Duty drawback Flashcards
What are the goods which are not entitled for duty drawback under the provisions of section 74(2), where the imported goods are used before re-exportation?
As per this notification, no drawback of import duty will be allowed in respect of the following goods, if they have been used after their importation in India:
(i) Wearing Apparel;
(ii) Tea Chests;
(iii) Exposed cinematograph films passed by Board of Film Censors in India.
(iv) Unexposed photographic films, paper and plates, and X-ray films.
What will be rate of duty drawback, if the goods are not used after importation and re-exported in the condition in which they were imported as per section 74(2)?
It implies that if these goods are not used after their importation into India and subsequently re-exported in the condition they were imported, then they would be entitled to 98% drawback.
What are the reduced drawback rates, having regard to the duration of it’s use as per section 74?
Following percentages have been fixed as the rates at which drawback of import duty shall be allowed in respect of goods which were used after their importation and which have been out of Customs control.
What is the calculation of interest on drawback as per the provisions of section 75A? -Where any drawback payable to a claimant under section 74 or 75 is not paid within a period of one month from the date of filing a claim for payment of such drawback.?
There shall be paid to the claimant, in addition to the amount of drawback, interest at the rate fixed under section 27A from the date after the expiry of the said period of one month till the date of payment of such drawback.
What is the calculation of interest on drawback as per the provisions of section 75A? Where any drawback has been paid to the claimant erroneously or it becomes otherwise recoverable under this Act or the Rules?
the claimant shall within a period of 2 months from the date of demand, pay in addition to the said amount of drawback, interest at the rate fixed under section 28AA.
and the amount of interest shall be calculated for the period beginning from the date of payment of such drawback to the claimant till the date of recovery of such drawback.
What is the prohibition and regulation of drawback as per the provisions of section 76?
Notwithstanding anything herein before contained, no drawback shall be allowed
(i) in respect of any goods, the market price of which is less than the amount of drawback due thereon,
(ii) where the amount of drawback in respect of any goods is less than fifty rupees. [Sub-section (1)]
The market price is as prevailing in India and not the price which exporter expects to receive from the foreign customer[Om Prakash Bhatia v. CC 2003(155) ELT 423 (SC)].
Also when the goods are likely to be smuggled back into India, then duty drawback shall not be allowed in respect of such goods or may be allowed subject to such restrictions and conditions.
What is the upper limit of drawback amount or rate as per the provisions of rule 9?
The drawback amount or rate determined under rule 3 shall not exceed one third of the market price of the export product.
What are the conditions to be satisfied as per sub section 3 and sub section 1 of section 74 in relation to drawback allowable on re export of duty paid goods?
What are the special rates of drawback which are applicable in respect of motor vehicles as per section 74(2)?
If the car or specified goods are re exported immediately
98% of the duty paid is refundable - Normal scenario
What are the special rates of drawback which are applicable in respect of motor vehicles as per section 74(2)? - imported by the person for his personal and private use
If the car or specified goods are re-exported after being used
What should be done by the exporter in cases where he is not able to determine the amount or rate of drawback as per rule 6?
While making an application for determination of the rate or the amount of drawback under the provisions of rule 6, will the importer be entitled to apply for any provisional drawback? if yes, what are the rules applicable for the same.
What is the rule for revocation of or direction to withdraw the rate or amount of drawback determined under rule 6?
Where the Central Government considers it necessary so to do, it may revoke the rate of drawback/ amount of drawback determined under this rule or may direct the Principal Commissioner/ Commissioner of Customs to withdraw the rate of drawback or amount of drawback determined.
What is the minimum rate of duty drawback? cases where no amount or rate of drawback is to be determined as per rule 8?
- *No amount or rate of drawback shall be determined in respect of any goods or class of goods under rule 6 or rule 7,** as the case may be, if the export value of each of such goods or class of goods in the bill of export or shipping bill is
(i) less than the value of the imported materials used in the manufacture of such goods or class of goods, or
(ii) is not more than such percentage of the value of the imported materials used in the manufacture of such goods or class of goods as the Central Government may, by notification in the Official Gazette, specify in this behalf.
What is the meaning of the term export under section 2 and what does it mean when it comes to duty drawback provisions? does it mean to say that I will be getting duty drawback only when the goods reach the export destination and how does this compare to the definition provided?
Export: with its grammatical variations and cognate expressions, means
(i) taking out of India to a place outside India or
(ii) taking out from a place in Domestic Tariff Area (DTA) to a special economic zone and
includes loading of provisions or store or equipment for use on board a vessel or aircraft proceeding to a foreign port.
Hence, export is complete when goods leave territorial waters of India. It does not matter whether goods reach the destination or even not. Duty drawback will be available once ‘export’ is complete.
Where 97% of the input by weight of the product were procured indigenously and were not excisable and only 3% were taxable and where the export duty payable comes under all industry rates under the customs and central excise duty drawback rules, 2017?
there was no duty incidence on 97% of the inputs of the export product except the duty incidence on remaining 3% of the inputs, which was insignificant. All Industry Rates fixed for particular export products are applicable to all exporters who export the same.
However, in a case where there is clear evidence, as in the present one, that the inputs of such export products have not suffered any duty, no drawback can be claimed. Same view was expressed by the Tribunal in the case of Rubfila International Ltd. v. CCus. Cochin 2005 (190) ELT 485 (Tri.-Bang.)[maintained in Rubfila International Ltd. v. Commissioner - 2008 (224) E.L.T. A133 (S.C.)].
What are the provisions regarding brand rates for duty drawback as per the duty drawback provisions? and whether a person who has applied for all industry rates under section 3 and 4 can subsequently apply for brand rates?
where the exporter has already filed a duty drawback claim under All Industry Rates (AIR) Schedule, he cannot request for fixation of Special Brand Rate of drawback.
Thus, the exporter should determine prior to export of goods, whether to claim drawback under AIR or Special Brand Rate.
What is the meaning of All Industry drawback rates and how the same are fixed as per the provisions of rule 3 ?
