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.