 |
OFFICE OF THE
COMMISSIONER OF CUSTOMS, |
PUBLIC
NOTICE NO. 96 /2001
Sub: Procedure for verification of brand rate applications against
export of processed fabrics &
garments.
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Govt. of
India, Min. of Finance, Dept. of Revenue, New Delhi, Circular No.08/2001-Cus.,
vide F.No.601/5501/42/99-DBK dated 20.02.2001, is reproduced below for the
guidance of the Importers, Clearing Agents, and Trading Public.
C11/11/2001-AP(PORT) (S.
SANKARAVADIVELU)
CUSTOM HOUSE, CHENNAI-1. DY. COMMR. OF CUSTOMS (APPG)
DATE: 24.05.2001
________________________________________________________________________
CIRCULAR NO.08/2001-CUS.
F.NO.601/5501/42/99-DBK
DATED 20.02.2001
A number of discrepancies have since been observed by
Drawback Directorate in the brand rate applications submitted by the exporters
and verification reports carried out by field formations in regard to
reimbursement of yarn duty against export of processed fabrics & garments.
2.
The relevant issues have been examined in the Board
and the following decisions have been taken :
i)
Brand rate is being claimed against yarn duty and
is admissible against exports. Therefore, verification has to involve the fact
of export and yarn consumption. It is, therefore, decided that the verification
will be carried out by the Central Excise formation having jurisdiction over
the premises from where the export is effected, which is normally the
processor’s premises. Yarn consumption & wastage thereof should be verified
either physically, at the weaver’s premises, or on the basis of documents
produced by the exporter/processor/weaver. In case of doubt or if such
documents are inadequate, a reference may be made to the jurisdictional Central
Excise Officer of the weaver, if necessary. However, only one verification
report shall be sent to Drawback Directorate by the said jurisdictional
formation of the processor. It should be independent of a Chartered
Engineer’s/Chartered Accountant’s Certificate or the Standard Input-Output
Norms notified by DGFT.
ii)
Verification report shall clearly indicate the
names of processors and weavers and the quantities processed/woven by each of
them.
iii)
The exporter must declare the precise composition
and blend of fabric exported under each shipping bill. This must be verified in
relation to AR4, BDK-I and DBK-III statements, and the composition/blend of
yarn given in each supporting excise invoice as well as commercial invoice
produced by the exporter against which Drawback is desired.
iv)
Drawback is admissible only if precisely both the
consignments of yarn on which duty has been paid and for which invoices have
been submitted is used in the manufacture of the export product. Therefore, the
exporter shall submit proper excise invoices for such yarn, supported by
corroborating commercial invoices and disclaimer certificates in case the
exporter himself is not the consignee in excise invoices; the commercial
invoices and the disclaimer certificates must prove the movement of those
consignments of yarn for ultimate consumption in the export product.
v)
The disclaimer certificates, wherever submitter,
should be neatly prepared on proper letter heads of the issuing firm, clearly
indicating complete address and telephone numbers of the issuing firm, and must
be signed by a responsible Officer clearly indicating his name as well as
designation. The same should be properly verified by the verifying Officers.
vi)
The corroboration between proper central excise
invoices and relevant commercial invoices should be properly carried out on the
basis of lot number, challan number etc. to ensure that the commercial invoices
pertain to that very particular consignment which was cleared against the relevant
excise invoice.
vii)
In case corroboration between export product and
yarn consumed is sought to be established by involving the movement of grey
fabrics, such corroboration should also be based on technical characteristics
of yarn/grey fabrics/export product like counter/denier, reed and pick etc.
viii)
The brand rate application has to be submitted
within 90 days from the date of 1st export. Time barred applications
need not be verified, and a simple letter indicating the fact of time bar
alongwith the copy of the application may be sent to Drawback Directorate for
issuing the necessary rejection letter. In case certain shipping bills/period
is time barred, the same should also be clearly indicated in the verification
report.
ix)
A brand rate application is complete only if
submitted alongwith completed DBK-I/II/III statements alongwith
DBK-IIA/DBK-IIIA statements (wherever necessary). An application with
inadequate data on the basis of which brand rate cannot be calculated is
treated as null and void and is summarily rejected by the Drawback Directorate.
Whenever, such applications are received in the field formations, this fact
must be mentioned clearly in the verification report and the date on which duly
completed statements are received may also be indicated. In such cases, the
period of 90 days for submission of brand rate applications shall be counted
from the date of duly completed statements/duly completed applications only.
2.
It may finally be emphasised that any lapses in
carrying out proper verification may lead to fixation of brand rate in
in-eligible cases and ultimate revenue loss, which needs to be prevented.
Therefore, the above instructions in addition to any other instructions issued
earlier on the subject should be scrupulously and strictly followed.
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