DGFT allows refund of drawback of Duty paid on inputs on All Industry Rate

Nov 04, 2019 | by Avantis RegTech Legal Research Team


The Directorate General of Foreign Trade (DGFT) on October 31, 2019, has made amendments in Chapter 7 of the Foreign Trade Policy (FTP) 2015-20 with effect from December 05, 2017 to allow the refund of drawback of duty paid on inputs on All Industry Rate.

Amended Chapter is as under:

Para No.

Existing Provision

Amended Provision

7.03(b)

Deemed Export Drawback for Basic Customs Duty (BCD)

Deemed Export Drawback

7.06

Conditions for refund of deemed export drawback

Supplies will be eligible for deemed export drawback as per para 7.03 (b) of FTP, as under:

The refund of drawback in the form of BCD of the inputs used in manufacture and supply under the said category shall be given on brand rate basis upon submission of documents evidencing actual payment of basic customs duties.

Conditions for refund of deemed export drawback

Supplies will be eligible for deemed export drawback as per para 7.03 (b) of FTP, as under:

Refund of drawback on the inputs used in manufacture and supply under the said category can be claimed on ‘All Industry Rate’ of Duty Drawback of Revenue from time to time provided no CENVAT credit has been availed by supplier of goods on excisable inputs or on ‘Brand Rate Basis’ upon submission of documents evidencing actual payment of basic custom duties.

[Notification No. 28/2015-2020]


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