Drawback - No limit on payment if it exceeds 2% or Rs. 5000/-

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..... and Central Excise Duties Drawback Rules, 1971 or rule 8 of Customs and Central Excise Duties Drawback Rules, 1995. Instances have been brought to the notice of the Board that some Customs Houses are not allowing drawback where the drawback exceed 2% of the FOB value but it less than Rs. 5000 per shipment. This practice appears to be based on the misconception that drawb .....

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..... ection 76 of the Customs Act. Similarly, in all cases where the amount of drawback payable is Rs. 5000 or more, the limit of 2% of FOB value is not applicable and in such cases drawback is payable even if it is less than 2% of the FOB value. This clarification may please be brought to the notice of all concerned for proper processing of drawback claims. Sd/- (A.K. Madan) Und .....

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