Duty Drawback Scheme - CAG finds Procedural Deficiencies and Absence of Clear Provisions
CAG Observed:
++ No supplementary rules have been framed under Section 74(3) of the Customs Act, 1962 laying down the parameters for identification of goods in case of re-exports.
++ The Board has not issued instructions specifying how to determine whether goods were "used" or not.
++ Delays in claim processing and absence of floor value in the Customs Valuation rules for freight charges on exported goods.
++ Market verification of the declared price had not been initiated in cases where there was material difference between the declared price and declared market value.
++ Fixation of All Industries Rate of drawback had not been fully documented.
++ Instances of non compliance to rules and provisions on processing of time barred claims, delay in fixation of brand rates, sanction of drawback on products not specified in brand rate letters and excess payment of drawback due to mis-classification.