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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....2003, 83/2003 dated 18.9.2003, 89/2003 dated 25.9.2003 and 97/2003 dated 14.11.2003 whereby detailed instructions had been given for determining duty drawback by the Central Excise field formations under rule 6 and rule 7 of the Customs and Central Excise Duties Drawback Rules, 1995.  2. Duty drawback is a rebate of the duties of Customs and Central Excise suffered on the inputs used in the manufacture of the export product. During manufacture of the goods certain quantum of raw materials gets wasted. The percentage of wastage may vary from product to product and also depends upon  the type  of  machinery  and  technology  used by  the   exporters. Such waste generated during the process ....

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....It is, therefore, clarified that for determining drawback,  first the duty incidence amount should be computed on all the raw materials including the reasonable quantum of waste and, if any such waste is sold then the average amount of duties on such waste so sold shall be deducted.  Illustration for computation of drawback where recoverable waste is involved: For example, an exporter may use imported raw material 'GA Coil' for the manufacture of Hood for Car.Let us assume that the exporter has imported in total 1,48,510 Kgs. of GA Coil invoiced @ Rs. 29.50 per kg. The item is chargeable to Customs duties @ 25% Basic Customs duty plus 16% Countervailing duty (CVD) and 4% Special Additional duty(SAD). The cumulative Custom....