Customs Offers Reasons and Solutions for Drawback Delays
The following Public Notice
was issued by the Commissioner of Customs (Export) New Custom House, New Delhi
on 20th September 2011.
[Customs Public Notice No. 25 dated 20th September
2011]
A. Brand Rate Fixation
B. Claims under Query
C. Samples drawn
D. EGM not filed / EGM filed with errors/EGM Gateway
E. Short Shipment
Subject: Drawback - Information for exporters.
It is brought to the notice
of the trade of the facilitations made available by Customs to assist exporters
in obtaining their Drawback amounts. It has been noticed that the trade is not
aware of Customs system which will help them to clear up any problem regarding
payment of drawback. Normally all drawback claims are being disbursed within 07
working days. However, some cases get delayed and keep pending for years
together. It is in the interest of the exporters to check the status of their
drawback request after 07 days of the export by going to ICEGATE website and
obtaining the status. The website will show the reason for pendency, if any.
2. The major delays in payment of Drawback are in respect of
non-receipt of certain replies/documents from the exporters. The major issues
are:
a) Brand Rate Fixation
b) Replies to Queries raised with exporter
c) Test reports of Samples drawn
d) EGM not filed/EGM-error/EGM Gateway
Each matter is taken up
separately below:-
A. Brand Rate Fixation
In case an exporter is not
satisfied with the All Industry Rate of drawback, he will mention in the
Shipping Bill that he is going to claim Brand Rate Fixation. This means that
the Customs can take no further action to process the Drawback claims, until
Brand Rate Fixation letter is received from the concerned Central Excise Commissionerate. On enquiry by Air Cargo Customs from
Central Excise Commissionerates, they generally
inform us that there is no brand rate fixation request pending with them. It
may be noted that it is the responsibility of the exporter to follow up with
the concerned Central Excise Commissionerate and get the
Brand Rate Fixed. Under the Drawback Rules an exporter has to apply for brand
rate fixation within 60 days of the export. Therefore, the Brand Rate claims which
are pending for a long period could be due to not making of an application by
the exporter for Brand Rate fixation or non-submission of requisite documents/clarifications
to the Central Excise Authorities or rejection of the application by the
Central Excise Authorities. Exporters are requested to follow up and submit the
Brand Rate letters from concerned Central Excise Commissionerate.
They should also furnish the details of such applications pending with the
Excise Authorities to the Drawback Section of the Air Cargo (Export), IGI
Airport, Delhi. The details of Shipping Bills pending
Brand Rate Fixation for Drawback shown in EDI systems are also being uploaded
on the website of the Customs Air Cargo (Export), Delhi www.delhicustoms.gov.in.and the exporters are expected
to cooperate with the department to expedite their brand rate claims finalized
and disbursed. In case a Brand Rate Fixation letter is issued, but Drawback is
not paid, please approach the Dy. Commissioner (DBK) of Customs Air Cargo
(Export) with the documents.
B. Claims under Query
A large number of claims
are lying pending undisbursed due to “Query raised from exporter” since
introduction of EDI System. These claims are technically not pending with the
department but are shown pending with exporters for reply as per Rule 13(3) of
the Drawback Rules, 1995. After submitting the replies by the exporters under
EDI system, the claims are processed online in paperless manner and drawback is
disbursed.
With the implementation of
ICES 1.5 at Air Cargo Complex (Exports), New Delhi, the exporters can get the
status of their drawback Shipping Bills from ICEGATE website i.e. www.icegate.gov.in. Exporters are required to
click at “Tracking at ICES” and then at “Tracking at ICES 1.5” to see the
status of their pending drawback Shipping Bills. The exporters are required to
obtain a printout of the query from the Computer Maintenance Centre (CMC), Air
Cargo Complex, IGI Airport, Delhi and approach the
Drawback Section with relevant papers who will clear the query for getting the
same fed in the system by the CMC. The Shipping Bill will then come into the
queue for online processing of the Drawback claim.
The list of “Queries”
pending with exporters is uploaded on the website of the Customs Air Cargo
(Export), Delhi www.delhicustoms.gov.in. and the exporters should get the
queries removed immediately to enable this office to process the Drawback claims.
