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Re-Export of Imported Goods (Drawback of Customs Duties) Rules, 1995

Re-Export of Imported Goods (Drawback of Customs Duties) Rules, 1995 :

(promulgated under Notification No.36/95 Cus (NT) dated 26.05.1995, as amended)

In exercise of the powers conferred by section 74 of the Customs Act, 1962 (52 of 1962), the Central Government has notified the Re-Export of Imported Goods (Drawback of Customs Duties) Rules, 1995 which provide as follows:-

1. Definitions: In these rules, unless the context otherwise requires, –

(a) “drawback”, in relation to any goods exported out of India, means the refund of duty paid on importation of such goods in terms of section 74 of the Customs Act.

(b) “export”, with its grammatical variations and cognate expressions means taking out of India to a place outside India and includes loading of provisions or store or equipment for use on board a vessel or aircraft proceeding to a foreign port or airport.

2. Procedure for claiming drawback on goods exported by post [Rule 3]

(a) Goods exported by post

Where goods are to be exported by post under a claim for drawback ,-

(a) the outer packing shall carry the words “DRAWBACK EXPORT”.

(b) the exporter shall deliver to the competent Postal Authority a claim in the prescribed form.

(b) Date of filing of drawback claim for the purpose of section 75A: In case of export by post, the date of filing of drawback claim for the purpose of section 75A would be the date on which the aforesaid claim form is received by the proper officer of customs from the postal authorities.

(c) Deficiencies in the claim: In case the aforesaid claim form is not complete in all respects, the exporter shall be informed of the deficiencies therein within 15 days by a deficiency memo and such claim shall be deemed not to have been received.

When the exporter complies with the requirements specified in deficiency memo within 30 days, he shall be issued an acknowledgement.

The date of such acknowledgement shall be deemed to be date of filing the claim for the purpose of section 75A.

3. Statements/Declarations to be made on exports other than by post [Rule 4]: In the case of exports other than by post, the exporter shall at the time of export of the goods:-

(a) state on the shipping bill or bill of export, the description, quantity and such other particulars as are necessary for deciding whether the goods are entitled to drawback under section 74 and make a declaration on the relevant shipping bill or bill of export that-

(i) the export is being made under a claim for drawback under section 74 of the Customs Act;

(ii) that the duties of customs were paid on the goods imported;

(iii) that the goods imported were not taken into use after importation;

or

(iii) that the goods were taken in use :

However, the Principal Commissioner/Commissioner of Customs may exempt the exporter or his authorized agent from the provisions of this clause if he is satisfied that failure to comply with the said provisions is due to the reasons beyond his (exporter/authorized agent) control.

(b) furnish to the proper officer of customs, copy of the Bill of Entry or any other prescribed document against which goods were cleared on importation, import invoice, documentary evidence of payment of duty, export invoice and packing list and permission from Reserve Bank of India to re-export the goods, wherever necessary.

4. Manner and time of claiming drawback on goods exported other than by post [Rule 5]

(a) Time-limit for filing drawback claim

A claim for drawback under these rules shall be filed:-

  •  in the prescribed form
  •  within three months (extendable by another three months)

from the date on which an order permitting clearance and loading of goods for exportation under section 51 is made by proper officer of customs.

Extension of the aforesaid time-limit

AuthorityPeriod of extensionApplication feeGrant / refuse of extension
Assistant/Deputy Commissioner of Customsthree months(i) 1% of the FOB value of exports

or

(ii) `1000/- whichever is less

The concerned authority may, on an application and after making such enquiry as he thinks fit, grant
Principal Commissioner/ Commissioner of Customs or Principal Commissioner/ Commissioner of Customs and Central Excise, as the case may befurther extension of six months(i) 2% of the FOB value of exports

or

(ii) `2000/- whichever is less

extension or refuse to grant extension after recording in writing the reasons for such refusal

(b) Documents to be filed alongwith drawback claim: The claim shall be filed alongwith the following documents, namely:-

(a) Triplicate copy of the Shipping Bill bearing examination report recorded by the proper officer of the customs at the time of export.

(b) Copy of Bill of Entry or any other prescribed document against which goods were cleared on importation.

(c) Import invoice.

(d) Evidence of payment of duty paid at the time of importation of the goods.

(e) Permission from Reserve Bank of India for re-export of goods, wherever necessary.

(f) Export invoice and packing list.

(g) Copy of Bill of lading or Airway bill.

(h) Any other documents as may be specified in the deficiency memo.

(c) Date of filing of the claim for the purpose of section 75A: The date of filing of the claim for the purpose of section 75A shall be the date of affixing the Dated Receipt Stamp on the claims.

(d) Deficiencies in the claim: In case of incomplete claim/claim without the specified documents, such claim shall be returned to the claimant with the deficiency memo within 15 days of submission and shall be deemed not to have been filed.

Where exporter complies with requirements specified in deficiency memo within thirty days from the date of receipt of deficiency memo, the same will be treated as a claim filed under sub-rule (1).

Mohit Sharma
Mohit Sharma

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