DGFT alters the deemed export drawback refund rate

The Director General of Foreign Trade vide(DGFT) notification dated 31 October, 2019 has amended the Chapter 7 of Foreign Trade Policy 2015-20 which deals with Deemed Export Drawback to alter the rate of refund of drawback.

The provision dealing with conditions for refund of Deemed Export Drawback has been altered. The provision provided that refund can be claimed for inputs used in manufacture and supply of goods under the given category( Supply of goods under categories mentioned in the policy, (a) to (d) by a manufacturer and categories (e) to (h) by main / sub-contractors shall be regarded as “Deemed Exports”) by suppliers by submitting the documents evidencing actual payment of basic customs duties. The prior provision provided that the refund can be claimed in the Brand Rate Basis only. The provision is altered to give an option to the suppliers who haven’t availed CENVAT credit to claim the refund in All Industry Rate of Duty Drawback Schedule notified from time to time by Department of Revenue. Otherwise it can be claimed in the Brand rate basis as well.

The same shall come to force from 5th December 2017.

Click here to read the Notification