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INDIAN EXPORTERS CAN CLAIM DRAWBACK BENEFIT OF SAFEGUARD & ANTI-DUMPING DUTY PAID

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SJES211015 Dated: 29th Oct’15

INDIAN EXPORTERS CAN CLAIM DRAWBACK BENEFIT OF SAFEGUARD & ANTI-DUMPING DUTY PAID

INDIAN EXPORTERS CAN CLAIM DRAWBACK BENEFIT OF SAFEGUARD & ANTI-DUMPING DUTY PAID

CBEC by its CIRCULAR NO :23/2015-Customs, Dated: September 29, 2015; has clarified that :

– With respect to Safeguard Duties which are leviable under Section 8B or Section 8C of the Customs Tariff Act, 1975 read with Section 12 of the Customs Act,the Board clarifies that these are rebatable as Drawback in terms of Section 75 of the Customs Act. Since Safeguard Duties are not taken into consideration while fixing All Industry Rates of drawback, the drawback of such Safeguard Duties can be claimed under an application for Brand Rate under Rule 6 or Rule 7 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. This would necessarily mean that drawback shall be admissible only where the inputs which suffered Safeguard Duties were actually used in the goods exported as confirmed by the verification conducted for fixation of Brand Rate.

– Where imported goods subject to Safeguard Duties are exported out of the country as such, then the Drawback payable under Section 74 of the Customs Act would also include the incidence of Safeguard Duties as part of total duties paid, subject to fulfilment of other conditions.

While drawing attention to the Circular No. 106/95-Cus, dated 11.10.1995 regarding refund/claim of Anti-Dumping Duty leviable under Section 9A of the Custom Tariff Act, 1975 as Duty Drawback,which clarified as follows:

Anti-Dumping Duty which is leviable under Section 9A of the Customs Tariff Act read with Section 12 of the Customs Act is rebatable as Drawback in terms of Section 75 of the Customs Act. Since Anti-Dumping Duty is not taken into consideration while fixing All Industry rate of drawback, the drawback of such Anti-Dumping Duty can only be claimed under an application for Brand Rate under rule 6 or rule 7 of the Customs and Central Excises Duties Drawback Rules, 1995. This would necessarily mean that drawback shall be admissible only where the inputs which suffered Anti-Dumping Duty were actually used in the goods exported as confirmed by the verification conducted for fixation of Brand Rate. Where imported goods subject to anti-dumping duties were exported out of the county as such, them the Drawback payable U/S 74 would also include the incidence of Anti-Dumping duties as part of total duties paid.

Source: Min of Commerce, Govt. of India

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