CHAPTER 11DRAWBACK ON RE-EXPORT OF IIVIPORTED GOODS
Re-erport of imported goods -
Drawback. -
(1) As per Section 74 of theCustoms Ac., \962 read,Re-export of
Imported Goods (Drawback of Customs Duties) Rules, 1995, the
drawback of the Customspaid on the imported goods is admissible on
their re-export. Drawback under Section 74(1) of the
Act is confined to 98% of the duty paid provided the goods in
question are identified to theaction of the Assistant Cdmmissioner
of Customs, to be imported goods and such goods are re-rted within
two years from the date.of payment of duty on their importation.
However, the Central
of Excise & Customs can extend this period of two years on
sufficient cause being shown for the.In this regard the said
Section 74(1) reads as under :-
"(1)Whenanygoodscapable ofbeing easilyidentified which have been
imported intolndiaandupon*1',ish r[any duty has been paid on
importatiorl -
(i) are entered for export and the proper officer makes an order
permitting clearance and loading ofthe goods for exportation under
Section 51; or
(ii) are to be exported as baggage and the owner of such
baggage, for the purpose of clearing it, makesa declaration of its
contents to the proper officer under section 7 (which declaration
shall bedeemed to be an entry for export for the purposes of this
section) and such officer makes an orderpennitting clearance of the
goods for exportatio:r; or
(iii) are entered for export by post under Section 82 and the
proper officer makes an order permitfingclearairce of the goods for
exportation,
ninety+ight per cent of such duty shall, except as othennrise
hereinafter provided, be repaid as drawback, if -](a) the goods are
identified to the satisfaction of the z[Assistant Commissioner of
Customs or Deputy
Commissioner of Customsl as the goods which were imported;
and
(b) the goods are entered for export within two'years from the
date of payment of duty on theimportation thereof :
Provided that in any particular case the aforesaid period of two
years may, on sufficient cause being shonm,be extended by the Board
by such further period as it inay deem fit."
(2) flhere the imported goods after their importation and before
their exportation have been used,Central Government vide
Notification No. 19-Cus., dated G2-7965 has notified at graded
basis
percentage of Drawback as given below :-
Substituted (w.e.f.27-12-L985)bys.6of theCustoms(Ammdment)Act,
1985(80of 1985).Substituted by s. 100 of the Finance Act, 1999 (27
of 7999).
(181)
Length of period between the date of clearance for home
consumption andthe date when the goods are placed underCustoms
conhol for export
Q)Not more than three months
than three months but not more than six monthsMore than six
months but not more than nine monthsMore than nine months but not
more than twelve months
5. More than twelve months but not more than fifteen months
65%
6. More than fifteen months but not more than eighteen months
60%
7. More than eighteen months NIL
Re-export of Imported Goods (Drawback of Customs Duties) Rules,
1995 - Scope.l -
(a) Theaforesaid rules have been issued specifying the procedure
for filing a claim in respect of goods exportedunder a claim for
drawback under Section 74. It has become necessary to prescribe a
procedure for filing ofclaim in view of Section 75A of the Customs
Act which now requires the Government to pay interest atspecified
rates in case drawback is not paid to the exporter within [one
month]z from the filing of his claim.
Drawback on goods re-exported by post. -
Rule 3 of the Re-export of Imported.Goods (DrawbackCustoms
Duties) Rules, L995 provides for procedure to be followed in case
of goods exported by post urclaim for drawback under Section 74.
Tlne claim in the prescribed form is required to be furnished
byexporter to the postal authorities along with the parcel. The
date of receipt of the claims so filed byproper officer of the
Customs from the postal authorities, shall be deemed to be the date
of filing of a claiby the exporter for the purpose of Section 75A.
An intimation of receipt of claim from postal authoritiesrequired
to be given to the exporter. Claims which are incomplete should be
returned to the exporter withdeficiency memo within fifteen days
and such claims when again filed by the exporter after complying
rthe requirements are to be treated as fresh claims. Such claims if
found in order should be acknowledand period of one month for
payment of drawback shall commence from the date
ofacknowledgement.
*.Drawback,ffioods re-exported other than by Post. -
(1.) Clause (a) of Rule 4 of the Re-exportImported Goods
(Drawback of Customs Duty) Rules, 1995 provides that in the case of
goods re-exporlother than by post, the exporter shall at the time
of export of goods state on the shipping bill or billexport, the
descriptiory quantity and such other particulars as are necessary
for deciding whether theare entitled to drawback under Section 74
of. the Customs Act, 1962. The exporter shall also makedeclaration
on the relevant shipping bill or bill of erport that, -
(i) the export is being made under a claim for drawback under
Section 74 of the Customs AcU(ii) that the duties of customs were
paid on the goods imported;(iii) that the goods imported were not
taken into use after importatiory
OR(iii) that the goods were taken in usel(2) As per the Proviso
to Clause (a) of the said Rule 4 where the expolter or his
authorised agent
to comply with the provisions of this clause for reasons beyond
his control, he can make a representation toCommisiioner of
iustoms, who can, on being satisfied, exempt such exporter from the
provisions of Iclause.
(3) As per Clause @) of the said Rule 4 the exporter wherever
necessary also fumish to theOfficer of Customs, a copy of the bill
of entry or other prescribed documents agairst which goods wereon
importatiory import invoice, documentary evidence of payment of
duiy, export invoice, packing listpermission from RBI to export the
goods.
(4) Rule 5 of the Re-export of Imported Goods (Drawback of
Customs D"ty) Rules, 1995 providesthe time and manner of claiming
drawback on re-export of goods. On the goods re-exported otherpost,
claim is required to be filed in the prescribed form within three
months from the date of 'LetOrder' under Section 51 by the proper
officer of Customs. The claim should be accompanied by the
docspecified in sub-rule (2) of Rule 5. Procedure regarding
affixing Dated Receipt Stamp and iacknowledgement or deficiency
memo as in the case of claims under Section 75 has been prescribed
forunder Section 74 of the Customs Act in these rules also.31 Based
on M.F. (D.R.) Circular No. 57,/95-Cus ., d.ated 30-*L995.2 Finance
Act,2003 reduced time limit of "two months" to "one month".3 Based
on M.F. (D.R.) Circular No.57l95-Cus., dated 3GF1995.