PUBLIC NOTICE NO. 36/2008 DATE 07/07/2008

Payment of Drawback in the Exporter’s Core Banking Enabled Bank Account in any Branch/Bank anywhere in the country-regarding.
Attention of the Exporters, Trade and the Custom House Agents is invited to the Circular No. 01/2008-Systems dated 24.06.2008 issued by the Directorate General of Systems from File No. IV (26)/33/2008-System on the above subject.

2. As per the existing Customs Procedure for processing of Drawback Shipping Bills and Drawback claims under the Indian Customs EDI System (ICES) an exporter is required to open a bank account only with the authorized Bank Branch at the Port of Export. This has been done to enable direct credit of the drawback amount to their accounts, obviating the need for issue of cheques. The exporter has to indicate the bank account number in the prescribed Declaration Form. Shipments for exports under claim for Drawback are not accepted in case the account number of the exporter in the designated authorized Bank Branch is not indicated in the Declaration Form.

3. With the introduction of CBS (Core Bank Solution) by the Public Sector and other banks and its expansion to a large number of branches/cities and other technological advancements in the banking sector, there have been demands from the exporters and various trade associations, for crediting of Drawback amount in the exporter’s core banking enabled bank account, in any branch/bank anywhere in the country. It has now been decided to credit the Drawback amount in the exporter’s account in any core banking branch of the authorized bank anywhere in the country. In respect of exporters whose accounts are not in the authorized banks at the EDI location but in some other bank, the facility of RTGS (Real Time Gross Settlement) and NEFT (National Electronic Fund Transfer) would be used to transfer credit of drawback amount in the exporter’s account provided the concerned branch of the other bank is RTGS and NEFT enabled.

4. The following procedures shall be followed in this regard:

(i) an exporter desirous of exporting goods under claim of Drawback will be required to declare to the designated Customs Official:

a) in case he wishes to have his Drawback credited in any Core Banking Branch of the Bank authorized for Drawback payment at that EDI location or any other Bank other than the Authorized Bank (in any Core Banking enabled Branch which is also RTGS and NEFT enabled), the exporter will be required to declare to the Customs Authorities the Indian Financial Service (IFS) Code of the Bank Branch where he operates his Bank Account, in addition to the Core Banking enabled account number, Bank name and address in the prescribed format (As per the annexure to this Public Notice). The IFS Code No. can be obtained by the exporter from his Bank Branch.

b) the exporter shall get the Bank Account Declaration Form certified by the Bank Branch, where he operates his Bank Account, and the certified copy of the Form shall be produced by him before the designated Customs Official for registration of the Bank Account. A copy of the certified Declaration Form shall also be submitted by the exporter to the authorized Bank Branch at the EDI location through which the Drawback amount will be transferred.

c) after registration of exporter’s Bank Account number and IFS Code with the designated Customs Official, a check list will be given and the exporters or his authorized representative shall after verifying the correctness of Account number return the signed copy of the check list to the designated Customs Official.

d) whenever there is a change in the exporter’s Bank Account number the same procedure is required to be followed by the exporter for fresh registration of new Bank Account number.

(ii) The practice of sanction and payment of drawback shall continue to be in the same manner as it exists now. The drawback claim, after being processed and sanctioned, will continue to be authorized for payment only through the Customs authorized Bank Branch at the Port of Export. The Customs authorized Bank Branch will take necessary action to credit the Drawback amount in the exporter’s Core Banking enabled Account of the same Bank. In respect of accounts in any Bank Branch of other Banks (Core Banking & RTGS/NEFT enabled), the Customs authorized Bank Branch will transfer the drawback amount through the RTGS/NEFT facility. These transactions, including the charges thereof, will be governed by guidelines issued by the RBI in this regard from time to time. Exporters can approach their Bank for issuance of statement of such credits made in their Accounts.

5. With the introduction of this procedure it will no longer be mandatory for any new exporter to open a bank account only with the designated authorized bank branch at the port of export.

6. This Public Notice would be effective from the 15th July 2008.

F. No. S/6-B-Misc-220/2008/CFS

(R. K. MAHAJAN)
Commissioner of Customs (General),
Mumbai

Copy to:
1. All Exporters/Custom House Agents
2. All concerned departments
3. Notice Board

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