The Customs, Central Excise Duties and Service Tax Drawback
(Amendment) Rules, 2006.
Notification No. 37/1995 - Customs (N.T.) dated 26/05/1995;
amended by
Notification No. 63/95-Customs (N.T.) dated 20-10-95;
Notification No. 72/1995 - Cus. (N.T.) dated 06/12/1995;
Notification No. 53/1995 - Cus. & C.E. dated 15/09/1995;
Notification No. 48/1996 - Cus. & C.E. dated 22/10/1996;
Notification No. 54/1996- Cus. & C.E. dated 31/10/1996;
Notification No. 32/1998 - Customs (N.T.) dated 02//06/1998;
Notification No. 29/1999 - Customs (N.T.) dated 11//05/1999;
Notification No. 15/1999 - Cus. & C.E. (N.T.) dated 09//02/1999;
Notification No. 20/2003 - Customs (N.T.) dated 03/03/2003;
Notification No. 19/2003 - Customs (N.T.) dated 03/03/2003
Notification No. 14/2004 - Customs (N.T.) dated 06/02/2004;
Notification No. 10/2006 - Customs (N.T.) dated 15/02/2006;
Notification No. 80/2006- Customs (N.T.) dated 13/07/2006;
Notification No. 64/2008- Customs (N.T.) dated 29/05/2008.
1. Short title and commencement -
(1) These rules may be called the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995.
(2) Save as expressly provided otherwise, these rules shall come into force on the date of their publication in the Official
Gazette.
(Short title and commencement has been substituted vide Notification No. 80/2006 - Customs (N.T.) dated 13/07/2006)
(Short title and commencement has been substituted vide Notification No. 10/2006 - Customs (N.T.) dated 15/02/2006)
(Short title and commencement has been substituted vide Notification No. 14/2004 - Customs (N.T.) dated 06/02/2004)
(Short title and commencement has been substituted vide Notification No .20/2003 - Customs (N.T.) dated 03/03/2003)
(Short title and commencement has been substituted vide Notification No. 19/2003 - Customs (N.T.) dated 03/03/2003)
2. Definitions. -
In these rules, unless the context otherwise requires, -
(a) "drawback" in relation to any goods manufactured in India and exported, means the rebate of duty or tax, as the case may
be, chargeable on any imported materials or excisable materials used or taxable services used as input services in the
manufacture of such goods;
(b) "excisable material" means any material produced or manufactured in India subject to a duty of excise under the Central
Excises and Salt Act, 1944 (1 of 1944);
(c) "export", with its grammatical variations and cognate expressions, means taking out of India to a place outside India or
taking out from a place in Domestic Tariff Area (DTA) to a special economic zone and includes loading of provisions or store
or equipment for use on board a vessel or aircraft proceeding to a foreign port;
(In rule 2,clause(c),has been substituted vide Notification No. 19/2003 - Customs (N.T.) dated 03/03/2003)
(d) "imported material" means any material imported into India and on which duty is chargeable under the Customs Act, 1962
(52 of 1962);
(da) "input service" shall have the same meaning as is assigned to it in the CENVAT Credit Rules, 2004.
(e) "manufacture" includes processing of or any other operation carried out on goods, and the term manufacturer shall be
construed accordingly.
3. Drawback. -
(1) Subject to the provisions of -
(a) the Customs Act, 1962 (52 of 1962) and the rules made thereunder,
(b) the Central Excises and Salt Act, 1944 (1 of 1944) and the rules made thereunder,
(bb) the Finance Act, 1994( 32 of 1994), and the rules made thereunder; and
(c) these rules,a drawback may be allowed on the export of goods at such amount, or at such rates, as may be determined by
the Central Government:
Provided that where any goods are produced or manufactured from imported materials or excisable materials or by using any
taxable services as input services, on some of which only the duty or tax chargeable thereon has been paid and not on the rest,
or only a part of the duty or tax chargeable has been paid; or the duty or tax paid has been rebated or refunded in whole or in
part or given as credit, under any of the provisions of the Customs Act, 1962 (52 of 1962) and the rules made thereunder, or of
the Central Excise Act, 1944 ( 1 of 1944) and the rules made thereunder, or of the Finance Act, 1994 ( 32 of 1994) and the
rules made thereunder, the drawback admissible on the said goods shall be reduced taking into account the lesser duty or tax
paid or the rebate, refund or credit obtained:
Provided further that no drawback shall be allowed -
(i) if the said goods, except tea chests used as packing material for export of blended tea, have been taken into use after
manufacture;
(ii) if the said goods are produced or manufactured, using imported materials or excisable materials or taxable services in
respect of which duties or taxes have not been paid; or;
(iii) on jute batching oil used in the manufacture of export goods, namely, jute (including Bimlipatam jute or mesta fibre), yarn,
twist, twine, thread, cords and ropes;
(iv) if the said goods, being packing materials have been used in or in relation to the export of -
(1) jute yarn (including Bimlipatam jute or mesta fibre), twist, twine, thread and ropes in which jute yarn predominates in weight;
(2) jute fabrics (including Bimlipatam jute or mesta fibre), in which jute predominates in weight;
(3) jute manufactures not elsewhere specified (including Bimlipatam jute or mesta fibre) in which jute predominates in weight.
