Application for Fixation of Brand Rate under Rule 7(1) of the Drawback Rules, 1995 after exporter avails All Industry Rate Drawback under Rule 3 by virtue of his declaration on the shipping bill to avail AIR of drawback.

Document Text

F. No.606/04/2011-DBK Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs New Delhi Dated: December 30, 2011 Subject: Application for Fixation of Brand Rate under Rule 7(1) of the Drawback Rules, 1995 after exporter avails All Industry Rate Drawback under Rule 3 by virtue of his declaration on the shipping bill to avail AIR of drawback – Regarding. Kindly 12.10.2011/02.12.2011 regarding the issue cited in the subject above. letters F.No.PI/BRU/D-IV/Atlas/47/11 dated to your refer 2. On examining the matter it is noted that: a) As per Rule 7 of the Drawback Rules, 1995, if the exporter finds that the amount or rate of Drawback determined under notified AIR drawback under rule 3 or 4 is less than four fifth of the duties & taxes suffered on Inputs/input services used in manufacture of export goods, he may within specified period apply before jurisdictional Central Excise Commissioner for determination of amount or rate of drawback (Brand Rate). Here, it must be kept in mind that the AIR drawback determined under rule 3 or 4 of the Drawback Rules is specified in the Drawback Schedule by notification. The exporter can compare this with the facts of his case and decide if it is less than four fifth of the duties & taxes suffered and also whether he wants to apply for fixation of Brand Rate in his case. the b) If the exporter chooses to opt for Brand Rate, then the exporter makes declaration in the Shipping Bill mentioning drawback sub serial/ tariff item number as 9801. Then, within the specified time from let expert date, the exporter applies for Brand Rate of drawback before the jurisdictional Central Excise authority. During the pendency of this application, the exporter may be allowed the facilitation under the Board's Circular No. 10/2003 subject to necessary conditions. c) After the jurisdictional Central Excise authority fixes/sanctions Brand Rate, the matter goes back to the customs at the port of export for making the requisite payment, with reference to the exporter's declaration of having opted for Brand Rate by specifying the drawback tariff item no. as 9801 in the Shipping Bill at the time of export. It is this option that enables the Shipping Bill to be brought back into drawback queue for payment of Brand Rate. d) Thus, provisions do not provide that an exporter can avail the AIR Drawback first at the time of export under specified sub serial/ tariff item number of the AIR schedule and then file for determination of the Brand Rate under Rule 7. Exporter's declaration of tariff item number other than 9801 on the Shipping Bill is declaration that he is satisfied with the AIR rate and opts for it. Any other interpretation would also undermine the entire EDI procedure in this respect.

HS Codes Referenced

Need the current duty rate?

Calculate the full duty cascade — BCD, SWS, IGST and trade remedies — for any HS code, free.