Regarding Recovery of drawback amount on the portion of the FOB value of export not realized by the exporter but compensated by ECGC

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..... entral Excise/Customs & Central Excise. All Commissioners of Customs/Customs (P)/Customs & Central Excise /Central Excise. All Director Generals of CBEC, Chief Departmental Representative of Customs Excise & Service Tax Appellate Tribunal. Sub: Recovery of drawback amount on the portion of the FOB value of export not realized by the exporter but compensated by ECGC - reg. Sir/Madam, I am di .....

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..... s where export proceeds have not been realized has to be recovered. 2. However, it has been brought to notice of the Board that some exporters are resisting recovery of drawback in cases where export proceeds have not been realized citing provisions in Handbook of Procedure (HBP) (Vol.1) of the Foreign Trade Policy (FTP) discussed below. 3. Para 2.25.1 of the Handbook of Procedure (HBP) (Vol.1) .....

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..... s a certificate from the concerned foreign Mission of India about the fact of non-recovery of export proceeds from the buyer. However, this would not be applicable in self-write off cases. 5. Since the Drawback scheme is governed by the provisions of the Customs Act, 1962 and the Rules made there under which clearly provide that drawback should be recovered if sale proceeds have not been realized .....

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