Customs - Duty Drawback Scheme - 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). CBEC had issued certain instructions in Circular No. dated 20.10.2011 ( 21.10.2011) and Circular No. dated 5.9.2013 ( - 09.09.2013):
The Audit Report highlighted aspects on the compliance side, which Internal Audit did not notice. CBEC observes that a better performance by Internal Audit would have enabled remedial actions to be taken earlier. Board directs that Commissioners should appropriately strengthen their Internal Audit wings to achieve desired diligence levels and a significantly improved performance in areas such as payment of re-export drawback, cases of manual processing of drawback and the determination/fixation of brand rates.
Board now directs:
Once a complete application for fixation of brand rate under/in terms of Rule 7 of the Drawback Rules, 1995 has been filed with the jurisdictional Central Excise w.r.t. exports made under claim of brand rate of drawback in the shipping bills and request made, on or alongside the said application, for grant of drawback on relevant AIR provisionally, the Central Excise officer who is to fix the brand rate should, ensuring that the exporter is eligible for the relevant AIR, authorize provisional brand rate letter within 7 days to claim the drawback. Apart from other pertinent details, the said letter should show the shipping bill No. and date/item wise relevant drawback tariff item No.(including whether ‘A' or ‘B' column) of the AIR Schedule, rate and cap of drawback being granted, and the amount of drawback (equivalent to the relevant AIR with cap) bifurcated into Customs and/ or Central Excise/Service Tax components. The bifurcation should be based on claim in the application for fixation of brand rate filed in terms of said Rule 7. This is so that the components remain aligned with claimed ‘actual' incidence. The final brand rate letter should adjust the provisionally granted amount. Even if brand rate request is denied, the rejection letter should be endorsed to the Customs formation with request to treat the provisional brand rate letter as final and update the record.
Daily monitoring by Commissioner, of the applications and of brand rate work by Divisions/Ranges and headquarter Unit, should be institutionalized and positive results achieved over next 3 months and maintained in future. Board requests Chief Commissioners to guide their Commissioners where the time attributable to the department exceeds prescribed time frame.
CBEC F.No.603/01/2011-DBK., Dated: October 11, 2013