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

Duty drawback repayment must be deposited to customs and repaid with interest; nonpayment may be recovered under customs law. Excess or erroneously paid duty drawback and STR must be deposited to the Customs account and intimated with deposit details and the challan code; repayment obligations arise on demand and unpaid amounts may be recovered through Customs recovery mechanisms. Interest is chargeable on such repayments at the applicable statutory rate, and claimants should obtain the correct challan code from their customs house agent and follow deposit and intimation procedures. Commercial write-offs do not extinguish the statutory obligation to refund drawback and STR with interest.