Interviews
Bank Realisation Certificate Module on Duty Drawbacks
13 Mar '08
3 min read
Drawback is a rebate of duty or tax, as the case may be, chargeable on any imported materials or excisable materials used or taxable services used as input services in the manufacture of export goods.
It is paid to the exporters after export of goods. Under the provisions of Customs Act, 1962 the drawback is to be recovered if the sale proceeds in respect of such export goods are not realized within the time allowed under the Foreign Exchange Management Act, 1999.
Presently, the monitoring of realization of export proceeds in respect of goods exported under the Drawback Scheme is being done on the basis of Export Outstanding Statement (XOS) received from the RBI.
The XOS is a consolidated half-yearly statement giving details of all export bills outstanding beyond the period prescribed for realisation.
However, following the issuance of RBI's instructions dispensing with submission of declarations for export of goods of value not exceeding US $ 25,000 it is observed that a large number of export consignments presently fall outside the purview of monitoring mechanism through XOS in as much as, the shipment details of goods valued upto Rs. 10 lakhs (approx) are no longer reported through this statement.
In view of this, particularly considering that under the statute the drawback payment is ultimately linked to the realisation of export proceeds, it has become necessary for the Department of Revenue to put in place an in-house monitoring mechanism to monitor the realization of proceeds for exports made under the Drawback Scheme.
It is paid to the exporters after export of goods. Under the provisions of Customs Act, 1962 the drawback is to be recovered if the sale proceeds in respect of such export goods are not realized within the time allowed under the Foreign Exchange Management Act, 1999.
Presently, the monitoring of realization of export proceeds in respect of goods exported under the Drawback Scheme is being done on the basis of Export Outstanding Statement (XOS) received from the RBI.
The XOS is a consolidated half-yearly statement giving details of all export bills outstanding beyond the period prescribed for realisation.
However, following the issuance of RBI's instructions dispensing with submission of declarations for export of goods of value not exceeding US $ 25,000 it is observed that a large number of export consignments presently fall outside the purview of monitoring mechanism through XOS in as much as, the shipment details of goods valued upto Rs. 10 lakhs (approx) are no longer reported through this statement.
In view of this, particularly considering that under the statute the drawback payment is ultimately linked to the realisation of export proceeds, it has become necessary for the Department of Revenue to put in place an in-house monitoring mechanism to monitor the realization of proceeds for exports made under the Drawback Scheme.
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