(v) on any of the goods falling within Chapter 72 or heading 1006 or 2523 of the First Schedule to the Customs Tariff Act, 1975
(51 of 1975).
[Inserted vide Notification No. 64/2008-Customs (N.T.), dated 29-05-2008]
(2) In determining the amount or rate of drawback under this rule, the Central Government shall have regard to, -
(a) the average quantity or value of each class or description of the materials from which a particular class of goods is
ordinarily produced or manufactured in India;
(b) the average quantity or value of the imported materials or excisable materials used for production or manufacture in India of
a particular class of goods;
(c) the average amount of duties paid on imported materials or excisable materials used in the manufacture of semis,
components and intermediate products which are used in the manufacture of goods;
(d) the average amount of duties paid on materials wasted in the process of manufacture and catalytic agents:
Provided that if any such waste or catalytic agent is re-used in any process of manufacture or is sold, the average amount of
duties on the waste or catalytic agent re-used or sold shall also be deducted;
(e) the average amount of duties paid on imported materials or excisable materials used for containing or, packing the export
goods;
(ea) the average amount of tax paid on taxable services which are used as input services for the manufacturing or processing
or for containing or packing the export goods.
(f) any other information which the Central Government may consider relevant or useful for the purpose.
4. Revision of rates. -
The Central Government may revise amount or rates determined under rule 3.
5. Determination of date from which the amount or rate of drawback is to come into force and the effective date for
application of amount or rate of drawback. -
(1) The Central Government may specify the period upto which any amount or rate of drawback determined under rule 3 or
revised under rule 4, as the case may be, shall be in force.
(2) Where the amount or rate of drawback is allowed with retrospective effect, such amount or rate shall be allowed from such
date as may be specified by the Central Government by notification in the Official Gazette which shall not be earlier than the
date of changes in the rates of duty on inputs or tax on input services used in the export goods.
(3) The provisions of section 16, or sub-section (2) of section 83, of the Customs Act, 1962 (52 of 1962) shall determine the
amount or rate of drawback applicable to any goods exported under these rules.
6. Cases where amount or rate of drawback has not been determined. -
(1)(a) Where no amount or rate of drawback has been determined in respect of any goods, any manufacturer or exporter of
such goods may, within sixty days from the date relevant for the applicability of the amount or rate of drawback in terms of sub-
rule (3) of rule (5), apply in writing to the Commissioner of Central Excise or the Commissioner of Customs and Central Excise,
having jurisdiction over the manufacturing unit, of the manufacturer or, of the supporting manufacturer, as the case may be, for
determination of the amount or rate of drawback thereof stating all the relevant facts including the proportion in which the
materials or components or inputs services are used in the production or manufacture of goods and the duties paid on such
materials or components or the tax paid on input services:
Provided that such Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be,
may, if he is satisfied that the manufacturer or exporter was prevented by sufficient cause from filing the application within the
aforesaid time allow such manufacturer or exporter to file such application within a further a period of thirty day;
(In sub-rule 1 clause (a), has been substituted vide Notification No. 20/2003 - customs (N.T.) dated 03/03/2003)
(b) On receipt of an application under clause (a) the Commissioner of Central Excise or the Commissioner of Customs and
Central Excise, as the case may be shall, after making or causing to be made such inquiry as it deems fit, determine the
amount or rate of drawback in respect of such goods.
