Services
Duty Drawback / Refunds
Duty Drawback was introduced by the Ministry of Finance to refund the duties paid on imported materials used in production of export goods.
The motive
There are cases in which certain imported goods and materials are used to produce or enhance
The Act
The section 74 and 75 of Customs Act, 1962 allows the Central Government to grant up to 98% refund for re-exported goods within two years of import duty payment.
The drawback amount is granted only after thorough scrutiny by the Deputy Commissioner of Customs. The percentage of drawback depends on the usage of imported goods. This rate will be fixed by the government depending on factors like depreciation value, duration and other miscellaneous circumstances.
AFS Touch
Duty Drawback is a golden opportunity that no eligible business should miss!
In the Indian duty drawback consultancy, it is safe to say we are the front-runners. With our robust software systems and vigilant experts we do every possible thing to get what our clients deserve:
Visionary Audits that ensure compliance to all relevant provisions, rules and regulations and accesing Bills of Entry (Bs.E)/ Shipping Bills
Bond Management:
Bond Finalization
Bond Cancellation
Complete Audit Report Filings
GST Services and GST Refund Consultants
Goods and Services Tax is an indirect tax levied on goods and services that are consumed within the country. It eliminates other indirects barring few exceptions. It is a destination-based tax.
AFS deals with all kinds of GST services: Tax registrations, return filing services, or custom built GST entities for your business. AFS is the best for professional GST compliance services in India.
Since GST is applicable only within the country, global businesses that run within have an opportunity to claim GST refunds under certain circumstances.
Operating at international level businesses should have the capability to leverage the and recoup the impact of GST. Since the laws involved are complex and elaborate, it is impossible without experts. AFS members, having years of experience and understanding in how the indirect taxes work can help to get the refund services.
Right Strategy, Right Talent, Best Results. So, leave it to our GST experts.
GST Services and GST Refund Consultants
The GST regime mandates businesses to stay compliant with GST rules and regulations issued by the GST Council.
The government gives GST Compliance Rating for all the registered taxpayers and businesses based on the degree of compliance. Higher rating shall have well-perceived effects on the businesses; it would be easier to gain the trust of consumers, vendors and stakeholders.
Being non-compliant or one with a poor track record may have a negative effect on the individuals and businesses leading to disruption of profit, credibility and supply chain. Many companies are yet to embrace the right process.
AFS helps companies and registered individuals to be GST compliant by:
- Obtain GST Registration by determining the status and eligibility of clients under GST schemeS
- Assisting in timely completion of procedures
- Assessing the accounting data of clients and validate compliance to latest GST regulations
- Organising all the transactions with the correct HSN/ SAC code and tax rate
- Issue and review GST invoices, credit and debit notes, bill of supply, etc that are subjected to GST ruleS
- Identication of naturd of services of the clients and assessing the impact of GST laws on business transactions. Thus, provide tailor made solutions.
- Identification of Input Tax Credit related invoices.
- GST liability payment.
- Periodic reminders to check ledgers and outstanding tax payments; monthly notifications and updates related notices issued by GST Council
GST Refund
GST Refunds can be claimed when an amount more than actual GST liability is paid. The process of claiming refund is standardised with process and deadlines.
Eligible cases for GST Refund
- Exports dealers of goods and services ( including deemed ones)
- Input Credit Accumulation (ITC)
- Pre deposit refund
- Finalization of provisional assessment
- Buys made by Embassies and UN bodies
- Error related excess payments
- Refund of SGST and CGST in interstate trade
AFS provides worthy GST Refund services for businesses.
- Validate eligibility for refund
- Discuss and collect necessary documents for refund claims
- Preparation and filing for unutilized ITC, LUT and IGST
- Up to date continuance with the concerned authority for Finalization
- Timely updates and notifications for filing, accumulation and other processes
GST Filing
We provide finest and punctual GST filing services. Filing processes shall become hassle free with us. With our robust systems ensure that all the bills and returns are filed on time. Apart detailed summary and insights on the filings will also be shared with the clients.
Export Services
- Inverted duty structure refund
- Drawback brand rate fixation & Realization,
- SEIS incentive
- RoDTEP (MEIS)SVB Finalization
- Bond Cancellation
- Under protest refund
- Double duty refund
- Bill of entry Finalization
“PROFIT IS NOT SOMETHING TO ADD ON AT THE END, IT IS SOMETHING TO PLAN IN THE BEGINNING“
SAD Refund
- Special Additional Duty is a counter to VAT or sales tax if the goods are manufactured in India.
- Special Additional Duty (SAD) is taxable under the subsection 5 of Section 3 of the Customs Tariff Act, 1975. The rate of charge is 4% on the goods imported into India.
