The simplified scheme of brand rate fixation is available to goods exported under a particular shipment. It implies that the application for fixation of brand rate under the simplified scheme can be filed only in relation to goods exported under one or more shipping bills relating to a particular shipment.

Period of Time

The scheme, however, provides that the exporter may make application for the same goods for a period of time, if it is certified that the consumption pattern of production inputs would be the same for successive shipments and the exporters have sufficient stock of the related inputs at the time of filing an application, for the manufacture of related goods.

Extension of Brand Rates

The brand rate already fixed for any product can be got extended for a specified period of time.

Criteria

The extension of the rate of drawback of any standard product, i.e., a product where there is no change in manufacturing formula, will be granted subject to the satisfaction of the Customs/Central Excise officers on the following points.

Manufacturing Formula.

The quantum and the ratio of the inputs of a unit quantity of a finished product should not have changed, i.e., no change in the manufacturing formula. The content of drawbackable inputs should remain unaltered for the specified current period. Moreover, it should be same as submitted for the previous period for which brand rate application has been filed.

Evidence of Duty Payment.

Under no circumstances, the duty of Central Excise paid on inputs should have been paid under protest. The assessment should not have been provisional. No refund claim has been preferred or would be preferred on any ground to the Excise authority; and that there has been no dispute on the assessment of inputs. Moreover, the indigenous inputs for which duty incidence has been claimed/allowed earlier on the basis of evidence of verification/duty paying documents have been continued to be procured on payment of duty and have not been exempted from payment of duties under any of the provision of the Central Excise Act/Rules.

Evidence of payment of import duty can be produced directly to the Drawback Directorate, Ministry of Finance, New Delhi.

All Industry Rates. In respect of all inputs the manufacturer is claiming application Of current All Industry Rates as per the material content provided that quantum of inputs continued to be the same as in the previous period of validity of the brand rate letter.

Imported materials. The manufacturer/exporter depends upon one or two imported materials only and there has been no change in the quantum or ratio of the utilisation of the imported materials either by themselves or in admixture with indigenous materials in the manufacture of a finished product, i.e., the ratio and quantum of materials of imported nature to indigenous nature had been altered, modified or changed during the current year.

Period of Extension

The extension/fixation of the rates can be made for a period of one year corresponding to the period of validity of the all industry rates for the same product.

Application and Document

The application for extension of brand rate will be filed in a simple letter on the applicant"s letterhead. It should be accompanied with Drawback Statements II and III (Annexure 48 to 51) alongwith Photostat copy or duty paying documents.

Time Limit

The application for extension should be preferred within 60 days from the of expiry of the previous brand rate latter. ln order to cover up marginal period for which extension is to be made, in case, where the drawback rates would normally be fixed for one particular drawback year and rate fixation is delayed by the Directorate of Drawback, beyond this period, and there are subsequent exports to be effected, the exporter can intimate the Directorate of covering the subsequent exports in the brand rate letters under issue by the Directorate. In all other cases, the exporters should make a fresh application for fixation of drawback rate within 60 days of first exports as per stipulation under the rules.

Additional Declarations

The applications for extension of brand rate are to be accompanied with Drawback Statement II and III, as stated above. Such Statements must carry the following additional declarations.

1. At the end of DBK-I Statement, the following additional declaration should be furnished:

"Certified that the quantum and the ratio of the inputs to the finished products remain unchanged and that there is no change in the manufacturing formulae".

2. At the end of DBK-II Statement. the following additional declarations should be furnished:

(a) that the quantum and ratio of use of inputs of imported materials has remained unchanged and is the same as in the earlier statement DBK-II dated furnished by us and that there is no change in the utilisation of the imported materials by themselves or vis-a-vis indigenous materials;

(b) in respect of imported materials, the imported goods have not been obtained or procured without payment of any duty under any of the provisions;

(c) that the duties of Customs have been paid without any protest; that the assessment is not provisional and that no refund claim has been preferred in respect of the new materials for which duties of Customs have been claimed in DBK-II Statement.

3. At the end of DBK-III Statement, (Annexure 43) the following additional declarations may be furnished:

(a) that the quantum and ratio of input in indigenous materials has remained un- changed as declared in our earlier Statement DBK-III, dated…….. and that there is no change in the utilisation of the indigenous materials by themselves or vis-a-vis imported materials;

(b) that in respect of indigenous materials, the indigenous goods have not been obtained or procured without payment of any central excise duty under any of the provisions

(c) that the duties of central excise have been paid without any protest, that the assessment is not provisional and that no refund claim has been preferred or would be preferred in respect of raw materials for which duties of Central Excise have been claimed in DBK-III Statement.