Duty drawback

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Arun (Querist)
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17 December 2012 Can you please explain me this Statement:-
No drawback will be determined (i)if it is less than 1% of FOB value, except where the amount of drawback per shipment exceeds Rs.500/-
give an example if possible?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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18 December 2012 for instance, exporter export the EGGS UNDER CHAPTER 0407 of fob value in inr 48000.00

as per current DRAWBACK schedule INCENTIVE IS available 1% ON FoB )if cenvat facility Not availed by exporter.

duty drawback will be now,

48000*1%= 480

48000 (is fob value in INR)

1% RATE IS DRAWBACK WHEN EXPORTER DOES NOTAVAIL CENVAT .
therefore as per department rule No drawback is admissible where the amount or rate of drawback works out to less than 1% of the f.o.b. value of the product, except cases where the amount of drawback exceeds Rs. 500 per Shipping Bill.

further info:

https://www.eximkey.com/contents/showpage1.asp?pageid=5840

Arun

Arun (Querist)
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26 December 2012 Thank you sir

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