule 6 or Rule 7 shall be accompanied by the following documents : Sl. No. Documents and Declarations Remarks 1 Brand Rate Application (under Rule 6 or Rule 7) 2 Letter seeking condonation of delay beyond Three Months from the first LEO 3 Indemnity Bond (for provisional Brand Rate letter) 4 Declaration regarding availment/non-availment of ITC benefits 5 DBK-I statement (signed by Chartered Engineer) 6 DBK-II statement (signed by Chartered Accountant) 7 DBK-IIA statement (signed by Chartered Accountant) 8 DBK-III statement (signed by Chartered Accountant) 9 DBK-IIIA statement (signed by Chartered Accountant) 10 Brief description of the manufacturing process (Flowchart, Literature, Brochure etc.) 11 Drawback Working Sheet in PDF Excel 12 Export statement (for Rule 7(1) claims) 13 Value addition statement (FOB value CIF) 14 Attested photocopies of shipping bills 15 Declaration for 9807/9801 for claim of Brand Rate (As per Circular No. 29/2015-Cus., dated 16-11-2015) 16 Separate workings for each item in case of multiple items under one shipping bill in PDF Excell 17 Sale price invoices for scrap (if applicable) 18 Soft copy of Bills of Entry (if numerous) 19 Declaration regarding provisional Bills of Entry 20 All attested photocopies of SB and BEs 3. Processing of Brand Rate Applications: 3.1 Initial Scrutiny: Upon receipt of the Brand Rate application, the Examiner/Superintendent/Appraiser of Drawback Section, ICD will scrutinize the application for completeness and availability of all relevant documents. If the application is found incomplete or lacking required documents, it shall be returned to the claimant along with a Deficiency Memo (DM) within: Fifteen days for goods exported by post (as per Rule 12(3)), or Ten days for goods exported other than by post (as per Rule 14(3) (a)). The format of the Deficiency Memo is provided in Annexure A. If deficiencies are not rectified within 30 days, the claim will be deemed not filed as per Rule 12(4) for goods exported by post or Rule 14(3)(b) for goods exported other than by post. 3.2 Completion and Acknowledgement: Once the claim is complete or the exporter rectifies deficiencies within the prescribed time, an acknowledgment, as per Rule 12(4) or Rule 14(3)(b), will be issued to the exporter/Customs House Agent (CHA) as per the format in Annexure B. The claim will be registered and assigned a reference/file number from the concerned Section i.e. Drawback Section, ICD, City Customs, Bengaluru. The claim will be processed for fixation of Brand Rate Drawback under Section 75 of the Customs Act, 1962. 3.3 Failure to Respond to Deficiency Memo: If the exporter fails to reply to the Deficiency Memo (DM) within 30 days (or any other time prescribed in the rules), the following will be applied: (a) For Goods Exported by Post: In accordance with Rule 12(3) of the Customs and Central Excise Duties Drawback Rules, 2017, if the exporter failed to respond to the Deficiency Memo within 30 days period, the claim shall be deemed not to have been received. This applies specifically to goods exported by post. However, if the exporter complies with the deficiency memo requirements within 30 days, an acknowledgment will be issued by the Drawback Section, ICD, City Customs, Bengaluru, and the date of this acknowledgment will be deemed the date of filling the claim for the purpose of Section 75 of the Customs Act, 1962 (b) For Goods Exported other than by Post: In accordance with Rule 14(3)(a) of the Customs and Central Excise Duties Drawback Rules, 2017, if the claim for drawback is incomplete in any material particular of lacks the required documents specified under Rule 14(2), the claim will be returned to the exporter along with a Deficiency Memo. The exporter is required to rectify the deficiencies and resubmit the claim within 30 days. If the exporter failed to do so, the claim shall be deemed not to have been filed. In case where the exporter complies with the requirements specified in the Deficiency Memo and resubmit the claim within the prescribed period, an acknowledgment will be issued by the Drawback Section, ICD, City Customs, Bengaluru, and the date of this acknowledgment will be deemed the date of filling the claim for the purpose of Section 75 of the Customs Act, 1962. 4. Instructions for Exporters: All brand rate applications must include a covering letter listing all enclosures with page numbers, and each enclosure must be flagged appropriately. If any document is not applicable, it should be marked as N.A. 5. Effective Date: This procedure shall be effective immediately and must be strictly adhered to by all officers and staff concerned. 6. Difficulty Resolution: Any difficulty encountered in the implementation of this Public Notice should be reported to the undersigned for resolution. AMITESH BHARAT SINGH COMMISSIONER OF CITY CUSTOMS /BENGALURU Enclosures: Annexures A B ANNEXURE - A Office of the Commissioner of Customs, City Customs Commissionerate C.R. Building, Queen s Road, Bengaluru-560 001 File No Date: DIN No. DEFICIENCY MEMO To M/s.________________ ____________________ _____________________ Subject: Deficiency Memo for Brand Rate Application under Rule [6 or 7] of Drawback Rules, 2017 against Shipping Bill No_____ dated ________Regarding. Dear Sir/Madam, With reference to your Brand Rate application filed under Rule [6/7] of the Customs and Central Excise Duties Drawback Rules, 2017, the application is found deficient or missing the following documents: [List of deficiencies] 2.As per Rule 12(3) (for goods exported by post) or Rule 14(3)(a) (for goods exported other than by post), you are requested to submit the required documents within 30 days. Failure to comply will result in the application being considered not filed under Section 75 of the Customs Act, 1962, read with Rule 6 or 7 of the Drawback Rules. Assistant/Deputy Commissioner of Customs Drawback Section, City Customs Commissionerate, Bengaluru Enclosure: Your drawback claim submitted on__________ ANNEXURE B Office of the Commissioner of Customs, City Customs Commissionerate File No.: ________________________________ E. Comp. No: _____________________________ Date: ___________________________________ ACKNOWLEDGEMENT SLIP This is to acknowledge receipt of the Brand Rate Drawback application under Section 75 of the Customs Act, 1962, filed by: M/s. [Exporter Name] against ______ (number) of Shipping Bills. Claim registered at Sl. No. _______ on [Date]. Please refer to this number in all future correspondence. (Signature) Customs Officer, Bengaluru City Customs