Duty Drawback -Government Notifies New AIR
FRIDAY's DDT 2189 had mentioned that the Finance Minister had directed a downward revision of Drawback rates and the very next day they have been reduced. Please recall our extract from the minutes of the Chief Commissioners' Conference,"
Drawback: It was pointed out that in the first quarter of the year, drawback refunds have increased by 47% as compared to last year. It was observed that drawback under All Industry Rate is fixed in terms of ‘Indian Currency' and hence, drawback refund outgo will be high despite the decline in the export due to depreciation of Rupee. FM directed that All Industry Rates be re-fixed considering the devaluation of Indian currency and the revised rate should be made effective from 01.04.2013.
Fortunately they are not given retrospective effect. The new Rates will come into effect from 21.09.2013. The last revision was on 10th October 2012 by Notification No. 92/2012-Cus NT, which is now superseded.
The Notes and Conditions are almost identical, but the rates have gone down in most cases. The Press Note issued by the Ministry states, "With the revised rates, the Central Government will continue to support exporters with substantial total drawback.”
Notification No. , Dated: September 14, 2013