THE CUSTOMS ACT, 1962 (52 of 1962)
CHAPTER X
Drawback
SECTION 74. Drawback allowable on re-export of
duty-paid goods. – (1) When
any goods capable of being easily identified which have been imported into India
and upon which any duty has been paid on importation, -
(i) are entered for export and the proper officer makes an order
permitting clearance and loading of the goods for exportation under section 51;
or
(ii) are to be
exported as baggage and the owner of such baggage, for the purpose of clearing
it, makes a declaration of its contents to the proper officer under section 77
(which declaration shall be deemed to be an entry for export for the purposes
of this section) and such officer makes an order permitting clearance of the
goods for exportation; or
(iii) are entered for
export by post under section 82 and the proper officer makes an order
permitting clearance of the goods for exportation, ninety-eight per cent of
such duty shall, except as otherwise hereinafter provided, be re-paid as
drawback, if -
(a) the
goods are identified to the satisfaction of the Assistant Commissioner of
Customs or Deputy Commissioner of Customs as the goods which were imported; and
(b) the
goods are entered for export within two years from the date of payment of duty
on the importation thereof :
Provided that
in any particular case the aforesaid period of two years may, on sufficient
cause being shown, be extended by the Board by such further period as it may
deem fit.
(2) Notwithstanding anything contained in sub-section (1),
the rate of drawback in the case of goods which have been used after the
importation thereof shall be such as the Central Government, having regard to
the duration of use, depreciation in value and other relevant circumstances,
may, by notification in the Official Gazette, fix.
(3) The Central Government may make rules for the purpose of
carrying out the provisions of this section and, in particular, such rules may
—
(a) provide for the manner in which the identity of goods
imported in different consignments which are ordinarily stored together in
bulk, may be established;
(b) specify the goods which shall be deemed to be not capable of
being easily identified; and
(c) provide for the manner and the time within which a claim for
payment of drawback is to be filed.
(4) For the purposes of this section -
(a) goods shall be deemed to have been entered for export on the
date with reference to which the rate of duty is calculated under section 16;
(b) in the case of goods assessed
to duty provisionally under section 18, the date of payment of the provisional
duty shall be deemed to be the date of payment of duty.
SECTION 75. Drawback on imported materials used in the manufacture of
goods which are exported. - (1) Where it appears to the Central Government that in
respect of goods of any class or description manufactured, processed or on
which any operation has been carried out in India , being goods which have been
entered for export and in respect of which an order permitting the clearance
and loading thereof for exportation has been made under section 51 by the
proper officer, or being goods entered for export by post under section 82 and
in respect of which an order permitting clearance for exportation has been made
by the proper officer, a drawback should be allowed of duties of customs
chargeable under this Act on any imported materials of a class or description
used in the manufacture or processing of such goods or carrying out any
operation on such goods, the Central Government may, by notification in the
Official Gazette, direct that drawback shall be allowed in respect of such
goods in accordance with, and subject to, the rules made under sub-section (2).
Provided that
no drawback shall be allowed under this sub-section in respect of any of the
aforesaid goods which the Central Government may, by rules made under
sub-section (2), specify, if the export value of such goods or class of goods
is less than the value of the imported materials used in the manufacture or
processing of such goods or carrying out any operation on such goods or class
of goods, or is not more than such percentage of the value of the imported
materials used in the manufacture or processing of such goods or carrying out
any operation on such goods or class of goods as the Central Government may, by
notification in the Official Gazette, specify in this behalf :
Provided further
that where any drawback has been allowed on any goods under this sub-section
and the sale proceeds in respect of such goods are not received by or on behalf
of the exporter in India within the time allowed under the Foreign Exchange
Management Act, 1999 (42 of 1999), such drawback shall except under such
circumstances or such conditions as the Central Government may, by rule,
specify be deemed never to have been allowed and the Central Government may, by
rules made under sub-section (2), specify the procedure for the recovery or
adjustment of the amount of such drawback.
(1A) Where it appears to the Central Government that the
quantity of a particular material imported into India is more than the total
quantity of like material that has been used in the goods manufactured,
processed or on which any operation has been carried out in India and exported
outside India, then, the Central Government may, by notification in the
Official Gazette, declare that so much of the material as is contained in the
goods exported shall, for the purpose of sub-section (1), be deemed to be imported
material.
(2) The Central
Government may make rules for the purpose of carrying out the provisions of
sub-section (1) and, in particular, such rules may provide –
(a) for the payment of drawback
equal to the amount of duty actually paid on the imported materials used in the
manufacture or processing of the goods or carrying out any operation on the
goods or as is specified in the rules as the average amount of duty paid on the
materials of that class or description used in the manufacture or processing of
export goods or carrying out any operation on export goods of that class or
description either by manufacturers generally or by persons processing or
carrying on any operation generally or by any particular manufacturer or
particular person carrying on any process or other operation, and interest if
any payable thereon;
(aa) for
specifying the goods in respect of which no drawback shall be allowed;
(ab) for specifying the procedure for recovery or
adjustment of the amount of any drawback which had been allowed under
sub-section (1) or interest chargeable thereon;
(b) for the production of such certificates, documents and other
evidence in support of each claim of drawback as may be necessary;
(c) for
requiring the manufacturer or the person carrying out any process or other
operation to give access to every part of his manufactory to any officer of
customs specially authorised in this behalf by the
Assistant Commissioner of Customs or Deputy Commissioner of Customs to enable
such authorised officer to inspect the processes of
manufacture, process or any other operation carried out and to verify by actual
check or otherwise the statements made in support of the claim for drawback.
(d) for the manner and the time within which the
claim for payment of drawback may be filed;
(3) The power to make rules conferred by sub-section
(2) shall include the power to give drawback with retrospective effect from a
date not earlier than the date of changes in the rates of duty on inputs used in
the export goods.
SECTION 75A. Interest
on drawback. - (1) Where any
drawback payable to a claimant under section 74 or section 75 is not paid
within a period of one month from the date of filing a claim for payment of
such drawback, there shall be paid to that claimant in addition to the amount
of drawback, interest at the rate fixed under section 27A from the date after
the expiry of the said period of one month till the
date of payment of such drawback :
(2) Where any drawback has been paid to the claimant
erroneously or it becomes otherwise recoverable under this Act or the rules
made thereunder, the claimant shall, within a period
of two months from the date of demand, pay in addition to the said amount of
drawback, interest at the rate fixed under section 28AB and the amount of
interest shall be calculated for the period beginning from the date of payment
of such drawback to the claimant till the date of recovery of such drawback.
SECTION 76. Prohibition
and regulation of drawback in certain cases. – (1) Notwithstanding
anything hereinbefore contained, no drawback
shall be allowed –
(a) Omitted
(b) in respect of any goods the market-price of which is less
than the amount of drawback due thereon;
(c) where the drawback due in respect of any goods is less than
fifty rupees.
(2) Without prejudice
to the provisions of sub-section (1), if the Central Government is of opinion
that goods of any specified description in respect of which drawback may be
claimed under this Chapter are likely to be smuggled back into India, it may,
by notification in the Official Gazette, direct that drawback shall not be
allowed in respect of such goods or may be allowed subject to such restrictions
and conditions as may be specified in the notification.
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