Page 137 - COMBINED QUESTIONS AND ANSWERS - EDITION 2019 - PART II_Neat

Q-527: Explain the PFMS rejected on Drawback claim
A-527: The exporters have submitted incorrect data in the PFMS regarding their bank
account details. Hence, due to mismatch of the data in the ICEGATE and PFMS their
drawback claims lie pending as PFMS rejected.
The exporter to amend their Bank Account details in the PFMS so that payment of
their drawback claims may be processed.
The exporters may approach Assistant Commissioner of Customs, DBK Refund
Section for amending the same.
Q-528: What are the conditions to be required to claim the Duty Drawback?
A-528: The following conditions to be required to claim the Duty Drawback
(i) The goods on which drawback is claimed must have been previously imported;
(ii) Import duty must have been paid on these goods when they were imported;
(iii) The goods should be entered for export within two years from the date of payment
of duty on their importation (whether provisional or final duty). The period can be
further extended to three years by the Commissioner of Customs on sufficient cause
being shown.
(iv) The goods are identified as the goods imported.
(v) The goods must be capable of being identified as imported goods.
(vi) The goods must actually be re-exported to any place outside India.
(vii) The market price of such goods must not be less than the amount of drawback
claimed.
(viii) The amount of drawback should not be less than Rs. 50/- as per Section 76-(1) (c) of
the Customs Act.
Q-529: Explain the duty drawback is not admissible with its legal provisions
A-529: (i) When export goods after their manufacture were taken for use. It means when
export goods are found to be used, the drawback cannot be allowed. To deny
drawback in such case power can be traced to second proviso to Rule 3 of Drawback
Rules, 2017.
(ii) When goods are manufactured for export, using taxable indigenous or imported
exempted material in respect of which taxes/duties have not been and it will obviate
double benefit.
(iii) When export value of the goods or class of goods is less than the value of imported
material used in the manufacture of such export goods. The negative valued
addition has not been envisaged by the policy maker. Rule 8(2) of Drawback Rules
2017.
(iv) When the amount of drawback is less than Rs 50/- Section 76(1)(c) of the Customs
Act, 1962.
(v) Market price of the export goods is less than the amount of drawback due thereon.
Refer Section 76(1) (b) of the Customs Act, 1962.
(vi) When the product is manufactured partly or wholly in Bond under Section 65 of the
Customs Act, 1962 then the grant of drawback is not possible, as goods are made
from duty free inputs.
Q-530: Explain briefly the provisions relating to drawback allowable on re-export of duty paid
imported goods when:
(i) Duty paid imported goods are re-exported as such

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