Preparación de conductos estrechos y/o calcificados

The procedure for claiming these incentives is different for different incentives.

Duty Drawback (DBK)

The duty drawback refers to the to the refund in respect of Central Excise and Customs Duties paid in respect of raw materials and other inputs used in the manufacture of the product, prior to export.

Whom to Apply: The customs house in whose jurisdiction the exporter’s factory or warehouse is situated.

When to Apply: An exporter is entitled to claim the duty drawback as soon as the export of goods is completed. Delivery of goods at the port of destination is not essential. ‘Export’ for the purpose of claiming duty drawback is evidenced by “Let Export Order”. Claim application is to be submitted with in a period of three months from the date of “Let Export Order”, issued by the Customs Officer. The exporter can seek extension of period for submission of claim. The Assistant Commissioner can grant extension for a period of three months, if he is satisfied that the exporter is prevented from submitting the application.

When Samples are Drawn: In case, any sample has been drawn from the shipment of goods to determine the contents of the basic materials for fixation of drawback, the sample report is to be given to the exporter within a period of one month from the date of taking the sample. This report is to be submitted along with other relevant documents for submitting the claim. Delay in giving the report will be added to the period allowed for submission i.e. three months period. For example, if the sample report is given after one month and twenty-five days, the exporter can submit the claim within three months and twenty-five days, in addition to the discretionary extension period of three months.

Drawback Rates: The Government of India announces the rates of duty drawback every year on 31st May, product wise in the drawback schedule. Generally, the rates are expressed as a percentage of the FOB value of the goods exported. All such rates are called All Industry Rates. The rates are made effective from 1st June of every year. In case, duty drawback rate is not announced for a particular product, the manufacturer/exporter can submit an application, in the prescribed format, for determination of duty drawback for that particular product. The rates fixed on the individual request of the manufacturer/exporter is known as Brand Rate. In case, the rate of duty drawback is less than 80% of the duties paid, the exporter can submit an application for suitable upward revision. This is known as Special Brand Rate. The application is to be submitted to Directorate of Duty Drawback, Ministry of Finance.

When Duty Drawback not Admissible: Duty drawback is admissible for the export of all the notified products. However, in the following cases, it is not admissible:

(a) No excise/customs duty is paid for the manufacture of the export product

(b) Amount of drawback is less than 1% of the FOB value of the goods. However, if the amount of drawback is more than Rs. 500, it can be claimed

(c) If the export proceeds are not realised within six months

(d) If the amount of foreign exchange spent on the inputs used for the export is more than the foreign exchange value of the exports. In other words, value addition is negative

(e) Cenvat Credit is availed of

How to File Claim: The procedure for claiming duty drawback depends upon whether the processing of shipping documents has been computerised or not. The exporter is not required to file any separate application for claiming duty drawback, if the processing of documents has been computerised at the jurisdiction customs station. Where processing has not been computerised, separate application is to be submitted for claiming duty drawback. Triplicate copy of the shipping bill becomes the application for claiming duty drawback. The customs station processes the application only after the Export General Manifest is filed. Documents to be submitted: The following documents are to be submitted to the Directorate of Duty Drawback:

(a) Triplicate copy of the Shipping Bill (b) Copy of bank attested invoice (c) Copy of Packing List

(d) Copy of Bill of Lading/Airway Bill (e) Copy of ARE-1 form, where applicable

(f) Insurance Certificate, where necessary (g) Copy of the Test Report, where required

(h) Copy of communication regarding Special Brand Rate fixation (i) Copy of the export contract or letter of credit as the case may be (j) Pre-receipt for drawback claim

How Claim Amount is Paid: The customs House that has the jurisdiction over the port or airport through which exports are effected makes the payment.

How Delay in Payment of Claim is Avoided: When the claim application along with complete set of documents is submitted, an acknowledgment in the prescribed form is issued to the exporter within 15 days from the date of filing the claim. The duty drawback is to be paid to the exporter within a period of two months from the date of acknowledgment. In case of delay, interest @15% per annum is paid for the period of default. Due to compulsory interest provision, normally, claims are settled in time.

What Happens if Wrong/Excess Payment is Made: In case, exporter fails to realise export proceeds within a period of six months, then the Directorate of Duty Drawback sends a notice to the exporter to refund the amount of duty drawback. Exporter has to refund within a period of three months from the date of notice. In case of default, the exporter has to pay interest at the rate of 20% per annum.

Duty Drawback Credit Scheme

As an export promotion measure, the Government of India has authorised Reserve Bank of India to instruct Authorised Dealers in foreign exchange to grant interest-free credit, against the duty drawback claim, to the exporters. The greatest advanatages are interest free element on credit and release of funds blocked in the form of customs duty and excise duty incidence on the inputs. The interest free credit is for a period of 90 days. Payment of Duty drawback is to be made by the Directorate of Dutydrawback within a period of two months otherwise interest is to be paid @ 15% for the period of default. By providing drawback credit on interest free basis, virtually, exporter’s funds blocked in customs duty and excise duty on inputs and raw materials are released to him, after shipment. This credit is given to exporter against duty drawback claim, which is pending scrutiny, sanction and payment. This scheme is applicable only if excise duty has been determined on All Industry Rates or Brand Rate basis.