(In sub-rule 1 clause (b) has been substituted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
(2)(a) Where a manufacturer or exporter desires that he may be granted drawback provisionally, he may, while making an
application under clause (a) of sub-rule (1) apply in writing to the Commissioner of Central Excise or the Commissioner of
Customs and Central Excise, as the case may be that a provisional amount be granted to him towards drawback on the export
of such goods pending determination of the amount or rate of drawback under clause (b) of that sub-rule.
(In sub-rule 2 clause (a) has been substituted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
(b) The Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, may, after
considering the application, allow provisionally payment of an amount not exceeding the amount claimed by the manufacturer
or exporter in respect of such export:
Provided that the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be,
may, for the purpose of allowing provisional payment of drawback in respect of such export, require the manufacturer or
exporter to enter into a general bond for such amount, and subject to such conditions, as he may direct; or to enter into a bond
for an amount not exceeding the full amount claimed by such manufacturer or exporter as drawback in respect of a particular
consignment and binding himself,-
(i) to refund the amount so allowed provisionally, if for any reason, it is found the duty drawback was not admissible; or
(ii) to refund the excess, if any, paid to such manufacturer or exporter provisionally if it is found that a lower amount was
payable as duty drawback:
Provided further that when the amount or rate of drawback payable on such goods is finally determined, the amount
provisionally paid to such manufacturer or exporter shall be adjusted against the drawback finally payable and if the amount so
adjusted is in excess or falls short of the drawback finally payable, such manufacturer or exporter shall repay to the
Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, the excess or be
entitled to the deficiency, as the case may be;
(In sub-rule 2 clause (b) has been substituted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
(c) The bond referred to in clause (b) may be with such surety or security as the Commissioner of Central Excise or the
Commissioner of Customs and Central Excise, as the case may be may direct.
(In sub-rule 2 in clause (c) bold words has been substituted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
(3) Where the Central Government considers it necessary so to do, it may-
(a) revoke the rate of drawback or amount of drawback, determined under clause (b) of sub-rule (1) by the Commissioner of
Central Excise or the Commissioner of Customs and Central Excise, as the case may be; or
(b) direct the Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, to
withdraw the rate of drawback or amount of drawback determined.
(Sub-rule 3 has been substituted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
(4) No amount or rate of drawback shall be determined in respect of any of the goods falling within Chapter 72 or heading
1006 or 2523 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
(Sub-rule (4) has been inserted vide Notification No.64/2008 - customs (N.T.) dated 29-05-2008)
7. Cases where amount or rate of drawback determined is low. -
(1) Where, in respect of any goods, the manufacturer or exporter finds that the amount or rate of drawback determined under
rule 3 or, as the case may be, revised under rule 4, for the class of goods is less than four-fifth of the duties or taxes paid on the
materials or components or input services used in the production or manufacture of the said goods, he may within sixty days
from the date relevant for the applicability of the amount or rate of drawback in terms of sub-rule (3) of rule (5), make an
application in writing to the Commissioner of Central Excise or the Commissioner of Customs and Central Excise having
jurisdiction over the manufacturing unit, of the manufacturer or, of the supporting manufacturer, as the case may be, for
determination of the amount or rate of drawback thereof stating all relevant facts including the proportion in which the materials
or components or input services are used in the production or manufacture of goods and the duties or taxes paid on such
materials or components or input services :
Provided that the Commissioner of Central Excise or the Commissioner of Customs and Central Excise may, if he is satisfied
that the manufacturer or exporter was prevented by sufficient cause from making the application within the aforesaid time,
allow such manufacturer or exporter to make such application within a further period of thirty days;
(In rule 7 sub-rule (1),has been substituted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
(2) On receipt of the application referred to in sub-rule (1), the Commissioner of Central Excise or the Commissioner of
Customs and Central Excise, as the case may be may, after making or causing to be made such inquiry as it deems fit, allow
payment of drawback to such exporter at such amount or at such rate as may be determined to be appropriate, if the amount or
rate of drawback determined under rule 3 or, as the case may be, revised under rule 4, is in fact less than four-fifth of such
amount or rate determined under this sub-rule.
