Customs and Central Excise Duties Drawback Rules, 1995 - 37/1995 - Customs - Non Tariff

Customs and Central Excise Duties Drawback Rules, 1995 [Notification No. 37/95-Cus. (N.T.), dated 26-5-1995 ] G.S.R. 441(E).- In exercise of the powers conferred by section 75 of the Customs Act, 1962 (52 of 1962) and section 37 of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government hereby makes the following rules, namely:- 1. Short title, extent and commencement. - (1) These rules may be called the Customs and Central Excise Duties Drawback Rules, 1995. (2) They extend to the whole of India. (3) They shall come into force on the 26th day of May, 1995. 2. Definitions. - In these rules, unless the context otherwise requires,- (a) "drawback", in relation to any goods manufactured in India, and exported, means the rebate of duty chargeable on any imported materials or excisable materials used in the manufacture of such goods; (b) "excisable material" means any material produced or manufactured in India subject to a duty of excise under the Central Excises and Salt Act, 1944 (1 of 1944); (c) "export", with its grammatical variations and cognate expressions, means taking out of India to a place outside India and includes loading of provisions or store or equipment for use on board a vessel or aircraft proceeding to a foreign port; (d) "imported material" means any material imported into India and on which duty is chargeable under the Customs Act, 1962 (52 of 1962); (e) "manufacture" includes processing of or any other operation carried out on goods, and the term manufacturer shall be construed accordingly. 3. Drawback. - (1) Subject to the provisions of - (a) the Customs Act, 1962 (52 of 1962) and the rules made thereunder, (b) the Central Excises and Salt Act, 1944 (1of 1944) and the rules made thereunder, and (c) these rules, a drawback may be allowed on the export of goods at such amount, or at such rates, as may be determined by the Central Government : Provided that where any goods are produced or manufactured from imported materials or excisable materials on some of which only, duty chargeable thereon has been paid and not on the rest, or only a part of the duty chargeable has been paid; or the duty paid has been rebated or refunded in whole or in part or given as credit, under any of the provisions of the Customs Act, 1962 (52 of 1962), and the rules made thereunder, or of the Central Excises and Salt Act, 1944 (1 of 1944) and the rules made thereunder, the drawback admissible on the said goods shall be reduced taking into account the lesser duty paid or the rebate, refund or credit obtained : Provided further that no drawback shall be allowed - (i) if the said goods, except tea chests used as packing material for export of blended tea, have been taken into use after manufacture; (ii) if the said goods are produced or manufactured, using imported materials or excisable materials in respect of which duties have not been paid; or (iii) on jute batching oil used in the manufacture of export goods, namely, jute (including Bimlipat jute or mesta fibre), yarn, twist, twine, thread, cords and ropes; (iv) if the said goods, being packing materials have been used in or in relation to the export of - (1) jute yarn (including Bimlipatam jute or mesta fibre), twist, twine, thread and ropes in which jute yarn predominates in weight; (2) jute fabrics (including Bimlipatam jute or mesta fibre), in which jute predominates in weight; (3) jute manufactures not elsewhere specified (including Bimlipatam jute or mesta fibre) in which jute predominates in weight. (2) In determining the amount or rate of drawback under this rule, the Central Government shall have regard to, - (a) the average quantity or value of each class or description of the materials from which a particular class of goods is ordinarily produced or manufactured in India; (b) the average quantity or value of the imported materials or excisable materials used for production or manufacture in India of a particular class of goods; (c) the average amount of duties paid on imported materials or excisable materials used in the manufacture of semis, components and intermediate products which are used in the manufacture of goods; (d) the average amount of duties paid on materials wasted in the process of manufacture and catalytic agents : Provided that if any such waste or catalytic agent is re-used in any process of manufacture or is sold, the average amount of duties on the waste or catalytic agent re-used or sold shall also be deducted; (e) the average amount of duties paid on imported materials or excisable materials used for containing or, packing the export goods; (f) any other information which the Central Government may consider relevant or useful for the purpose. 