Duty Drawback Scheme and GST
By Ranjeet Mahtani and Suhasini Joshi The Duty Drawback Scheme introduced for incentivizing and facilitating exports has been continued under the GST regime. This drawback scheme is an export beneficiation where either a part, or in some cases the entire customs and central excise duties levied on inputs used in manufacturing export goods and Service tax on services used for export of such goods are refunded by the Central Government to the exporter. The exports that are eligible under this scheme are: export of goods which were imported into India as such, or export of goods which were imported into India for use for identified purposes and export of goods which are manufactured or produced out of materials which were either imported or indigenously procured. Under this ...
Duty Drawback changes notified by Govt
The Dollar Business Bureau The Government after considering various representations and feedback related to All Industry Rates (AIR) of Duty Drawback that took effect on 15.11.2016 has notified certain changes vide Notification No.03/2017-Customs (N.T.) dated 12.01.2017. These changes take effect from 15.01.2017. The changes include: Tariff entry for ‘Surimi Fish Paste’ under tariff item 160401 has been shifted to tariff item 030402 (Chapter 3- FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC INVERTEBRATES) and description of tariff item 160401 has been amended to read as ‘Surimi Analogue Product’ to address classification issue Drawback cap of Silk Fabric is being increased Drawback rates/caps are being changed for Man-made fibre floor coverings that come under the broad classification of Carpets and Other Textile Floor Coverings. They can be ...
Brand Rate Fixation-Brand Rates:Too cumbersome to claim?
Duty drawback rates in India are mostly associated with All Industry Rates (AIRs) based on SION. And while there is a provision for fixing Brand Rates, why do only a few exporters opt for it? Are Brand Rates suitable for only those exporters who engage in value additions and suffer from significant wastage during the production cycle? Is AIR actually more realistic in addition to being simple? And is the ‘claim process’ the very reason why Brand Rates isn’t a popular option for Indian exporters?Indranil das | January 2017 Issue | The Dollar BusinessIt’s a known fact that many governments across the globe, particularly those in highly protected economies, refund all taxes paid by an exporter – be it customs ...