(In rule 7 sub-rule (2) has been substituted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
(3) Where manufacturer or exporter desires that he may be granted drawback provisionally, he may, while making an
application under sub-rule (1), apply to the Commissioner of Central Excise or the Commissioner of Customs and Central
Excise, as the case may be, in writing in this behalf in the manner as has been provided in clause (a) of sub-rule (2) of rule 6 for
the applications made under that rule and the grant of provisional drawback shall be considered in the manner and subject to
the conditions specified in clauses (b) and (c) of sub-rule (2), and sub-rule (3) of rule 6, subject to the condition that bond
required to be executed by the claimant shall only be for the difference between amount or rate of drawback determined under
rule 3 or, as the case may be, revised under rule 4 by the Central Government and the provisional drawback authorised by the
Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be, under this rule.
(4) Where the Central Government considers it necessary so to do, it may- (a) revoke the rate of drawback or amount of
drawback, determined under sub-rule (2) by the Commissioner of Central Excise or the Commissioner of Customs and Central
Excise, as the case may be, or (b) direct the Commissioner of Central Excise or the Commissioner of Customs and Central
Excise, as the case may be, to withdraw the rate of drawback or amount of drawback determined.
(In rule 7 sub-rule (3) has been substituted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
(5) No amount or rate of drawback shall be determined in respect of any of the goods falling within Chapter 72 or heading
1006 or 2523 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
(Sub-rule (5) has been inserted vide Notification No.64/2008 - customs (N.T.) dated 29-05-2008)
8. Cases where no amount or rate of drawback is to be determined. -
(1) No amount or rate of drawback shall be determined in respect of any goods under rule 3, rule 6 or, as the case may be, rule
7, the amount or rate of drawback of which would be less than one per cent of the F.O.B. value thereof, except where the
amount of drawback per shipment exceeds five hundred rupees.
Provided that this sub-rule shall not apply in the case of -
(a) drawback on exports made in discharge of export obligation against an Advance Licence issued under the Export and
Import Policy notified by the Central Government under section 5 of the Foreign Trade (Development and Regulation) Act,
1992 (22 of 1992), or
(b) export made by post.
(2) No amount or rate of drawback shall be determined in respect of any goods or class of goods under rule 6 or rule 7, as the
case may be, if the export value of each of such goods or class of goods in the bill of export or shipping bill is less than the
value of the imported materials used in the manufacture of such goods or class of goods, or is not more than such percentage
of the value of the imported materials used in the manufacture of such goods or class of goods as the Central Government
may, by notification in the Official Gazette, specify in this behalf.
8A. Upper Limit of Drawback money or rate. -
The drawback amount or rate determined under rule 3 shall not exceed one third of the market price of the export product.
(Rule 8A has been inserted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
9. Power to require submission of information and documents. -
For the purpose of -
(a) determining the class or description of materials or components or input services used in the production or manufacture of
goods or for determining the amount of duty or tax paid on such materials or components or input services, or
(b) verifying the correctness or otherwise of any information furnished by any manufacturer or exporter or other persons in
connection with the determination of the amount or rate of drawback, or
(c) verifying the correctness or otherwise of any claim for drawback, or
(d) obtaining any other information considered by Commissioner of Central Excise or the Commissioner of Customs
and Central Excise, as the case may be, to be relevant or useful , any officer of the Central Government specially
authorized in this behalf by an Assistant Commissioner of Customs or Deputy Commissioner of Customs or of Central Excise,
may require any manufacturer or exporter of goods or any other person likely to be in possession of the same to furnish such
information and to produce such books of account and other documents as are considered necessary by such officer.
(In rule 9 in clause (d) bold words has been substituted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
10. Access to manufactory. -
Whenever an officer of the Central Government specially authorized in this behalf by an Assistant Commissioner of Customs or
Deputy Commissioner of Customs or of Assistant Commissioner of Central Excise or Deputy Commissioner of Central
Excise, considers it necessary, the manufacturer shall give access at all reasonable times to the officer so authorized to every
part of the premises in which the goods are manufactured, so as to enable the said officer to verify by inspection the process
of, and the materials or components used for the manufacture of such goods, or otherwise the entitlement of the goods for
drawback or for a particular amount or rate of drawback under these rules.
11. Procedure for claiming drawback on goods exported by post. -
(1) Where goods are to be exported by post under a claim for drawback under these rules, -
(a) the outer packing carrying the address of the consignee shall also carry in bold letters the words "DRAWBACK EXPORT";
(b) the exporter shall deliver to the competent Postal Authority, alongwith the parcel or package, a claim in the form at Annexure
I, in quadruplicate, duly filled in.
