Sub : Facility to claim Deemed Exports Duty Drawback benefits from Regional Licensing authorities in addition to the Development Commissioners.

In the Open House meeting held in Chennai on 16.2.05, one of the EOUs had enquired regarding procedure for claiming the duty drawback in respect of supplies effected toEOUs. In this meeting it was clarified that for such supplies Deemed Exports Duty Drawback benefits can be claimed from Development Commissioner or the Regional Licensing Authority, as per the recent amendment carried out by the DGFT.

For further elaboration of this issue, position is clarified as follows:

1. Prior to 14.1.05, such duty drawback could be claimed only from the Development Commissioners. Paragraph 8.4.1 of Handbook of Procedures Vol.I read as follows:

“In respect of supplies under paragraphs 8.2(b) of the Policy, the DTA unit shall claim the deemed exports benefit from the concerned Development Commissioner except the Advance Licence for deemed export and DFRC. Advance licence for deemed exports and DFRC shall be claimed from the concerned licensing authority. For supplies to EHTP/STP/BTP, the DTA unit shall claim deemed export benefits from the licensing authority concerned. Such supplies shall be certified by the receiving agencies.”

2. 1st sentence of Paragraph 8.4.1 of Handbook of Procedures has been amended vide Public Notice No.44/2004-2009 dated 14.1.05, as follows:

“In respect of supplies under Paragraph 8.2(b) of the Policy, except Advance Licence for deemed exports and DFRC, the deemed export benefits may be claimed from the Development Commissioner or the Licensing Authority concerned”.

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE
PUBLIC NOTICE NO.44 /2004-09

Dated: 14th January, 2005

In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy, 2004-2009, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures (Vol. I):-

1. Sub-para 8.3.1 incorporated vide Public Notice No.32 dated 15th December, 2004 shall be amended as under:-

“8.3.1 Supply of goods will be eligible for refund of Terminal Excise Duty in terms of para 8.3 ( c ) of Policy provided the recipient of the goods does not avail CENVAT credit /rebate on such goods. Similarly, supplies will be eligible for deemed export drawback in terms of para 8.3(b) of Policy on the Central Excise paid on inputs/components, provided CENVAT credit facility/rebate has not been availed by the applicant. However, such supplies will be eligible for deemed export drawback on the customs duty paid on the inputs/components.”

2. The first sentence of sub-para 8.4.1 shall be amended as under:-

“In respect of supplies under paragraph 8.2(b) of the Policy, except Advance Licence for deemed exports and DFRC, the deemed export benefits may be claimed from the Development Commissioner or the Licensing Authority concerned.”

3. At the end of sub-para 8.6(ii), following shall be added.:-

“ In respect of supplies under paragraph 8.2(b) of the Policy where the supplier wants to claim benefits from the licensing authority, the Licensing Authority while allowing deemed export benefits to the DTA supplier, will endorse a copy of the communication to the concerned Development Commissioner along with the details of invoices against which deemed export benefits have been allowed for confirmation of the transaction involved”.

4. Sl. No. A (viii) under the heading “Documents to be enclosed with the application form for refund of Terminal Excise Duty/ Duty Drawback” incorporated vide Public Notice No.32 dated 15th December, 2004 shall be amended as under:-

“(viii ) a. A self declaration of non-availment of CENVAT credit/rebate from the recipient of goods along with the details of the Central Excise Registration No. and the Central Excise Authority, with whom the recipient is registered. In cases, where the recipient is not registered with central excise, a declaration to this effect is to be given by the recipient.

b. A self declaration by the applicant stating that the goods supplied are either not excisable or the goods are excisable but CENVAT/rebate facility is not available to the recipient of the goods.”

This issues in Public Interest.

(K.T.Chacko)
Director General of Foreign Trade

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(Issued from F.No.01/92/180/168/AM04/PC.II)