Home» Eximcirculars» Viewcirculars» Duty Drawback Amendments Effective From 1.7.2017 To The All Industry Rates Of Duty Drawback And Other Drawback Related Changes.

CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle 4th Fl., 7 Cooperage Road, Mumbai - 400 001.India.

Tel : +91 22 22021288 / * Fax : +91 22 22026684 *

E-mail : info@chemexcil.gov.in Web : https://chemexcil.in

TO ALL MEMBERS OF COUNCIL

Dear Members,

Kindly note that CBEC has issued Circular No. 22/2017-Customs regarding Amendments effective from 1.7.2017 to the All Industry Rates of Duty Drawback and other Drawback related changes.

Some of the important transition arrangements as per above-said circular are reproduced below for your convenience-

a) Transition period:

In order to ensure smooth transition to the GST regime, Government has allowed the extant Duty Drawback scheme to continue for a period of three months i.e. from 1.7.2017 to 30.9.2017.

The exporter may, for exports made during this period, continue to claim the composite rates i.e. rates and caps given under columns (4) and (5) respectively of the Schedule of AIRs of duty drawback, subject to certain additional conditions. During the transition period, exporters can also claim Brand rate of duty/tax incidence as they have been doing earlier. The conditions imposed for claiming these composite rates aim to ensure that the exporters do not claim composite AIRs of duty drawback and simultaneously avail input tax credit of Central Goods and Services Tax (CGST) or Integrated Goods and Services Tax (IGST) on the export goods or on inputs and input services used in manufacture of export goods or claim refund of IGST paid on export goods. Further, an exporter claiming composite rate shall also be barred to carry forward Cenvat credit on the export goods or on inputs or input services used in manufacture of export goods in terms of the CGST Act, 2017. The exporters have to give a declaration and certificates as prescribed in this Notification at the time of export. Similar checks shall apply while determining the Brand rate of drawback. While a transition period of three months has been allowed, the exporters shall have an option to claim only Customs portion of AIRs of duty drawback i.e. rates and caps given under column (6) and (7) respectively of the Schedule of AIRs of duty drawback and avail input tax credit of CGST or IGST or refund of IGST paid on exports.

(b) Changes in AIRs:

For chemical products, there are no changes as of now.

Members are requested to take note of the above circular provisions. For full text of the circular, please download using below link-

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ22-2017cs.pdf

Thanking You,    

Yours faithfully, 

(S.G. BHARADI)
Executive Director
CHEMEXCIL

Encl : Circular