F.No.609/24/2002-DBK

Government of India
Ministry of Finance
Department of Revenue
New Delhi, Dated the 24th June, 2002.

The Chairman,
Apparel Export Promotion Council,
Basic Chemicals Pharmaceuticals & Cosmetics Export Promotion Council
Chemicals & Allied Products Export Promotion Council,
Cotton Textiles Export Promotion Council etc.
Council of Leather Exports,
Electronics & Computer Software Export Promotion Council
Engineering Export Promotion Council,
Federation of Indian Exporters Organisation,
Sports Goods Export Promotion Council,
Wool & Woolen Export Promotion Council,


Sir,


Subject: Fixation of Brand Rate of Drawback under the Simplified Scheme.

As you are aware, fixation of Brand Rate of drawback under Rule 6/7 of the Customs & Central Excise Duties Drawback Rules,1995 is an essential pre-requisite for claiming drawback by the exporters from the concerned Custom Houses. As per the existing procedure, data furnished in the Brand Rate applications under the Normal Scheme are required to be verified by the jurisdictional Commissionerates of Central Excise and based on the Verification Reports of the Commissionerates, Brand Rates are subsequently fixed by this Ministry. Brand Rate applications filed under the Simplified Scheme are also subject to post-verification by the Central Excise Commissionerates.

2. In the light of the representations of various Export Promotion Councils inviting attention of the Government about the delay in fixation of Brand Rates and emphasizing the need for timely fixation of Brand Rates, the present procedure for fixation of Brand Rate has been under review of the Government for quite sometime.. Delay in getting the data verified by the Central Excise Commissionerates has been identified to contribute most for the delay in fixation of Brand Rates by this Ministry. However, ,in respect of the applications filed under the Simplified Scheme, Brand Rates are fixed within a relatively shorter span of time. The corresponding post-Verification Reports which are received from the Central Excise Commissionerates subsequent to the issue of Brand Rate letters by this Ministry also in most cases confirm the authenticity/veracity of the data furnished in such applications.

3. Therefore, in appreciation of this genuine difficulty in getting the Brand Rates fixed within a reasonable time and also as a measure of export promotion, it has been decided to dispense with the present procedure for pre-verification of the data by the Central Excise Commissionerates. Commencing from 01.7.2002 (Let Export Date) all Brand Rate applications are required to be filed only under the Simplified Scheme directly in this Ministry. The eligibility criterion for opting for the Simplified Scheme specified in this Ministry’s letters F.No.609/113/88-DBK dated 11.10.1988. F.No.609/188/92-DBK dated 1.10.1992 and F.No.609/188/92-DBk dated 7.12.1992 etc ceases to be restrictive and this revised Simplified Scheme is extended to all the applicants for fixation of Brand Rate of drawback.All Brand Rate applications in the prescribed format and alongwith requisite annexures and documents addressed to the Joint Secretary(Drawback),Department of Revenue, Ministry of Finance, 3rd Floor, Jeevan Deep Building, 10, Parliament Street, New Delhi-110 001 are required to be sent by Registered/Speed Post. The applications may also be delivered to the Receipt Clerk at the Entrance Gate of the Department of Revenue at the aforesaid address. Unless there are special reasons, Brand Rate letters will be issued within a period of fifteen days in respect of Brand Rate applications which are complete in all respects and rejection letters will also be issued in respect of incomplete applications within the same period of fifteen days.

4. While submitting the Brand Rate applications, the exporters are required to neatly page number the essential annexures/documents and to enclose them strictly in the order of DBK-I, DBK-II/IIA,DBK-III/IIIA Statements, Shipping Bill/s, Bill of Entry, Invoices regarding payment of Central Excise duty, CENVAT availment/non-availment- Certificate/Declaration; Working Sheet, Statement of Value Addition and Statement of Exports etc. Further, these should be flagged/marked distinguishably to facilitate preliminary checking of these documents by the Receipt Clerk while receiving the applications. In case of merchant exporters/manufacturer-exporters who are getting the export products manufactured from their supporting manufacturers/.vendors,as the case may be, a separate declaration ,inter alia, furnishing the details of the supporting manufacturer/vendors ,Central Excise Registration No. ,if any, availment /non-availment of the CENVAT benefit, duly authenticated by the Superintendent of Central Excise having jurisdiction over the manufacturing unit are required to be furnished.. The exporters are required to furnish original duty paying documents, viz; Bills of Entry pertaining to the imported items and Invoices evidencing payment of Central Excise Duty in respect of the indigenous inputs with reference to the claim of Brand Rate of drawback. These original duty paying documents which have been fully utilized with the Brand Rate claim will be retained in this Ministry .The duty paying documents which have been partially utilized for disposal of the Brand Rate claim, will however be returned to the exporters along with requisite endorsement. Applications for issue of amendment and corrigendum to the Brand Rate letters are required to be filed maximum within a period of 3 months. Specimen copies of the revised format of the application for fixation of Brand Rate and DBK-I,II/IIA and III/IIIA Statements are attached.

5. Brand Rate letters under the revised Simplified Scheme will be subject to post verification by the Central Excise Commissionerates/Officials of the Drawback Division of this Department. In case, after such post-verification, the data furnished in the applications are found to be incorrect, the corresponding Brand Rate letters will be revoked . Besides, the concerned exporters will be debarred from availing the benefit of the Simplified Scheme for the next one year. This is intended to deter filing of fraudulent/manipulated drawback claims.

6. The operation/efficacy of this revised Simplified Scheme will be reviewed in due course and if deemed necessary corrective measures will be incorporated. The undersigned will also hold Open House meetings on quarterly basis in his office, the precise date of which will be intimated well in advance to all the Export Promotion Councils for redressal of grievances with respect to the delay and rejection of the Brand Rate applications.

You are requested to bring the contents of this letter to the notice of all concerned for their information and necessary action.

Yours faithfully,


Sd/-
(S.S. Renjhen)
Joint Secretary to the Government of India

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