Exports under Duty Drawback Scheme - CAG Objections - CBEC Instructions
IN its Report No. 15/2011-12, the CAG had found fault with the Revenue in administration of Drawback Scheme ( - 01 09 2011). Now the CBEC has issued certain instructions:
Instructions relation to "identification of goods” and "determination of use” in terms of Section 74 of the Customs Act, 1962.
It may be ensured that in all such cases where drawback under section 74 is claimed, the Assistant/Deputy Commissioner of Customs shall pass a speaking order giving detailed reasons with regard to establishing the identity or otherwise of the goods under re-export, and determination of use, if any, while sanctioning Duty Drawback or otherwise. It may further be noted that the detailed speaking orders, following the principles of natural justice, are to be issued in both cases, i.e. where drawback is proposed to be sanctioned (either in full or part) or proposed to be denied.
General Instructions with regard to expeditious processing of drawback claims under both Section 74 and Section 75 of the Customs Act, 1962.
(a) While processing Drawback claims, whether under Section 74 or Section 75, wherever any deficiency is noticed in the claim, the same shall be communicated to the exporter in a clear unambiguous manner within a period of 10 days, from the date of filing of the claim. Further, the drawback claims shall be disbursed in accordance with the timelines as specified in the Citizen's charter adopted by the department and the Sevottam standards prescribed in this regard. Commissioners of Customs shall undertake a periodic review and monitoring of the status of pending drawback claims.
(b) The field formations shall ensure that periodic sample checks and verifications are carried out with respect to the export declarations including classification, descriptions, weight etc.; It shall be also ensured that the brand rate drawback claims are disposed off in a time bound manner.
(c) The field formations shall ensure the proper data entry in BRC module of EDI system. Commissioner of Customs shall constitute a special monitoring cell in their respective formations for periodic verification and monitoring of the same. The Monitoring cell will also ensure that the necessary action is taken against the defaulter exporters.
(d) All previous circulars and instructions issued by the Board in this regard shall be strictly followed.
Board, as usual wants these instructions to be strictly complied with.
CBEC Circular No. 46/2011-Cus., Dated: October 20, 2011