Drawback Recovery where Export Sale - Proceeds not Realiised - Customs - 003/97

Circular No. 3/97-Cus. dated 4/2/97 F.No.602/5/97-DBK Government of India Ministry of Finance Department of Revenue, New Delhi Subject: - Procedure for recovery of Drawback where sale proceeds of the exports have not been realised by exporters Attention is invited to changes made in Customs and Central Excise Duties Drawback Rules, 1995 by Notification No. 72/95-Customs and Central Excise (NT) dated the 6th December, 1995. By the aforesaid notification Rule 16A was introduced prescribing the procedure for recovery of drawback paid where export proceeds were not realised by the exporter. No detailed procedure could be formulated immediately after issue of notification as the matter was under correspondence with Reserve Bank of India for providing XO.S. (Export Outstanding) Statement indicating the Shipping Bill number and Port of export so as to enable Custom Houses to correlate the cases with their records. The matter was also under examination for devising a suitable software for proper implementation of the legal provisions. Whereas development of Software will still take some time, the Reserve Bank of India has now issued A.D. Circular No. 14 dated 9.9.96 amending the proforma of the XO.S. statement. The revised proforma of the statement includes particulars of Shipping Bill Number and Port of Shipment, in addition to details of the exporter, where export proceeds have not been realised. Pending development of software, the Custom House disbursing drawback should collect and co-relate the data based on the XO.S. statement received from the zonal offices of the R.B.I. and take necessary action for recovery of drawback where the export proceeds have not been realised. A consolidated statement in the enclosed proforma should be furnished to the Ministry by 10th day of every month starting from January, 1997. Sd/- (Sunil Kumar) Director (Drawback) Enclosure to letter F.No. 609/5/97-DBK PROFORMA Statement of cases of Recovery of Drawback where Export Proceeds not Realised 1. S.No. 2. Number of cases reported in XOS statement where export proceeds have not been realised in respect of export made from the Port 3. Amount of Drawback involved 4. Amount for which demand notice issued to Rule 16A of Drawback Rules, 1995. 5. Amount of drawback realised under Rule 16A of Duties Drawback Rules, 1995. 6. The total amount for which demand issued upto the end of the month. 7. The total amount realised upto the end of the month. 8. The amount yet to be recovered. 9. The reasons for non-recovery of outstanding amount.