(2) The date of receipt of the aforesaid claim form by the proper officer of Customs from the postal authorities shall be deemed
to be date of filing of drawback claim by the exporter for the purpose of section 75A and an intimation of the same shall be
given by the proper officer of customs to the exporter in such form as the Commissioner of Customs may prescribe.
(3) In case the aforesaid claim form is not complete in all respects, the exporter shall be informed of the deficiencies therein
within fifteen days of its receipt from postal authorities by a deficiency memo in the form prescribed by the Commissioner of
Customs, and such claim shall be deemed not to have been received for the purpose of sub-rule (2).
(4) When the exporter complies with the requirements specified in the deficiency memo within thirty days of its return, he shall
be issued an acknowledgement by the proper officer in the form prescribed by the Commissioner of Customs and the date of
such acknowledgement shall be deemed to be date of filing the claim for the purpose of section 75A.
12. Statement/Declaration to be made on exports other than by Post. -
(1) In the case of exports other than by post, the exporters shall at the time of export of the goods -
(a) state on the shipping bill or bill of export, the description, quantity and such other particulars as are necessary for deciding
whether the goods are entitled to drawback, and if so, at what rate or rates and make a declaration on the relevant shipping bill
or bill of export that -
(i) a claim for drawback under these rules is being made;
(ii) in respect of duties of Customs and Central Excise paid on the containers, packing materials and materials and the service
tax paid on the input services used in the manufacture of the export goods on which drawback is being claimed, no separate
claim for rebate of duty or service tax under the Central Excise Rules, 2002 or any other law has been or will be made to the
Central Excise authorities :
(In rule 12, in sub-rule (1), in clause (a), sub-clause (ii) has been substituted has been substituted vide Notification No.
10/2006 - Customs (N.T.) dated 15/02/2006)
Provided that if the Commissioner of Customs is satisfied that the exporter or his authorised agent has, for reasons beyond his
control, failed to comply with the provisions of this clause, he may, after considering the representation, if any, made by such
exporter or his authorised agent, and for reasons to be recorded, exempt such exporter or his authorised agent from the
provisions of this clause;
(b) furnish to the proper officer of Customs, a copy of shipment invoice or any other document giving particulars of the
description, quantity and value of the goods to be exported.
(2) Where the amount or rate of drawback has been determined under rule 6 or rule 7, the exporter shall make an additional
declaration on the relevant shipping bill or bill of export that -
(a) there is no change in the manufacturing formula and in the quantum per unit of the imported materials or components, if any,
utilised in the manufacture of export goods; and
(b) the materials or components, which have been stated in the application under rule 6 or rule 7 to have been imported,
continue to be so imported and are not being obtained from indigenous sources.
13. Manner and time for claiming drawback on goods exported other than by post. -
(1) Triplicate copy of the Shipping Bill for export of goods under a claim for drawback shall be deemed to be a claim for
drawback filed on the date on which the proper officer of Customs makes an order permitting clearance and loading of goods
for exportation under section 51 and said claim for drawback shall be retained by the proper officer making such order.
(2) The said claim for drawback should be accompanied by the following documents, namely :-
(i) copy of export contract or letter of credit, as the case may be,
(ii) copy of Packing list,
(iii) copy of ARE-1 , wherever applicable,
(iv) insurance certificate, wherever necessary, and
(v) copy of communication regarding rate of drawback where the drawback claim is for a rate determined by the
Commissioner of Central Excise or the Commissioner of Customs and Central Excise, as the case may be under
rule 6 or rule 7 of these rules.
(In rule 13 in sub-rule (2) bold words has been substituted vide Notification No.20/2003 - customs (N.T.) dated 03/03/2003)
(3) (a) If the said claim for drawback is incomplete in any material particulars or is without the documents specified in sub-rule
(2), shall be returned to the claimant with a deficiency memo in the form prescribed by the Commissioner of Customs within 10
days and shall be deemed not to have been filed for the purpose of section 75A.
(b) where the exporter resubmits the claim for drawback after complying with the requirements specified in the deficiency
memo, the same will be treated as a claim filed under sub-rule (1) for the purpose of section 75A.
(4) For computing the period of two months prescribed under section 75A for payment of drawback to the claimant, the time
taken in testing of the export goods, not more than one month, shall be excluded.
