Fixation of brand rate of duty drawback by the Central Excise field formations under Rules 6 and 7 of the Customs and Central Excise Duties Drawback Rules, 1995 - Removal of difficulties – regarding

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....bsp;  The fixation of duty drawback under Rule 6  (i.e. Brand Rate) in respect of those export products which do not figure in the All Industry Rate of Drawback Table or under Rule 7 (Special Brand Rate) where the   exporters  apply for such  fixation  on account  of  inadequate  rebate of  input  stage duties through  All Industry  Rate,  was earlier  centralised  in the  Ministry.  However,  as  a  measure of  decentralisation and  trade  facilitation,  the  powers for fixation  of  brand rate and  special  brand rate have been  delegated  to the  jurisdictional  Commissionerates  of  Central Excise through  the amended  Duty Drawback Rules.  For  the convenience of the field formations and  for the  guidance  of  the trade,  a comprehensive Customs Circular  No.14/2003 had been  issued  on 6^th  of March, 2003.  As  a result,  brand  rates/special brand rates  for  duty drawback  are  now ....

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....p; drawback  rate for  export  products manufactured  from  finished/lining  leather.  Field formations  are,  therefore,  advised  that  while  computing  the brand  rate of drawback for leather  articles  including  footwear,  the  All Industry  Rate  available  on  finished/lining  leather  may be  considered  on the consumption  of  finished/lining  leather in the  export  product.    Illustration:  Supposing,  the  leather  product  exported  is ready-made garment.   It   involved   predominant  usage  of  indigenous finished  leather, imported synthetic lining material,  duty  paid  imported  zippers and  metallic buttons.  In this case,  in respect of  the  imported  materials,  the  exporter  would be required  to produce duty  paying bills  of entry,  evidencing  the  Customs  duty  incidence suffered  on the....

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....over,  imported headlight, indigenous front  basket,  bicycle bell (SS  No. 87.52), bicycle stand (SS  No. 87.106),  carrier(SS  No. 87.63)  and  freewheel  multi-speed (SS  No. 87.112).              Brand rate of  drawback  in this  case  should be calculated by  including  following  components:-   ·         All Industry  Rate of  duty  drawback  appearing  at  SS  No.87.44,   ·         All Industry  Rates of  duty  drawback  for  various  accessories appearing  in the Duty Drawback  Table, in respect of which  the  exporter  proves  the  usage of  these  accessories  but  does not  furnish  any  duty paying  documents,  i.e., bicycle bell (SS  No. 87.52), bicycle stand (SS  No. 87.106),  carrier(SS  No. 87.63)  and  freewheel  multi-speed (SS  No. 87.112).   ....

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....ecial  Additional  Duty (SAD) on the same.   For  the  sake of illustration,  this duty incidence  is shown as  Rs.31,561.00.             As  regards bus  body,  the  same is  got  manufactured  from  the  bus body  builder and  the  exporter produces  an  invoice  from  the  bus  body  builder indicating  the cost of  the bus body.  Let  us  say,  in this  case,  the cost of  the body  building  is Rs.3,90,000.00. The duty drawback  on account of  body  building  shall be allowed  @ 7%,  i.e., Rs.27,300.00.              The  exporter  would be  eligible  for  total  drawback  rate  of  Rs.58,861.00, i.e., 31,561.00 (Customs allocation) + Rs.27,300.00 (Central Excise  allocation).   ( c)   Fixation and  approval of  brand  rate  of  duty drawback  as laid&....