Duty drawback

[Guest]

Dear experts

we exported material under duty drawback, our drawback and STR also sanctioned, but due to some technical problem in product we short received payment from overseas customer.

please advice what is procedure to payback drawback and STR amount to custom

Thanking you in advance

Zulfikar B. Vohra

[MANISH SINHA]

Dear Mr. Vohra,

Excess realized Duty Drawback and STR may be deposited to Customs Account and same to be intimated along with details and deposit challan to Customs authority.

Regards,

Manish Sinha

[Guest]

thank you so much sir, your information will needfull with us.

secondly also inform us payback drawback to custom on which code (i.e. challn code) and interest rate?

Zulfikar B. Vohra

[MANISH SINHA]

Dear Sir,

Please follow Rule 16 of Duty Drawback Rule 1995. Ask the code from your CHA. Budget 2016 provides various category of Interest Rate. At present interest rate is 15%.

Rule 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).

Regards,

Manish Sinha

[Guest]

Thank you so much for guid me

[CSSANJAY MALHOTRA]

Dear MR. Manish Sinha ji,

Nicely explained.

[MANISH SINHA]

Thank you Sir Sh. Sanjay Malhotra ji. Always looks forward for your addition.

Regards,

Manish

[Kishan Barai]

Is your payment received too short ??

Exporters can write off bills up to 5%

Status holder can write off bills up to 10%

There is no limits for SEZ.

Thank You.

[YAGAY andSUN]

Writing off 5% or 10% will not absolve from the liability to pay back the Duty Drawback along with interest at applicable rate.

[Guest]

THANK YOU SO MUCH SIR.

AI Summary

Repay Duty Drawback with Interest for Short Payments: Follow Rule 16 of Duty Drawback Rules 1995. An individual inquired about the procedure to repay duty drawback and STR amounts to customs due to receiving a short payment from an overseas customer. An expert advised depositing the excess realized amounts into the Customs Account and notifying the authorities with the details. The expert further explained the process under Rule 16 of the Duty Drawback Rules 1995, mentioning an interest rate of 15%. Other contributors noted that writing off a percentage of the short payment does not exempt the obligation to repay the duty drawback with interest. The discussion involved multiple participants providing guidance and clarification.