- This amount is levied on the total value of imports including CIF + Basic Customs duty + CVD.
- The amount is refundable to import traders who have sold the goods in India without modification of the same.
- This refund should be claimed within a year of paying the Special Additional Duty which is the TR6 challan of BOE.
AFS helps clients with filing of documents, checking the internal accounts and reports for consistency and correlation for claiming SAD refund. The subject is highly comprehensive. Since we have versatile experts with years of experience, we are able offer quality services:
- Understanding the business, sales and eligibility of a company
- Collecting and validation documents, invoices, and other papers that are required for claiming the refund
- Filing the documents
- Staying in touch with the require authorities
- Consultancy and support
Speak to our experts to know if you can claim SAD refunds or know more…
AEO Certificate
Authorised Economic Operator is a business entity which is in compliant with safety framework of the national customs and hence the World Customs Organization (WCO)
In July of 2016 a revised AEO Program was launched combined with both AEO and ACP (Accredited Clients Program) into a single program.
What AEO certificate?
- Identifies business entities that are compliant with the global supply safety and standards, practices reliable supply chain
- Provides incentives, benefits including easy flow of supply chain, movement of goods, and other such benefits
AEO program is a three-tier program. The tiers are: AEO-T1, T2 and T3. This is for importers and exporters. For the others involved in the logistics there
A is a single tier programme called the AEO-LO programme. T1, T2, have 3 years validity whereas T3 and LO have 5 year validity.
We help companies with procuring AEO certificate, getting compliance with different tiers and other consultancy services in reference with AEO.
SVB Finalization
Indian businesses that import goods from partners located outside India have to undergo a procedure called the Special Valuation Branch or the SVB process. It is a division of customs that investigates transaction, relationship and other traits established between importer and the partner.
The SVB assesses:
- Transaction and deductive value of identical goods sold to unrelated buyers within the country
- Collaboration Agreements or JV agreements to find whether they had an impact on invoice value.
Importers who are related suppliers under Rule 2(2) of Custom Valuation Act 1988.
Based on replies to questionnaires along with furnished documents, SVB substantiates and issues the result of provisional assessment.
The procedures followed under SVB Customs clearance are highly complex and time consuming. We offer high quality services from inception to end and help them achieve the clearance.
Accordion Title
Service Export From India Scheme (SEIS) is a scheme by the Government of India to promote exports of Indian goods and services. Under this scheme Indian businesses that meet the eligibility criteria and other requirements shall be eligible to freely transferable duty scrip credits; this can also be subjected to duty drawback benefits.
The duty credit scrip shall be valid for a period of 24 months.
Rate of incentive varies as 3%, 5% or 7%
Eligibility
1.Service Providers or business entities must be located in India
- The company should have a minimum net free foreign exchange of worth $ 15000 in the previous financial year
- For individual service providers or proprietorships the minimum net foreign exchange earning should be atleast $10,000 in the previous financial year
- The companies must have an active Import Export Code (IE Code) at the time of availing the SEIS scheme.
Who are the eligible?
Several domains of companies/ service providers are eligible for the SEIS scheme. The domains are:
Professional Services :
- Legal services, finance and taxation, architectural,engineers, intergrated engineering, construction engineering and landscape planning services
- Healthcare: Medical, veterinary, dental, nurses, physiotherapists and paramedical personnels, midwives, nurses
- Research and Development
- Leasing or Rental providers
- Audiovisual
- Educational, environmental, social services
- Travel and tourism, transportation/ cargo & auxiliary Services
- Recreational, cultural or sports
- Advertising services
- Market research
- Consultation and related
- Technical/ scientific testing, analysis or consultancy
- Agricultural, mining, forestry fishing, energy services
- Personnel suppliers
- Security, build-cleaning, maintenance and repair
- Print, publishing, convention, photography.