4. Revision of rates. - The Central Government may revise amount or rates determined under rule 3. 5. Determination of date from which the amount or rate of drawback is to come into force and the effective date for application of amount or rate of drawback. - (1) The Central Government may specify the period upto which any amount or rate of drawback determined under rule 3 or revised under rule 4, as the case may be, shall be in force. (2) Where the amount or rate of drawback is allowed with retrospective effect, such amount or rate shall be allowed from such date as may be specified by the Central Government by notification in the Official Gazette which shall not be earlier than the date of changes in the rates of duty on inputs used in the export goods. (3) The provisions of section 16, or sub-section (2) of section 83, of the Customs Act, 1962 (52 of 1962) shall determine the amount or rate of drawback applicable to any goods exported under these rules. 6. Cases where amount or rate of drawback has not been determined. - (1)(a) Where no amount or rate of drawback has been determined in respect of any goods, any manufacturer or exporter of such goods may, within 60 days from the date relevant for applicability of the amount or rate of drawback in terms of sub-rule (3) of rule 5, apply in writing to the Central Government for the determination of the amount or rate of drawback therefore stating all relevant facts including the proportion which the materials or components are used in the production or manufacture of goods and the duties paid on such materials or components : Provided that the Central Government may, if it is satisfied that the manufacturer or exporter was prevented by sufficient cause from filing the application within the aforesaid time allow such manufacturer or exporter to file such application within a further period of thirty days. (b) On receipt of an application under clause (a) the Central Government shall, after making or causing to be made such inquiry as it deems fit, determine the amount or rate of drawback in respect of such goods. (2)(a) Where an exporter desires that he may be granted drawback provisionally, he may, while making an application under clause (a) of sub-rule (1) apply in writing to the Central Government that a provisional amount be granted to him towards drawback on the export of such goods pending determination of the amount or rate of drawback under clause (b) of that sub-rule. (b) The Central Government may after considering the application authorise the Collector of Customs at the port where the goods are exported to pay provisionally an amount not exceeding the amount claimed by the exporter in respect of such export : Provided that the Collector of Customs may, for the purpose of allowing provisional payment of drawback in respect of such export, require the exporter to enter into a general bond for such amount, and subject to such conditions, as the Collector of Customs may direct; or to enter into a bond for an amount not exceeding the full amount claimed by such exporter as drawback in respect of a particular consignment and binding himself,- (i) to refund the amount so allowed provisionally, if for any reason, the Central Government decided not to allow drawback; or (ii) to refund the excess, if any, paid to him provisionally if the Central Government decided to allow a drawback : Provided further that when the amount or rate of drawback payable on such goods is finally determined, the amount provisionally paid to such exporter shall be adjusted against the drawback finally payable and if the amount so adjusted is in excess or falls short of the drawback finally payable, he shall repay to the Collector of Customs the excess or be entitled to the deficiency, as the case may be. (c) The bond referred to in clause (b) may be with such surety or security as the Collector of Customs may direct. (3) Where the Central Government considers it necessary so to do, it may cancel authorisation referred to in sub-rule (2) from such date as it may specify. 7. Cases where amount or rate of drawback determined is low. - (1) Where, in respect of any goods, the manufacturer or 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 four-fifth of the duties paid on the materials or components used in the production or manufacture of the said goods, he may within sixty days from the date relevant for the applicability of the amount or rate of drawback in terms of sub-rule (3) of rule 5, make an application in writing to the Central Government for fixation of appropriate amount or rate of drawback stating all relevant facts including the proportion in which the materials or components are used in the production or manufacture of goods and the duties paid on such materials or components : Provided that the Central Government may, if it is