Govt eases duty drawback scheme for exporters

NEW DELHI: In an effort to boost exports, the government on Thursday modified the procedures on duty drawback schemes of exporters based on the Kelkar panel''s suggestions.
According to the new procedures announced by the Finance Ministry, merchant exporters who get their export goods made from a supporting manufacturer, which is not registered with the Central Excise, can get the duty rebate by merely filing a declaration that Cenvat facility has not been availed by the supporting manufacturer.
"Exporters of composite articles shall be allowed duty drawback on the strength of a declaration as to composition of various constituent materials," an official said.
The ministry would also allow exporters, who apply for fixation of brand rate of drawback owing to inadequate compensation through the all industry rates, shall also be allowed to price their products at the latter rate.
The exporters would get the different drawbacks after fixation of the brand rate.
Another major step to assist exporters was by providing a mechanism of fixation of brand rate of drawback at the doorsteps of exporters.
From April, the brand rates of drawback would be fixed by commissioners of Central Excise in whose jurisdiction the factory of the manufacturer or the supporting manufacturer is located. "This shall obviate the delays involve in correspondence and postal transit," the ministry said.
As duty drawback is a rebate of input stage duties for customs and excise, which makes Indian goods competitive in international market, the ministry said "it is an important promotion measure contributing to the export led growth of the economy and accretion of precious foreign exchange�.