RAMESH KUMAR VERMA
( Expert )
16 July 2012
When any goods imported on payment of duty are re-exported, the amount of duty paid on such goods at the time of import is refunded. Such refund is known as Drawback under Section 74 of The Customs Act 1962.
The exporter has to make a separate claim in the prescribed form, within three months from the date of order permitting clearance and loading of goods for export i.e., the date of Let Export Order”. The three months time limit may be extended by further three months by the Assistant Commissioner of Customs, if he is satisfied that the exporter was prevented by sufficient cause to file his claim within three months period.
Full amount of duty paid on importation is not refundable, when such goods re-exported. If the goods were not taken into use after importation, 98 percent of the amount of duty paid at the time of import is refundable as Drawback. However, if the goods were taken into use after importation an before they were re-exported, Drawback is paid taking into consideration the period of usage of such goods, depreciation in value and other relevant circumstances. The Government fixes the rate of Drawback in such cases by issue of notification. As per the Notification No. 23/2008-Cus Dated 1/3/2008 presently in force, no drawback is payable if the period of usage is over 18 months.
In the case of re-exports other than by post the exporter has to file a Shipping Bill or Bill of Export in the prescribed form with the Customs and make a declaration on such document to the effect that –
i) The export is being made under a claim for drawback under Section 74 of the Customs Act.
ii) That the duties of customs were paid on the goods imported.
iii) The goods were not taken into use after importation.
The goods were taken into use.
As per Rule 5 of the Re-Export Of Imported Goods (Drawback Of Customs Duties) Rules, 1995, a claim for drawback under these rules shall be filed in the form at Annexure II within three months from the date on which an order permitting clearance and loading of goods for exportation under section 51 is made by proper officer of customs:
Provided that the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, if he is satisfied that the exporter was prevented by sufficient cause to file his claim within the aforesaid period of three months, allow the exporter to file his claim within a further period of three months.
(2) The claim shall be filed alongwith the following documents, namely :-
(a) Triplicate copy of the Shipping Bill bearing examination report recorded by the proper officer of the customs at the time of export.
(b) Copy of Bill of Entry or any other prescribed document against which goods were cleared on importation.
(c) Import invoice.
(d) Evidence of payment of duty paid at the time of importation of the goods.
(e) Permission from Reserve Bank of India for re-export of goods, wherever necessary.
(f) Export invoice and packing list.
(g) Copy of Bill of lading or Airway bill.
(h) Any other documents as may be specified in the deficiency memo.
(3) The date of filing of the claim for the purpose of section 75A shall be the date of affixing the Dated Receipt Stamp on the claims which are complete in all respects, and for which an acknowledgement shall be issued in such form as may be prescribed by the Commissioner of Customs.