9911796707
TMI BlogFixation of brand rate of duty drawback by the Central Excise field formations under Rules 6 and 7 of the Customs and Central Excise Duties Drawback Rules, 1995 - Removal of difficulties – regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... /2003-Cus(N.T.) dated 3.3.2003. 2. The fixation of duty drawback under Rule 6 (i.e. Brand Rate) in respect of those export products which do not figure in the All Industry Rate of Drawback Table or under Rule 7 (Special Brand Rate) where the exporters apply for such fixation on account of inadequate rebate of input stage duties through All Industry Rate, was earlier centralised in the Ministry. However, as a measure of decentralisation and trade facilitation, the powers for fixation of brand rate and special brand rate have been delegated to the jurisdictional Commissionerates of Central Excise through the amended Duty Drawback Rules. For the convenience of the field formations and for the guidance of the trade, a comprehensive Customs Ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n finished/lining leather into the total duty drawback rate while calculating the drawback rate for export products manufactured from finished/lining leather. Field formations are, therefore, advised that while computing the brand rate of drawback for leather articles including footwear, the All Industry Rate available on finished/lining leather may be considered on the consumption of finished/lining leather in the export product. Illustration: Supposing, the leather product exported is ready-made garment. It involved predominant usage of indigenous finished leather, imported synthetic lining material, duty paid imported zippers and metallic buttons. In this case, in respect of the imported materials, the exporter would be required to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , bicycle bell (SS No. 87.52), bicycle stand (SS No. 87.106), carrier(SS No. 87.63) and freewheel multi-speed (SS No. 87.112). Brand rate of drawback in this case should be calculated by including following components:- · All Industry Rate of duty drawback appearing at SS No.87.44, · All Industry Rates of duty drawback for various accessories appearing in the Duty Drawback Table, in respect of which the exporter proves the usage of these accessories but does not furnish any duty paying documents, i.e., bicycle bell (SS No. 87.52), bicycle stand (SS No. 87.106), carrier(SS No. 87.63) and freewheel multi-speed (SS No. 87.112). · Central Excise duty paid invoices as regards indigenous seat cover and indigenous front basket. · Duty p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r produces an invoice from the bus body builder indicating the cost of the bus body. Let us say, in this case, the cost of the body building is Rs.3,90,000.00. The duty drawback on account of body building shall be allowed @ 7%, i.e., Rs.27,300.00. The exporter would be eligible for total drawback rate of Rs.58,861.00, i.e., 31,561.00 (Customs allocation) + Rs.27,300.00 (Central Excise allocation). ( c) Fixation and approval of brand rate of duty drawback as laid down in para 3(d)(i) of Circular No.14 /2003 vis-à-vis the provision of post-audit prescribed in para 3(d)(ix). The function of the post-audit is to safeguard the revenue by pointing out errors whether in the nature of calculation mistake or wrong application of rules/regula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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