'Drawback rates cannot be altered on the basis of data from a single exporter'

All Industry Rate (AIR) of drawback for our item has been cut drastically and the value cap is also very low. How can we get it revised and what can we do to recoup our actual duty incidence?
AIR is based on the concept of averages, wherein the drawback rate itself as well as its customs and excise portions are based on weighted averages of consumption of imported/indigenous inputs of a representative cross-section of exporters and the average incidence for duties suffered on such inputs. The drawback rates have been determined on the basis of certain broad average parameters including, inter alia, prevailing prices of inputs, standard input output norms, share of imports in input consumption, the applied rates of central excise and customs duties, the factoring of incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods, factoring incidence of duty on HSD/Furnace Oil, value of export goods, etc.

So, the rates cannot be altered on the basis of data from a single exporter. So, you may approach your Export Promotion Council (EPC) with details of your case. If your EPC collates similar data from other manufacturers of your product also and represents the matter to Joint Secretary (DBK) in the Department of Revenue, the representation may be considered favourably. Till the rates are revised, you may claim the difference between actual duty incidence and the AIR through fixation of Special Brand Rate (SBR) under Rule 7 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995.

For SBR, you must declare your intention to claim the same in the drawback shipping bill. SBR is admissible if AIR rebates less than 80 per cent of your actual duty incidence. You can get disbursement of drawback at AIR immediately and balance after fixation of the SBR by your excise authorities.

As per RBI Master Circular 14/2013-14 dated 1.7.203, Para C20 (i) deals with "self-write-off" of export bills due within the prescribed period of realization, and Para C22 deals with "self-write-off" of export bills outstanding for more than one year. Are Para C20 and C22 independent provisions? Can an exporter avail "self-write-off" under both para C20 and C22 cumulatively?

In my opinion, the self-write-off limit of 10 per cent for status holders and 5 per cent for others mentioned in Para C22 is the total limit available. However, RBI must re-write the said Para C20 and C22 for greater clarity.

We are exporting the goods to the United States. Can we get the duty drawback benefits if exports are paid for in rupees?
The second proviso to Section 75 of the Customs Act, 1962 prescribes realisation of sale proceeds only, and does not specify any currency in which payment must be received. However, Para 2.40 of the FTP mandates payment for exports in freely convertible currency and treats payments realised in rupees through a convertible Vostro account of a non-resident bank, as freely convertible currency.

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