satisfied that the manufacturer or exporter was prevented by sufficient cause from making the application within the aforesaid time, allow such manufacturer or exporter to make such application within a further period of thirty days. (2) On receipt of the application referred to in sub-rule (1), the Central Government may, after making or causing to be made such inquiry as it deems fit, allow payment of drawback to such exporter at such amount or at such rate as may be determined to be appropriate, if the amount or rate of drawback determined under rule 3 or, as the case may be, revised under rule 4, is in fact less than four-fifth of such amount or rate determined under this sub-rule. (3) Where an exporter desires that he may be granted drawback provisionally, he may, while making an application under sub-rule (1) apply to the Central Government in writing in this behalf in the manner as has been provided in clause (a) of sub-rule (2) of rule 6 for the applications made under that rule and the grant of provisional drawback shall be considered in the manner and subject to the conditions specified in clauses (b) and (c) of sub-rule (2), and sub-rule (3) of rule 6, subject to the condition that bond required to be executed by the claimant shall only be for the difference between amount or rate of drawback determined under rule 3 or as the case may be, revised under rule 4, and the provisional drawback authorised by the Central Government under this rule. 8. Cases where no amount or rate of drawback is to be determined. - (1) No amount or rate of drawback shall be determined in respect of any goods under rule 3, rule 6 or, as the case may be, rule 7, the amount or rate of drawback of which would be less than two percent of the F.O.B. value thereof, except where the amount of drawback per shipment exceeds five thousand rupees. (2) No amount or rate of drawback shall be determined in respect of any goods or class of goods under rule 6 or rule 7, as the case may be, if the export value of each of such goods or class of goods in the bill of export or shipping bill is less than the value of the imported materials used in the manufacture of such goods or class of goods, or is not more than such percentage of the value of the imported materials used in the manufacture of such goods or class of goods as the Central Government may, by notification in the Official Gazette, specify in this behalf. 9. Power to require submission of information and documents. - For the purpose of - (a) determining the class or description of materials or components used in the production or manufacture of goods or for determining the amount of duty paid on such materials or components, or (b) verifying the correctness or otherwise of any information furnished by any manufacturer or exporter or other persons in connection with the determination of the amount or rate of drawback, or (c) verifying the correctness or otherwise of any claim for drawback, or (d) obtaining any other information considered by the Central Government to be relevant or useful, any officer of the Central Government specially authorised in this behalf by an Assistant Collector of Customs or of Central Excise, may require any manufacturer or exporter of goods or any other person likely to be in possession of the same to furnish such information and to produce such books of account and other documents as are considered necessary by such officer. 10. Access to manufactory. - Whenever an officer of the Central Government specially authorised in this behalf by an Assistant Collector of Customs or of Central Excise, considers it necessary, the manufacturer shall give access at all reasonable times to the officer so authorised to every part of the premises in which the goods are manufactured, so as to enable the said officer to verify by inspection the process of, and the materials or components used for the manufacture of such goods, or otherwise the entitlement of the goods for drawback or for a particular amount or rate of drawback under these rules. 11. Procedure for claiming drawback on goods exported by post. -(1) Where goods are to be exported by post under a claim for drawback under these rules, (a) the outer packing carrying the address of the consignee shall also carry in bold letters the words "DRAWBACK EXPORT"; (b) the exporter shall deliver to the competent Postal Authority, alongwith the parcel or package, a claim in the form at Annexure I, in quadruplicate, duly filled in. (2) The date of receipt of the aforesaid claim form by the proper officer of Customs from the postal authorities shall be deemed to be date of filing of drawback claim by the exporter for the purpose of section 75A and an intimation of the same shall be given by the proper officer of customs to the exporter in such form as