Board Explains New Drawback
FIRST a disclaimer: Though all care has been taken, the possibility of inadvertent errors/omissions cannot be ruled out. It is requested that any error/omission noticed during the implementation of the rates be brought to the notice of the Board immediately for suitable corrective action.
Be Prepared for the Rush: Benefits under the DEPB scheme are available only up to September 30, 2011. Thus, all exports under DEPB scheme up to and including September 30, 2011, where the “Let Export Order” (LEO) has been issued by the Customs officer shall be eligible for the issue of DEPB Scrips. Since, export consignments with ‘Let Export Order' after this date would no longer be eligible for benefits under the DEPB scheme, it is likely that there may be a rush of DEPB export consignments before this date causing extra load on the EDI system.
Board wants all Custom officers posted at ports to take due care and ensure that DEPB export consignments are accorded priority and processed/cleared expeditiously. Further, officers handling export assessment/examination with specific regard to DEPB Shipping Bills must ensure that the bills in the EDI queue are cleared expeditiously. If for any valid reason, the LEO cannot be given on the EDI on the said date, then the Commissioner of Customs may allow an endorsement of the LEO on the DEPB shipping bills manually. However, this may only be allowed as an exception.
No CENVAT facility means no credit of inputs and input services: The expression “When Cenvat facility has not been availed”, as far as the drawback provisions are concerned, has always meant Cenvat facility on inputs and input services, and is to be understood as such. The drawback notification has been suitably amended to further clarify the matter.
Vehicles: At present the DEPB rates are available for two wheelers, three wheelers, commercial vehicles and tractors. Appropriate duty drawback rates have been provided for these items in the proposed schedule without any value cap. Exporters of passenger cars are presently opting for brand rate of duty drawback. Government has received requests from these exporters; appropriate All Industry Rate of duty drawback for export of Passenger Cars has been provided in this year's Drawback Schedule.
Basis for Determination: As in previous years, the drawback rates have been determined on the basis of certain broad parameters including, inter alia , the prevailing prices of inputs, Standard Input Output Norms (SION), share of imports in the total consumption of inputs, FOB value of export goods and the applied rates of duty. The incidence of duty on HSD/Furnace Oil has been factored in the drawback calculations. The incidence of service tax paid on taxable services, which are used as input services in the manufacturing, or processing of export goods has also been factored. Board wants Commissioners to ensure that the exporters do not avail of the refund of this tax through any other mechanism while claiming the All Industry Rates of duty drawback.
CBEC Circular No. 42/2011-Cus., Dated: September 22, 2011