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Dear Members,

As you are aware, at present, exporters desirous of having Brand Rate of drawback for their products have to make application in the prescribed proforma. One copy of the application have to be submitted to the Directorate of Drawback, Department of Revenue and two copies to the concerned Commissioner of Customs/Central Excise having jurisdiction over the factory of production. The data furnished in the Brand rate applications have to be verified by the Jurisdictional Commissionerates of Central Excise and based on their verification reports, the Brand rates are subsequently fixed by Directorate of Drawback.

There had been several representations from the Industry to the CLE stating that the aforementioned process leads to delays in getting the data verified by the Central Excise Commissionerates, and the consequent fixation of Brand Rates. The CLE had taken up this matter with the Union Government, emphasizing the need for timely fixation of Brand Rates through simplified procedures. 

We are now happy to inform our members that the Department of Revenue favorably considered the Councilís representation and announced new guidelines for fixation of Brand Rate of drawback under the simplified scheme. The following are the brief details of the simplified scheme specified by the Department of Revenue: 

  1. Commencing from 01.07.2002 (Let Export Date), all Brand Rate applications are required to be filed only under the simplified scheme, directly to the Directorate of Drawback. 

  2. The revised simplified scheme is extended to all the applicants for fixation of Brand Rate of drawback. 

  3. The present procedure of pre-verification of the data by the Central Excise Commissionerates has been dispensed with. 

  4. Unless there are special reasons, Brand Rate letters will be issued within a period of fifteen days in respect of applications, which are complete in all respects. Rejection letters will also be issued in respect of incomplete applications within the same period of fifteen days.

  5. The formats of the application for fixation of Brand Rate of drawback, DBK-I, II / IIA and III / IIIA statements have been accordingly revised. 

  6. All Brand Rate applications in the prescribed format and alongwith requisite annexures and documents addressed to the Joint Secretary (Drawback), Department of Revenue, Ministry of Finance, 3rd Floor, Jeevan Deep Building, 10, Parliament Street, New Delhi 110 001, are required to be sent by Registered / Speed Post. The applications may also be delivered to the Receipt Clerk at the Entrance Gate of the Department of Revenue at the aforesaid address. 

  7. While submitting the Brand Rate applications, the exporters are required to neatly page number the essential annexures / documents and to enclose them strictly in the order of DBK 1, DBK II/IIA, DBK III/IIIA Statements, shipping bill/s, bill of entry, invoices regarding payment of Central Excise duty, CENVAT availment / non-availment Certificate / declaration; Working sheet, Statement of value addition, and Statement of Exports etc. Further, these should be flagged / marked distinguishably to facilitate preliminary checking of these documents by the Receipt Clerk, while receiving the applications. 

  8. In case of merchant exporters / manufacturer-exporters who are getting the export products manufactured from their supporting manufacturers / vendors, as the case may be, a separate declaration, inter-alia, furnishing the details of the supporting manufacturer / vendors, Central Excise Registration No. if any, availment / non availment of the CENVAT benefit, duly authenticated by the Superintendent of Central Excise having jurisdiction over the manufacturing unit are required to be furnished. 

  9. The exporters are required to furnish original duty paying documents, viz., Bills of Entry pertaining to the imported items and Invoices evidencing payment of Central Excise duty in respect of the indigenous inputs with reference to the claim of Brand Rate of drawback. These original duty paid documents, which have been fully utilized with the Brand Rate claim, will be retained in the Directorate. The duty paid documents, which have been partially utilized for disposal of the Brand Rate claim, will however be returned to the exporters alongwith the requisite endorsement. Applications for issue of amendment and corrigendum to the Brand Rate letters are to be filed, maximum within a period of 3 months. 

  10. Brand Rate letters under the revised Simplified Scheme will be subject to post verification by the Central Excise Commissionerates / Officials of the Drawback Division of this Department. In case, after such post-verification, the data furnished in the applications are found to be incorrect, the corresponding Brand Rate letters will be revoked. Besides, the concerned exporters will be debarred from availing the benefit of the Simplified Scheme for the next one year. This is intended to deter filing of fraudulent / manipulated drawback claims.

The Directorate of Drawback will review the operation / efficacy of this revised Simplified Scheme in due course, and if deemed necessary corrective measures will be incorporated. The Joint Secretary (Drawback) will also hold Open House Meetings on quarterly basis in his office, the precise date of which will be intimated well in advance to the EPCs, for redressel of grievances with respect to the delay and rejection of the Brand Rate applications.

Members may kindly note the above and avail the simplified scheme for fixation of Brand Rate of drawback, in respect of leather & leather products. 

With best regards,
Yours sincerely,

S. Audiseshiah
Executive Director
July 8, 2002

N.B. Copies of the revised format of application, DBK Statements etc. may be obtained from the CLE Head Office as well as Regional Offices.