MANU/CUST/0038/2020

Ministry : Ministry of Finance

Department/Board : CBEC Customs

Instruction No. : 07/2020-Customs

Date : 28.05.2020

Notification/ Circulars Referred : Instruction No. 03/2020-Customs dated 09.04.2020 MANU/CUST/0022/2020

Citing Reference:
Instruction No. 03/2020-Customs dated 09.04.2020 MANU/CUST/0022/2020  Referred

To,

All Principal Chief Commissioners/Chief Commissioners
of Customs/Customs (Preventive)/Customs & Central Tax
under CBIC

Madam/Sir,

Special drive for disposal of applications for fixation of Brand Rate of Duty Drawback

To mitigate the hardship caused by the Covid-19 pandemic to the trade and industry and other stakeholders, Board vide Instruction No. 03/2020-Customs dated 09.04.2020 had initiated a special refund and drawback disposal drive from 09.04.2020 to 30.04.2020 with the objective of priority processing and disposal of all pending refund and drawback claims so as to provide immediate relief to the business entities and especially MSMEs.

2. Representations have also been received in the Board from exporters about delay in fixation and disbursal of Brand Rate of duty drawback. The reports regarding age wise pendency status of applications for fixation of Brand Rate received from the Zones show that a majority of them are pending beyond the period of six months.

3. Brand Rate of duty drawback can be claimed on the basis of actual incidence of duties under Rules 6 or 7 of Customs and Central Excise Duties Drawback Rules, 2017 (Drawback Rules, 2017). Prior to the Drawback Rules, 2017, claims for Brand Rate of duty drawback were filed in terms of Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. In addition to the Brand Rate fixation, payment of provisional All Industry Rate (AIR) of duty drawback in cases of export under claim for Brand Rate is to be allowed under Rule 7(3) to the claimants. A facility to obtain a provisional Brand Rate is also available under Rule 6(2) and