We have exported certain goods through EDI port under claim of duty drawback at all-industry rates. The Customs allowed the shipment but raised some queries. Due to some problem at our end, we had misplaced the query. When we discovered that the drawback amount has not yet been disbursed, we enquired and learnt about the query from Customs which remains un-replied from our end for the last two to three years. Does this delay make the drawback claim time-barred, as per law?
As per Rule 13(5) of the Customs and Central Excise Duties and Service Tax Drawback Rules, 1995, where the exporter has exported the goods under electronic shipping bill in Electronic Data Interchange (EDI) under the claim of drawback, the electronic shipping bill itself shall be treated as the claim for drawback and there is no need for filing separate drawback claims. As per Rule 13(2)(a) of the said Rules, "if the said claim for drawback is incomplete in any material particulars or is without the documents specified in sub-rule (2), it shall be returned to the claimant with a deficiency memo in the form prescribed by the Commissioner of Customs within 10 days and shall be deemed not to have been filed for the purpose of section 75A."
As per Rule 13(2)(b) of the said Rules, "where the exporter resubmits the claim for drawback after complying with the requirements specified in the deficiency memo, the same will be treated as a claim filed under sub-rule (1) for the purpose of section 75A". So, the said Rules 13(2)(a) and Rule 13(2)(b) refer to deficiency and compliance only for the purpose of Section 75A of the Customs Act, 1962, which relates to payment of interest. Therefore, Rule 13(5) of the said Rules will apply in your case.
We have a trading activity. We buy from another trader, who in turn has bought the goods from a manufacturer. We want to export the goods under claim of rebate of excise duty. The goods are lying at the warehouse of the trader and we want to export them directly from there. Can we or the trader claim the rebate? What is the procedure? Do we need a separate registration?
CBEC Circular no. 294/10/97-CX dated January 30, 1997 details the procedures for export of duty-paid goods from the factory of the trader. The gist of that circular is that the merchant exporter must file ARE-1 with the excise superintendent having jurisdiction over the warehouse, who after satisfying himself that the goods are in original factory-packed condition, will certify the original and duplicate of the ARE-1. He will send the triplicate to the superintendent in-charge of the factory, who will verify duty payment, certify on the triplicate of the ARE-1 and send it to the rebate sanctioning authority. This circular deals with a situation where the merchant exporter has bought the goods from a manufacturer. There is no need for a merchant exporter to have excise registration.
Business Standard invites readers' SME queries related to excise, VAT and exim policy. You can write to us at smechat@bsmail.in