the Collector of Customs may prescribe. (3) In case the aforesaid claim form is not complete in all respects, the exporter shall be informed of the deficiencies therein within fifteen days of its receipt from postal authorities by a deficiency memo in the form prescribed by the Collector of Customs, and such claim shall be deemed not to have been received for the purpose of sub-rule (2). (4) When the exporter complies with the requirements specified in the deficiency memo within thirty days of its return, he shall be issued an acknowledgement by the proper officer in the form prescribed by the Collector of Customs and the date of such acknowledgement shall be deemed to be date of filing the claim for the purpose of section 75A. 12. Statement/Declaration to be made on exports other than by Post. - (1) In the case of exports other than by post, the exporters shall at the time of export of the goods - (a) state on the shipping bill or bill of export, the description, quantity and such other particulars as are necessary for deciding whether the goods are entitled to drawback, and if so, at what rate or rates and make a declaration on the relevant shipping bill or bill of export that - (i) a claim for drawback under these rules is being made; (ii) the duties of Customs and Central Excise have been paid in respect of the containers, packing materials and materials used in the manufacture of the export goods on which drawback is being claimed and that in respect of such containers or materials no separate claim for rebate of duty under the Central Excise Rules, 1944 has been or will be made to the Central Excise authorities; (b) furnish to the proper officer of Customs, a copy of shipment invoice or any other document giving particulars of the description, quantity and value of the goods to be exported. (2) Where the amount or rate of drawback has been determined under rule 6 or rule 7, the exporter shall make an additional declaration on the relevant shipping bill or bill of export that - (a) there is no change in the manufacturing formula and in the quantum per unit of the imported materials or components, if any, utilised in the manufacture of export goods; and (b) the materials or components, which have been stated in the application under rule 6 or rule 7 to have been imported, continue to be so imported and are not being obtained from indigenous sources. 13. Manner and time for claiming drawback on goods exported other than by post. - (1) A claim for drawback under these rules shall be filed in the form prescribed at Annexure II within three months from the date relevant for the applicability of amount or rate of drawback in terms of sub-rule (3) of rule 5 : Provided that the Assistant Collector of Customs may, if he is satisfied that exporter was prevented by sufficient cause from filing his claim within the aforesaid period of three months, allow the manufacturer-exporter to file his claim within a further period of three months. (2) The claim shall be filed in triplicate alongwith the following documents, namely :- (i) Pre-Receipt for drawback claim in the prescribed form prescribed by the Collector of Customs. (ii) Triplicate copy of Shipping bill. (iii) Copy of Bank Certified Invoice. (iv) Copy of Packing list. (v) Copy of Bill of Lading/Airway Bill. (vi) Copy of AR 4 Form, whenever applicable. (vii) Insurance certificate where necessary. (viii) Copy of Test Report where the goods have been subjected to a test. (ix) Copy of communication regarding rate of drawback where the drawback claim is for a rate determined by the Central Government under rule 6 or rule 7 of these rules. (x) Declaration to be filed by the exporter under these rules. (xi) Any other documents as may be specified, in the deficiency memo. (3) The date of filing of the claim for the purpose of section 75-A, shall be the date of affixing the Dated Receipt Stamp on the claims which are complete in all respects, for which an acknowledgement shall be issued in such form as may be prescribed by the Collector of Customs. (4) (a) Any claim which is incomplete in any material particulars or is without the documents specified in sub-rule (2), shall not be accepted for the purpose of section 75-A and such claim shall be returned to the claimant with a deficiency memo in the form prescribed by the Collector of Customs within fifteen days of submission and shall be deemed not to have been filed. (b) Where the exporter complies with the requirements specified in the deficiency memo within thirty days from the date of receipt of deficiency memo, the same will be treated as a claim filed under sub-rule (1). (5) Where any order for payment of drawback is made by the Collector (Appeals), Central Government or any Court against an order of the proper officer of Customs, the manufacturer or exporter may file a claim in the manner prescribed in this rule within three months from the date of receipt of the order so passed by the Collector (Appeals), Central Government or the court, as the case may be. (6) For computing the period of three months prescribed under sub-rule (4) for filing of a claim by the exporter, the time taken in testing of the export goods, where such goods were subjected to test, in excess of one month, shall be excluded. 