In case of “Query” cases, it may be ensured that query reply is complete in all
respects. Where the claim is older than 6 months, a copy of Bank Realization
Certificate (BRC) is also required. Exporters are required to submit BRC for
earlier shipments in case not already submitted.
C. Samples drawn
Exporters are requested to
approach the Assistant Commissioner (Export) of the Air Cargo Complex from
where the goods were exported, with records available with them for feeding of
test reports in the EDI systems. After verification Drawback will be paid to
them.
D. EGM not filed / EGM filed with errors/EGM Gateway
A large number of Export
General Manifests (EGMs) have not been filed electronically. The concerned
Airlines have been asked to file all such EGMs. Exporters are requested to take
up the matter with the concerned Airlines for getting the needful done. Please
note that the Airlines keep their records of EGMs only for 3 months, so it is
in the exporters‟ interest to approach them immediately. The airline is
responsible to file EGM electronically and correctly within 24 hours of the
departure of the Aircraft in addition to filing of EGM manually before the departure
of the Aircraft. It is further observed that in respect of a substantial number
of drawback shipping bills there are „EGM-errors‟ such as rotation number
mismatch, mismatch of number of packages mentioned in the Airway Bill and
shipping bill, mismatch of Airway Bill number in EGM and Shipping Bills, etc.
The exporter is required to approach the Assistant Commissioner (Export Processing)
with hard copy of the EGM (Cargo Manifest submission report from Airlines)
together with relevant documents such as EP copy of the Shipping Bill and
Airway Bill for verification and rectification of the EGM error immediately.
E. Short Shipment
Attention is also invited
to the ‘Notice of Short-Export Rules, 1963’ (copy enclosed). As per these
rules, the exporter must within one week of LEO inform Customs of short or part
shipment with a request to amend the Shipping Bills so as to process the
Drawback. Please note that in case the exporter does not file
the details of short shipment with Customs, drawback claims pertaining to all
the other shipments (House Airway Bills) covered under that Master Airway Bill
will get withheld thereby depriving the other exporters of their legitimate
export incentives. Exporters whose drawback is held up can check with
the airlines whether there has been a short shipment in the concerned Master
Airway Bill and inform Customs accordingly.
6. The Punjab National Bank and some other banks will provide the concerned
Shipping Bill number to the exporters when passing the drawback amount into
their drawback accounts. In case any bank does not provide the Shipping Bill
numbers, please ask for it specifically.
7. Attention is also invited to this office Public Notices No. 10/2010
dated 20.07.2010 and 13/2010 dated 19.08.2010 whereby some specified Shipping
Bills were removed from the ‘pending’ queue. If a particular Shipping Bill is
listed in these public notices then it is the duty of the Exporter to file a
Supplementary Claim immediately along with all documents so that the drawback
can be paid.
8. In
case of any difficulties, the Exporters may contact Shri
R.C. Sankhla, Additional Commissioner (Export) at
011-25654977 or email r_c_sankhla@indiatimes.com
or Shri R.K. Tyagi, Deputy
Commissioner (Drawback) at 011-25654390 or email rktyagi24@gmail.com.
Notice of Short-Export Rules, 1963
Notification No. 56-Cus., dated 1st
February, 1963
In exercise of the powers
conferred by section 156 of the Customs Act, 1962 (52 of 1962), the Central
Government hereby makes the following rules:-
1. Short title. – These rules may be called
the Notice of Short-Export Rules, 1963.
2. Exporter to furnish
information regarding Short-Export.- If any goods mentioned in a shipping bill or bill of export and
cleared for exportation are not exported, the exporter shall, within seven
days, from the dated of departure of the conveyance by which such goods were
intended to be exported, -
(1) Furnish the following information in writing to the proper officer
in respect of the goods not so exported, namely:-
(i) No. of Packages,
(ii) Description of goods,
(iii) Quantity,
(iv) Value,
(v) Country of destination, or
(2) Present the shipping bill or, as the case may be, the bill of
export for cancellation or amendment.
3. Penalty.- Any exporter who fails to comply with the provisions of rule 2
shall be liable to a penalty not exceeding one hundred rupees.