(5) Subject to the provisions of sub-rules (2), (3) and (4), where the exporter has exported the goods under electronic shipping
bill in Electronic Data Interchange (EDI) under the claim of drawback, the electronic shipping bill itself shall be treated as the
claim for drawback.
14. Payment of drawback and interest. -
(1) The drawback under these rules and interest, if any, shall be paid by the proper officer of Customs to the exporter or to the
agent specially authorised by the exporter to receive the said amount of drawback and interest.
(2) The officer of Customs may combine one or more claims for the purpose of payment of drawback and interest, if any, as
well as adjustment of any amount of drawback and interest already paid and may issue a consolidated order for payment.
(3) The date of payment of drawback and interest, if any, shall be deemed to be, in the case of payment -
(a) by cheque, the date of issue of such cheque, or
(b) by credit in the exporter"s account maintained with the Custom House, the date of such credit.
15. Supplementary claim. -
(1) Where any exporter finds that the amount of drawback paid to him is less than what he is entitled to on the basis of the
amount or rate of drawback determined by the Central Government or Commissioner of Central Excise or the
Commissioner of Customs and Central Excise, as the case may be , he may prefer a supplementary claim in the form at
Annexure III :
Provided that the exporter shall prefer such supplementary claim within a period of three months, -
(i) where the rate of drawback is determined or revised under rule 3 or rule 4, from the date of publication of such rate in the
official Gazette;
(ii) where the rate of drawback is determined or revised upward under rule 6 or rule 7, from the date of communicating the said
rate to the person concerned;
(iii) in all other cases, from the date of payment or settlement of the original drawback claim by the proper officer.
Provided further that the aforesaid period of three months may be extended by the Assistant Commissioner of Customs of
Deputy commissioner of Customs for a further period of nine months on being satisfied that the exporter was prevented by
sufficient cause from filling his supplementary claim within the aforesaid period of three months.
(In rule 15 in sub-rule (1) second proviso has been substituted vide Notification No. 14/2004 - Customs (N.T.) dated
02/2004)
(In rule 15 sub-rule (1) has been substituted vide Notification No. 20/2003 - Customs (N.T.) dated 03/03/2003)
(2) Save as otherwise provided in this rule, no supplementary claim for drawback shall be entertained.
(3) The date of filing of the supplementary claim for the purpose of section 75A shall be the date of affixing the Dated Receipt
Stamp on such claims which are complete in all respects and for which an acknowledgement shall be issued in the form
prescribed by the Commissioner of Customs.
(4) (a) Claims which are not complete in all respects or are not accompanied by the required documents shall be returned to
the claimant with a deficiency memo in the form prescribed by the Commissioner of Customs within fifteen days of submission
and shall be deemed not to have been filed.
(b) Where the exporter resubmits the supplementary claim after complying with the requirements specified in the deficiency
memo, the same will be treated as a claim filed under sub-rule (1) for the purpose of section 75A.
16. Repayment of erroneous or excess payment of drawback and interest. -
Where an amount of drawback and interest, if any, has been paid erroneously or the amount so paid is in excess of what the
claimant is entitled to, the claimant shall, on demand by a proper officer of Customs repay the amount so paid erroneously or in
excess, as the case may be, and where the claimant fails to repay the amount it shall be recovered in the manner laid down in
sub-section (1) of section 142 of the Customs Act, 1962 (52 of 1962).
16A. Recovery of amount of Drawback where export proceeds not realised. -
(1) Where an amount of drawback has been paid to an exporter or a person authorised by him (hereinafter referred to as the
claimant) but the sale proceeds in respect of such export goods have not been realised by or on behalf of the exporter in India
within the period allowed under the Foreign Exchange Management Act, 1999 (42 of 1999) , including any extension of
such period, such drawback shall be recovered in the manner specified below.
(In rule 16A,in sub-rule (1) bold words has been substituted vide Notification No. 19/2003 - Customs (N.T.) dated
03/03/2003)
Provided that the time-limit referred to in this sub-rule shall not be applicable to the goods exported from the Domestic Tariff
Area to a special economic zone.