14. Payment of drawback and interest. - (1) The drawback under these rules and interest, if any, shall be paid by the proper officer of Customs to the exporter or to the agent specially authorised by the exporter to receive the said amount of drawback and interest. (2) The officer of Customs may combine one or more claims for the purpose of payment of drawback and interest, if any, as well as adjustment of any amount of drawback and interest already paid and may issue a consolidated order for payment. (3) The date of payment of drawback and interest, if any, shall be deemed to be, in the case of payment - (a) by cheque, the date of issue of such cheque, or (b) by credit in the exporter's account maintained with the Custom House, the date of such credit. 15. Supplementary claim. - (1) Where any exporter finds that the amount of drawback paid to him is less than what he is entitled to on the basis of the amount or rate of drawback determined by the Central Government, he may prefer a supplementary claim in the form at Annexure III : Provided that the exporter shall prefer such supplementary claim within a period of three months. - (i) Where the rate of drawback is determined or revised under rule 3 or rule 4, from the date of publication of such rate in the official Gazette; (ii) Where the rate of drawback is determined or revised upward under rule 6 or rule 7, from the date of communicating the said rate to the person concerned; (iii) in all other cases, from the date of payment or settlement of the original drawback claim by the proper officer. (2) Save as otherwise provided in this rule, no supplementary claim for drawback shall be entertained. (3) The date of filing of the supplementary claim for the purpose of section 75-A shall be the date of affixing the Dated Receipt Stamp on such claims which are complete in all respects and for which an acknowledgement shall be issued in the form prescribed by the Collector of Customs. (4) (a) Claims which are not complete in all respects or are not accompanied by the required documents shall be returned to the claimant with a deficiency memo in the form prescribed by the Collector of Customs within fifteen days of submission and shall be deemed not to have been filed. (b) Where the exporter complies with requirements specified in the deficiency memo within thirty days from the date of receipt of deficiency memo the same will be treated as a claim filed under sub-rule (1). 16. Repayment of erroneous or excess payment of drawback and interest. - Where an amount of drawback and interest, if any, has been paid erroneously or the amount so paid is in excess of what the claimant is entitled to, the claimant shall, on demand by a proper officer of Customs repay the amount so paid erroneously or in excess, as the case may be, and where the claimant fails to repay the amount it shall be recovered in the manner laid down in sub-section (1) of section 142 of the Customs Act, 1962 (52 of 1962). 17. Power to relax. - If the Central Government is satisfied that in relation to the export of any goods, the exporter or his authorised agent has, for reasons beyond his control, failed to comply with any of the provisions of these rules, and has thus been entitled to drawback, it may, after considering the representation, if any, made by such exporter or agent, and for reasons to be recorded in writing, exempt such exporter or agent from the provisions of such rule and allow drawback in respect of such goods. 18. Repeal and saving. - (1) As from the commencement of these rules, the Customs and Central Excise Duties Drawback Rules, 1971 (hereinafter in this rule referred to as the 1971 Rules) shall cease to operate. (2) Notwithstanding such cesser of operation - (a) every application made by a manufacturer or exporter for the determination or revisions of the amount or rate of drawback in respect of goods exported before the commencement of these rules but not disposed of before such commencement shall be disposed of in accordance with the provisions of the 1971 Rules as if these rules had not been made; (b) any claim made by an exporter or his authorised agent for the payment of drawback in respect of goods exported before the commencement of these rules but not disposed of before such commencement shall be disposed of in accordance with the provisions of these