Duty Draw Back Scheme provides one of the important means of neutralizing the Excise, customs, service tax and education cess impact on exports. Every year, Duty Draw Back rates are announced by the Government. Though generally the Duty Draw Back rates are effective from April, this time Government has specified that for some product groups only, the rates will be effective from 1.4.2007 and for the rest, revised rates of drawback would be applicable from 18th July, 2007. The Draw Back rates for the year 2007-2008 have been announced vide Notification No. 68/2007-CUS (NT) dated 16th July, 2007. These rates are All Industry rates based upon very broad parameters such as prices of inputs, standard input output norms (SION), data collected by the Department by DGFT, share of imports in the total consumption of input and the data collected by the Government from other sources. All Industry rates are very useful for exporters as the claim is based upon the rate of draw back mentioned in the Notification and the draw back is automatically entitled to be given to an exporter.

The rates of draw back announced take into account incidence of service tax paid on various input services, duty on HSD/furnace oil and education cess. The Ministry of Finance had appointed an Expert Committee last year to fix the draw back rates and accordingly, based upon the recommendations, the revised rates of draw back have been announced. The draw back rates have undergone important changes and in most of the cases there have been upward revision of draw back rates. In textile sectors, the rate of draw back has been considerably fine tuned. There has been an upward revision in the rates by 2 to 3% in many cases and in some cases even by 3% such as in the case of some sports goods.

The current edition gives the new rates of draw back (All India Rates). Where there are no All India rates or where the All India rates are considerably lesser, the exporters can approach the jurisdictional Commissioner of Central Excise for fixing the brand rates. The procedure for fixing the brand rates is substantially the same as in the previous year and this has been explained in the relevant Chapter.

While bringing out this revised edition, opportunity has also been taken to revise the contents in the context of changes/amendments brought about in the Rules /Notifications, These have been incorporated at appropriate places.

We sincerely hope that this new edition will be as useful and handy for reference, as the previous edition, by exporters, consultants and practitioners as well as Departmental officials.

We are extremely grateful to Mr. R.A. Garg of Commercial Law Publishers (I) Pvt. Ltd. who has shown immense interest and enthusiasm in bringing out this updated edition, We are also thankful to Mr. E.G.K. Menon and Mr. R. Sampath of our office for their assistance.

We once again value suggestions from the readers.

Chapter 1--Duty Drawback--Background

Chapter 2--Drawback of Customs Duties Paid on Re-exports of Imported Goods

Chapter 3--Drawback under the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995

Chapter 4--All Industry rates of Drawabck

Chapter 5--Procedure for claiming drawback under all industry rate

Chapter 6--Brand Rate of Drawback

Chapter 7--Prohibition/Regulation of Drawback in Certain Cases

Chapter 8--Drawback in case of deemed exports

Chapter 9--Drawback of duty on Fuels Procured from Domestic oil companies by EOUs

Chapter 10--Disputes/Litigations/Judicial Ruling in Drawback Matters

All Industry rates of Duty drawback 2007-2008

Duty Drawback Circulars