All Industry Rates

• The rates of drawback are announced by the Govt. of India, Ministry of Finance for various categories of goods and are indicated in the schedule appended to the Customs and Central Excise Duties Drawback Rules, 1995.
• The schedule of rates is normally announced on the 1st of June every year or 3 months after the budget. The rates mentioned in the schedule are called all-industry rates of drawback. They are applicable to manufacturer exporters as well as merchant exporters.
• The all industry rates of drawback are fixed under Rule 3 and can be revised by the Govt. under Rule 4. The all industry rates of drawback are worked out on the basis of broad averages of consumption of inputs, duties suffered, quantity of wastage, f.o.b. prices of the export products etc.

Except where specifically authorised the all – industry rates of drawback are not applicable where an export product has been-

1. exported in discharge of export obligation against an Advance Licence issued under Duty Exemption Scheme vide the relevant Import and Export Policy.
2. manufactured partly or wholly in bond under Section 65 of the Customs Act, 1962,
3. exported by a unit licensed under any 100% Export Oriented Schemes (100%EOY/EHTP/STP/Agriculture/aqua culture etc)
4. exported by a Unit situated in a Free trade zone/ Export processing Zones
5. manufactured and exported in terms of Rule 12(1) (a) of the Central of the Central Excise Rules 1944; and
6. manufactured and exported in terms of Rule 13(1) (a) of the Central Excises Rules, 1944; and
7. manufactured and exported availing the facility under the Import and Export Pass Book schemes of he relevant Exim policy

The restrictions as mentioned in the above clauses are not applicable where payment of drawback at a particular rate/amount has been specifically authorised thereunder any sub serial number in the All industry table subject to such terms and conditions as may be specified thereunder.

Brand Rates

• If any category of goods all industry rates is not available, the exporter can approach the Directorate of Drawback for fixation brand rates.
• Brand rates are fixed under Rule 6 for specific manufacturer exporter. Even if all industry rates are available for the produce and if the manufacturer desires to have higher rates of drawback because of higher duty paid inputs, such manufacturer can apply for special brand rates under Rule 7.
• For fixation of Brand rates, the manufacturer has to submit the application to Directorate of Drawback within 30 days of their first shipment. The application and data in duplicate should be submitted to the Ministry with copies to the concerned Central Excise Commissionerate or the Custom House.
• The brand rates are fixed by the Commissioner Drawback on the basis of report sent by the jurisdictional Commissionerate after verification of data submitted by the manufacturer exporter.
• The rates fixed under all industry categories in most cases are percentage of fob value of goods. If the pricing of goods is on CIF basis, the insurance and freight bills are required be produced to arrive at the fob value.
• The rates are operative in terms of Section 16 read with Section 51 of the Customs Act. That is the crucial date for application of the rate of drawback in force is the date of let export order given by the appraiser. The all industry rates of drawback are payable subject to restriction and prohibitions mentioned in the General Notes to the Drawback Schedule.