Procedure & Documents

The procedure for claiming duty drawback against deemed exports is detailed here.

Authority

Where the AI rate of drawback exists, apply to the Regional Licensing Authority concerned, except, for supplies to EOUs/EPZ units. If the brand rate of drawback etc. IS to be got fixed, apply in the same form (in duplicate) also to the RLA concerned. The RLA shall forward a copy to the DGFT (Drawback Cell), New Delhi giving its file number for future correspondence.

Time Limit

Apply against payment received, for supplies at (a), (b), (c) and (h) within a period of six months, on monthly basis/quarterly basis/half yearly basis, from the end of monthly/quarterly/half yearly period as per the option of the applicant. Such claims may also be filed even where part payment has been received. For supplies at (d), (e), (f) and (g) application shall be filed on the basis of proof of having received the supplies.

The application for fixation of brand rate/special brand rate shall be filed within a period of 6 months from the date of last supply covered under a single contract relating to an individual order or project. The application for claim of drawback under brand rate shall be filed within a period of six months from the date of fixation of brand rate or six months from the date of payment whichever is later. The provision of late cut @ 10% of the entitlement shall be applicable in case of late filing.

However, in respect of supplies effected prior to 1.4.99, the supplier shall have the option to file claim either on the basis of the payment certificate received or on the basis of supplies effected. Such claims shall be filed within a period of six months from the end of monthly/quarterly/half yearly period as per the option of the applicant which shall be counted from the date of receipt of the payment certificate or from the date of receipt of the supplies by the Project Authority as per the applicant"s option.

Application

Apply in form at Annexure 37 both for duty drawback whether AI rate or for fixation of brand rate, and refund of terminal excise duty. Read the "General Instructions" as at Appendix 1 of the Handbook of Procedures (Vol. I) before filling in the application form. The application should be certified by a Chartered Accountant/Cost & Works Accountant.

Documents

A. A1 rate of Drawback

(i) Supply invoices certified by Project authority and self-certified.

(ii) In case of 100% EOUs/EPZ/STP/EHTP units, a complete AR-3A form/ supply invoice certified by the bond officer.

(iii) Paymentcertificate issued by the Project Authority in form 1A (Annexure 35). For supply to EOU/EPZ units the certificate is to be given regarding receipt of payment through normal banking channel. However, for claim by sub-contractors, payment certificate in form 1B or 1C (Annexure 36).

(iv) Photocopy of complete ARO/Back-to-BACK LC.

(v) Photocopy of the purchase order/ LOI/contract with the buyer (self-certified).

B. Where Brand Rate of Drawback is to be got Fixed. Additional Documents along with those at "A" above.

(i) DBK I (Annexure 47) duly certified by a Chartered Engineer.

(ii) DBK II, IIA, III & III-A (Annexures 48 to 51), duly certified by a Chartered Accountant along with the non-availment of Modvat Certificate.

(iii) Photocopies of Bill of Entries alongwith relevant Import Invoices.

Note: In case of public sector undertaking, the DBK statements may be signed/certified by the Head of Production and Head of Finance Department. ;

Provisional Payment

Pending determination of the brand rate of Drawback, provisional payment may be made at the rate of:

(i) 90% of the drawback claim against supplies made by public sector undertaking and

(ii) 75% of drawback claim by other suppliers i.e. private companies