rules; (c) where a manufacturer or exporter has exported any goods before the date of commencement of these rules and has not filed any claim for payment of drawback, such manufacturer or exporter may file his claim within a period of three months from the date of commencement of these rules, in the manner prescribed in rule 13; (d) every amount or rate of drawback determined under the 1971 Rules and in force immediately before the commencement of these rules shall be deemed to be the amount or rate of drawback determined under these rules until altered or superseded by the Central Government. FORM FOR CLAIM OF DRAWBACK UNDER RULE 11 ANNEXURE-I FORM D Original Duplicate Triplicate Quadruplicate Ref. Dbk. Invoice No. Dated : PARTICULARS OF GOODS TO BE EXPORTED BY PARCEL POST UNDER CLAIM FOR DRAWBACK FORM NO. To The Assistant Collector of Customs (Drawback) Foreign Post Office, We,....................................................propose to export the undermentioned consignment. Name and Address of the Consignee S.No. Date of Parcels Gross Weight Marks/No. on Pcs. Qty. 1 2 3 4 5 FOB Value Rate of net Dbk Weight Amount Rs. P. 6 7 8 9 1. Certified that the goods were not taken into use after the manufacture. 2. Certified that no separate claim for rebate of duty has been made or will be made to the Central Excise Authorities under rules 12 and rule 191B as in force immediately before Ist October, 1994 or under rule 13 of Central Excise Rules, 1944 and that the Customs and Central Excise duty has been paid on the raw material used in the manufacture of the goods. We hereby declare that the declaration made herein is true and correct. Office seal of Signature Manufacturer/Exporter Name Dated : Designation Place : ANNEXURE-II FORM FOR CLAIM OF DRAWBACK UNDER RULE 13 Customs Form No........... To The Asstt. Collector of Customs, Drawback Department, (Name Address of the Custom House) Sub : Drawback claim under Sec. 75 of the Customs Act, 1962 We wish to lodge this claim for Drawback of duty of Customs as per the details below together with copies of all the relevant documents : 1. Shipping Bill No. date : 2. Invoice No. date : 3. Bill of Lading or Airway Bill No. date : 4. Description and quantity of goods exported : 5. Drawback sub-serial No. : 6. F.O.B. value present market value of goods : 7. Calculation of drawback claim (worksheet attached) : 8. Indicate whether the claim is as per brand rate : 9. Brand rate letter No. date and its validity period : 10. Indicate particulars of Test report Test bond (wherever necessary) : 11.No. of enclosures* : DECLARATION I,____________________________________, the applicant representing the exporter _____________________ do hereby declare that what is stated above is true to the best of my information and belief, I also declare that no drawback has been claimed earlier pertaining to and Shipping Bill No. __________________________ dated ____________. (Signature of the Applicant) *Please attach a list of documents enclosed. Refer Rule 13 of Customs and Central Excise Duties Drawback Rules, 1995. ANNEXURE III APPLICATION FOR SUPPLEMENTARY CLAIM FOR DRAWBACK UNDER RULE 15 OF CUSTOMS AND CENTRAL EXCISE DUTIES DRAWBACK RULES, 1995 (Where the drawback received falls short of the rate finally fixed by the government, application for supplementary claim of drawback should be made in the following form) To The Assistant Collector of Customs-in-Charge Drawback Department. We hereby make a supplementary claim for drawback of Customs/Central Excise which has been less paid to us as explained herein. 1. Exporter (a) Name (b) Address (c) Telephone No. (d) Name of Clearing Agent. 2. Goods exported (a) Description (b) Quantity (i) Gross (ii) Net (c) Marks No. (d) Destination (e) Shipping Bill No. Date 3. Vessel (a) Name (b) Rotation No. 4. Drawback already paid (a) Amount (b) Custom House Reference No. (c) Quantity/Value on which allowed (d) Rate at which allowed 5. Drawback now claimed (a) Amount (b) Quantity/Value on which allowed (c) Rate at which claimed 6. Reason for the supplementary claim. 7. No. of documents enclosed.* DECLARATION 1. I/We hereby declare that the supplementary claim of drawback is based on the Customs and Central Excise Duties paid on the raw materials used in the manufacture of goods/exported the duties so paid have not been claimed as rebate under the Central Excise Rules, 1944. 2. I/We hereby declare that the declaration made herein is true and correct. Signature _____________ Designation ______________ *Please enclose copy of communication regarding rate of drawback determined under rule 6 or 7, any other document in support of supplementary claim, or other documents as may be prescribed by Collector of Customs. Please also enclose calculation sheet. Notification No. 37/95-Cus. (N.T.), dated 26-5-1995]