Input Data Format for All Industry Rates of Duty Drawback

[Ref: D.O. F.No. 609/31/2010-DBK dated 1st April 2010]

Sub: All Industry Rates of Duty Drawback, 2010-2011.

Under the Duty Drawback Scheme administered by this Department the duties (Customs & Central Excise) paid on inputs and service tax paid on input services used in the manufacture of export goods are refunded to the exporters in the form of drawback. The drawback rates are worked out and notified every year after taking into account the budgetary changes in the duty structure and other relevant facts.

2.   The exercise is underway in the Ministry to re-work and revise the rates of duty drawback for the year 2010-2011.

3.   As you are aware, All Industry Rates of Duty Drawback are worked out by considering the consumption of input materials/services and the incidence of duties/taxes on these input materials/services. We would, therefore, request you to provide us with a comprehensive cost and consumption data regarding the various inputs/input services which are used in the manufacture of export products. A proforma in three parts is enclosed. I would like to emphasize that the consumption of input materials/services and incidence of duties/tax, which is shown against the export of a particular product must be relatable to it. Therefore, the second part of this proforma requires information on the actual cost incurred for making the exports and the sales realization on such exports. The third part of the proforma relates to the incidence of service tax on exports.

4.   Please ensure that data provided is as representative as possible. Data pertaining to at least five units should be submitted for each export product. The units should be selected from amongst the small, medium as well as large exporters so that the data is truly representative. Needless to say the data should be collected only from the manufacturers/manufacturer exporters. As far as possible, data should be supported by relevant documents such as Bills of Entry, Shipping Bills, invoices etc. Further, while submitting data in respect of a particular export item manufactured by a manufacturer, details of any/all input(s)/service(s) used in the manufacture of all types/styles of that particular export item should be indicated i.e. for instance, data on T-shirt/shoes should include total quantity/value of inputs/services used by that manufacturer for manufacture of all types of T-shirts/shoes. Secondly, the data should indicate the tot-al FOB value of T-shirts/shoes exported by that manufacturer.

5.   The Council is hereby advised that the cost data should be submitted only in respect of those units which are ready for getting their records and production process inspected by the Department for verifying the correctness of the data. Further, such units should submit a copy of the cost data to the Assistant Commissioner/Deputy Commissioner of Central Excise under whose geographical jurisdiction their units fall.

6.   You are also requested to inform regarding anomalies, if any, noticed in the Drawback Schedule, both with reference to description of the goods or the rates. This will help us rationalize the schedule. Your suggestions are also welcome on any other aspect of the drawback scheme which you feel need to be examined.

7.   Since, the work is time bound in nature, you are requested to kindly furnish information in the prescribed proforma by 20th April, 2010. The information sought for with regard to anomalies may be sent separately in the form of a note. The information may also be sent by e-mail at mofdbkdatabank@hotmail.com.

8.   The government has, like the previous year, constituted a three-member committee for the formulation of All Industry Rates of Duty Drawback, 2010-2011. Should you wish to make a presentation before the committee, you may intimate in advance so that it can be organized.

Proforma 1.1

Data pertaining to October-December, 2009

Name of the Manufacturer/Exporter: ............................

Name of item produced and exported: …………………

Inputs

Unit

Average Ex factory price of the input during October-December, 2009

Average Domestic purchase price of the input during October-December, 2009

Quantity of domestic material used during October-December, 2009

Value of domestic material (excluding terminal excise duty) used during October-December, 2009

Total Amount of Excise duties paid on the material used during October-December, 2009

Average CIF price of the input

Quantity of Imported material used during October-December, 2009

Total CIF Value of imported material used during October-December, 2009

Total Amount of Customs duties paid on the material used during October-December, 2009

Quantity of goods sold in domestic market during October-December, 2009

Value of goods (excluding Terminal stage Excise Duty) sold in domestic market during October-December, 2009

Qty. of goods exported during October-December, 2009

1

2

3

4

5

6

7

8

9

10

11

12

13

14

 

Total FOB value of goods exported during October-December, 2009

Average FOB value of goods exported during October-December, 2009

Average FOB value of goods exported during January, 2010

15

16

17

Note : 1. Customs duties to include Basic Customs duty, CVD, Cess and any other duties.

Excise duty should include Cess.

2. To be completed by the individual manufacturer exporters.

3. Data should be submitted taking into account all types / models / styles / qualities of the export product.

4. In exceptional cases where the manufacturer is not in a position to submit data for the quarter October-December, 2009, he may submit the same for the preceding quarter i.e. July - September, 2009.

Proforma 1.2

Data pertaining to April, 2009 to December, 2009

For each major item of final product

This should list all the principal material inputs, e.g. steel or other metals or input chemicals or yarn or fabric etc. that go into the manufacture of the said product. It will not include common utilities such as electricity, fuel etc.

Inputs

Unit

Total Quantity of Import

Total Quantity of domestic production

Rate of import duty w.e.f. 26.02.2010

Rate of excise duty w.e.f. 26.02.2010

1

2

3

4

5

6

Note : 1. Customs duties to include Basic Customs duty, CVD, Cess and any other duties

Excise duty should include Cess etc.

2. To be completed by the Export Promotion Councils.

Proforma II

Summary Cost Sheet

Rs. per/Unit output

(Average for the most recent quarter (October to December, 2009 or July to September, 2009)

Company’s name:

Product name:

A.   Material cost

Item 1, 2, 3, ------- Provide the list of principal items of material cost

Sub-total --------

B.   Fuel, electricity, coal, coke etc. ……………

C.   Salaries, Wages &

Other overhead expenses (allocated/apportioned as is the costing practice adopted by

the unit for MIS, inventory valuation etc)………..

D.   Total cost of sales (as estimated as per the costing practice adopted by the unit for MIS,

inventory valuation etc.)…………………

E.   Domestic Sale price ………………….

F.    FOB realization………………………..

Note: 1. This data should be provided for major items of export for a number of major Companies which constituted a representative sample.

2. In exceptional cases where the manufacturer is not in a position to submit data for the quarter October-December, 2009, he may submit the same for the preceding quarter i.e. July - September, 2009.

Proforma III

Service Tax

For Major Export Companies in Your Industry to be Provided Separately For each Company

Period                                         :      April, 2009 to December, 2009

Company (Name)                        :

Products Exported                        :

Total Business Turnover (Income) :

Total value of Sales                     :

Of which:-

Domestic Sales                            :

Export                                        :

Total Service tax paid (Rupees)    :

Break-up of Total Service Tax

Service                         Tax Paid

1)

2)

3)

Service Tax on services directly relatable to export- itemized, such as export commission paid to foreign agents.

Service                         Tax Paid

1)

2)

3)

Sub Total:           _________

To be certified by the Company Auditor