Brc and firc

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2011 It is find that FIRC is not mandatory as per FEDAI rule.
Pl. confirm and advise...
what is the procedure for getting DUTY DRAW BACK, when it is not credited automatically on EXPORT transactions.

Is it necessary to get BRC and file the return with RBI

If so, what is the procedure and forms and when is the last date for filing the returns under FEMA and RBI guidlines.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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17 August 2011 DEAR ANONYMOUS,

FOREIGN INWARD REMITTANCE CERTIFICATE (FIRC) IS ISSUED WHEN THE PAYMENT SEND TO BUYER TO SELLER. IT CAN BE ALSO IN ADVANCE.

WHEN THE BANK ISSUED THE FIRC BANK ISSUED THE BRC AFTER SUBMITTING THE GR/ SDF IN BANK WITHIN 21 DAYS .

WHEN EVER YOU SUBMIT THE BRC IN CUSTOM THEY REALIZED THE DRAWBACK OTHERWISE THE SUPERINTENDENT OF CUSTOM REALIZED THE AMOUNT AS PER MENTIONED IN BRC COLUMN NO. 14 .

The term drawback is applied to a certain amount of duties of Customs/central excise, some times the whole, some times only a part remitted or paid by Government on the exportation of the commodities on which they were levied. To entitle goods to drawback, they must be exported to a foreign port, the object of the relief afforded by the Drawback being to enable the goods to be disposed of in the foreign market as if they had never been taxed at all. For Customs purpose drawback means the refund of duty of customs and duty of central Excise that are chargeable on imported and indigenous materials used in the manufacture of Exported goods.

TYPES OF DRAWBACK

There are two types of drawback. One is called drawback under Section 74 of the Customs Act, 62 which allows drawback of duty paid on goods originally imported on payment of duty and subsequently re-exported. The manner and time limit for filing the claims are governed by "Re- export of Imported Goods (Drawback of Customs duties) Rules, 1995.

1. The other scheme is payment of drawback under Section 75 and Rules made thereunder at specified rated on export of goods manufactured in India. The manner and time limit for filing the claims are prescribed under the Customs and Central Excise Duties Drawback Rules 1995 as amended from time to time.

2. The Central government notifies the Drawback rates for various products either on a general basis (all industry rates) or for individual exporters( brand rates) as the case may be. Drawback sanctioned under section 75 has a two tier system involving (i) fixation of rates by the Directorate of Drawback in the Central Board of Excise and Customs and (ii) disbursement of drawback amount by the Customs Houses and/ Central Excise Commissionerate.

FOR MORE INFORMATION:-

https://customsmangalore.gov.in/duty-draw-back.htm