Under the duty drawback scheme the export products get relief in respect of Customs and Excise Duties paid on raw materials and components used in their production. There are two types of rates of drawback.
(i) All Industry Rates are published in the form of notification by Government every year
and are normally valid for one year.
(ii) Brand rates are fixed on the individual request of an exporter / manufacturer where the Government has not determined all.
Industry Rates in respect of any export product eligible for drawback or where the rate is not applicable because the manufacturer of the product has availed of certain duty free facilities but where sufficient duty paid inputs are also used. Fixation of brand rates is done under simplified procedure or normal procedures as may be applicable.
The All Industry Rate is fixed on the basis of averaging principle. As such the All Industry Rate may not compensate different exporters fully for the Customs and Excise duties actually paid by them. Thus, Drawback Rules provide that where the All Industry Rate for any class of goods is less than 4/5th of the duties actually paid in their manufacture, an application for fixation of Special Brand Rates may be made.
Information on duty drawback rates is available from the concerned Export Promotion Councilor from the Director (Drawback) - Ministry of Finance.
For claiming the drawback on export of goods, the exporter is not required to file a separate application for granting the amount of drawback, as the drawback shipping bill itself treated as a claim and it is finalized after ensuring that the goods have been presented for examination by Customs and cleared for being put on board a vessel / air craft and ensuring that the necessary formalities to enable processing of claims are complied with. The payment of drawback claim is made directly by the Customs House / Central Excise Commissioner having jurisdiction over the port / airport / land customs stations through which the export is made.