(Proviso has been inserted vide Notification No. 19/2003 - Customs (N.T.) dated 03/03/2003)
(2) If the exporter fails to produce evidence in respect of realisation of export proceeds within the period allowed under the
Foreign Exchange Management Act, 1999, or any extension of the said period by the Reserve Bank of India, the Assistant
Commissioner of Customs or the Deputy Commissioner of Customs, as the case may be or Deputy Commissioner of
Customs shall cause notice to be issued to the exporter for production of evidence of realisation of export proceeds within a
period of thirty days from the date of receipt of such notice and where the exporter does not produce such evidence within the
said period of thirty days, the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be
or Deputy Commissioner of Customs shall pass an order to recover the amount of drawback paid to the claimant and the
exporter shall repay the amount so demanded within ) thirty days of the receipt of the said order :
(In rule 16A, in sub-rule (2) has been substituted vide Notification No. 10/2006 - Customs (N.T.) dated 15/02/2006)
Provided that where a part of the sale proceeds has been realised, the amount of drawback to be recovered shall be the
amount equal to that portion of the amount of drawback paid which bears the same proportion as the portion of the sale
proceeds not realised bears to the total amount of sale proceeds.
(3) Where the exporter fails to repay the amount under sub-rule (2) within said period of )thirty days referred to in sub-rule (2), it
shall be recovered in the manner laid down in rule 16.
(4) Where the sale proceeds are realised by the exporter after the amount of drawback has been recovered from him under
sub-rule (2) or sub-rule (3) and the exporter produces evidence about such realisation within one year from the date of such
recovery of the amount of drawback, the amount of drawback so recovered shall be repaid by the Assistant Commissioner of
Customs or Deputy Commissioner of Customs to the claimant.
17. Power to relax. -
If the Central Government is satisfied that in relation to the export of any goods, the exporter or his authorised agent has, for
reasons beyond his control, failed to comply with any of the provisions of these rules, and has thus been entitled to drawback, it
may, after considering the representation, if any, made by such exporter or agent, and for reasons to be recorded in writing,
exempt such exporter or agent from the provisions of such rule and allow drawback in respect of such goods.
18. Repeal and saving. -
(1) As from the commencement of these rules, the Customs and Central Excise Duties Drawback Rules, 1971 (hereinafter in
this rule referred to as the 1971 Rules) shall cease to operate.
(2) Notwithstanding such cesser of operation -
(a) every application made by a manufacturer or exporter for the determination or revisions of the amount or rate of drawback
in respect of goods exported before the commencement of these rules but not disposed of before such commencement shall
be disposed of in accordance with the provisions of the 1971 Rules as if these rules had not been made;
(b) any claim made by an exporter or his authorised agent for the payment of drawback in respect of goods exported before
the commencement of these rules but not disposed of before such commencement shall be disposed of in accordance with the
provisions of these rules;
(c) where a manufacturer or exporter has exported any goods before the commencement of the Customs and Central Excise
Duties Drawback (Third Amendment) Rules, 1996 and has not filed any claim for payment of drawback or the claim filed has
been returned to him for complying with any deficiencies, such manufacturer or exporter may file his claim in the form of
triplicate copy of Shipping Bill for export of goods under a claim for drawback along with documents prescribed in sub-rule (1)
of rule 13 by 30th June, 1997 and the same shall be deemed to be a claim filed under that rule;
(d) every amount or rate of drawback determined under the 1971 Rules and in force immediately before the commencement of
these rules shall be deemed to be the amount or rate of drawback determined under these rules until altered or superseded by
the Central Government.
(Rules 1 to 3, 5 to 7, 9,12,13,& 16A has been substituted vide CUS NTF NO. 80/2006 (NT) DATE 13/07/2006)
(Please refer Circular No. 04/2004 - Cus. dated 16/01/2004)
(Please refer Circular No. 02/2004 - Cus. dated 08/01/2004)
(Please refer Circular No. 108/2003 - Cus. dated 17/12/2003)
(Please refer Circular No. 97/2003 - Cus. dated 14/11/2003)
(Please refer Circular No. 83/2003 - Cus. dated 18/09/2003)
(Please refer Notification No. 26/2003 Customs (N.T.) dated 01/04/2003)
(Please refer Circular No. 24/2003 - Cus. dated 01/04/2003)
(Please refer Circular No. 14/2003 - Cus. dated 06/03/2003)
(Please refer Circular No. 10/2003 - Cus. dated 17/02/2003 for Sanction of All Industry Rate of Duty Drawback pending
fixation of Brand Rate of Drawback -regarding.)
(Please refer Circular No. .58/2002 - Cus. dated 12/09/2002)