[TABS_R id=1273]
Duty Drawback
There are cases in which certain imported goods and materials are used to produce or enhance
| The term drawback is applied to a certain amount of duties of Customs and Central Excise, sometimes the whole, sometimes only a part remitted or paid by Government on the exportation of the commodities on which they were levied. To entitle goods to drawback, they must be exported to a foreign port, the object of the relief afforded by the drawback being to enable the goods to be disposed of in the foreign market as if they had never been taxed at all. For Customs purpose drawback means the refund of duty of customs and duty of central excise that are chargeable on imported and indigenous materials used in the manufacture of exported goods. Goods eligible for drawback applies to a) Export goods imported into India as such; b) Export goods imported into India after having been taken for use c) Export goods manufactured / produced out of imported material d) Export goods manufactured / produced out of indigenous material e) Export goods manufactured /produced out of imported or and indigenous materials. The Duty Drawback is of two types: (i) All Industry Rate (AIR) and (ii) Brand Rate. |
| It is essentially an average rate based on the average quantity and value of inputs and duties (both Excise & Customs) borne by them and Service Tax suffered by a particular export product. The All Industry Rates are notified by the Government in the form of a Drawback Schedule every year and the present Schedule covers 2837 entries. The legal framework in this regard is provided under Sections 75 and 76 of the Customs Act, 1962 and the Customs and Central Excise Duties and Service Tax Drawback Rules, 1995. The All Industry Rate (AIR) of Duty Drawback are notified for a large number of export products every year by the Government after an assessment of average incidence of Customs, Central Excise duties and Service Tax suffered by the export products. The All Industry Rate (AIR) are fixed after extensive discussions with all stake holders viz. Export Promotion Councils, Trade Associations, and individual exporters to solicit relevant data, which includes the data on procurement prices of inputs, indigenous as well as imported, applicable duty rates, consumption ratios and FOB values of export products. Corroborating data is also collected from Central Excise and Customs field formations. This data is analysed and forms the basis for the All Industry Rate (AIR) of Duty Drawback. The All Industry Rate (AIR) of Duty Drawback is generally fixed as a percentage of FOB price of export product. Caps have been imposed in respect of many export products in order to obviate the possibility of misuse by unscrupulous exporters through over invoicing of the export value. The scrutiny, sanction and payment of Duty Drawback claims in major Custom Houses is done through the EDI system. The EDI system facilitates credit/disbursal of Drawback directly to the exporter’s bank accounts once the EGM has been filed by respective airlines / shipping lines. The correct filing of EGM is essential for speedy processing and disbursal of Drawback claims. Notification No. 84/2010-Cus (N.T.), dated 17-9-2010 is relevant for ascertaining the current All Industry Rate (AIR) of Duty Drawback for various export products. |
| It is allowed in cases where the export product does not have any AIR of Duty Drawback or the same neutralizes less than 4/5th of the duties paid on materials used in the manufacture of export goods. This work is handled by the jurisdictional Commissioners of Customs & Central Excise. Exporters who wish to avail of the Brand Rate of Duty Drawback need to apply for fixation of the rate for their export goods to the jurisdictional Central Excise Commissionerate. The Brand Rate of Duty Drawback is granted in terms of Rules 6 and 7 of the Drawback Rules, 1995. Where the export product has not been notified in All Industry Rate (AIR) of Duty Drawback or where the exporter considers the All Industry Rate (AIR) of Duty Drawback insufficient to fully neutralize the duties suffered by his export product, he may opt for the Brand Rate of Duty Drawback. Under this scheme, the exporters are compensated by paying the amount of Customs, Central Excise duties and Service Tax incidence actually incurred by the export product. For this purpose, the exporter has to produce documents/proof about the actual quantity of inputs / services utilized in the manufacture of export product along with evidence of payment of duties thereon. The exporter has to make an application to the Commissioner having jurisdiction over the manufacturing unit, within 3 months from the date of the ‘Let Export’ order. The application should include details of materials/components/input services used in the manufacture of goods and the duties/taxes paid on such materials/ components/input services. The period of 3 months can be extended up to 12 months subject to conditions and payment of requisite fee as provided in the Drawback Rules, 1995. In terms of Rule 6 of the Drawback Rules, 1995 on receipt of the Brand Rate application, the jurisdictional Commissioner shall verify the details furnished by the exporter and determine the amount/rate of Drawback. Where exporter desires that he may be granted Drawback provisionally, the jurisdictional Commissioner may determine the same, provided the exporter executes a general bond, binding himself to refund the Drawback amount granted to him, if it is found later that the Duty Drawback was either not admissible to him or a lower amount was payable. The Brand Rate letter is thereafter issued to the exporter. The Custom House of the port of export is also given a copy to facilitate payment of Drawback to the exporter. |
| The Duty Drawback facility on export of duty paid imported goods is available in terms of Sec. 74 (It is discussed in more detail in under mention para) of the Customs Act, 1962. Under this scheme part of the Customs duty paid at the time of import is remitted on export of the imported goods, subject to their identification and adherence to the prescribed procedure. in case of goods which were earlier imported on the payment of duty and are later sought to be exported within a specified period, Customs Duty paid at the time of import of the goods, with certain cuts, can be claimed as Duty Drawback at the time of export of such goods. Such Duty Drawback is granted in terms of Sec. 74 of the Customs Act, 1962 read with Re-export of Imported Goods (Drawback of Customs Duty) Rules, 1995. For this purpose, the identity of export goods is cross verified with the particulars furnished at the time of import of such goods. Where the goods are not put into use after import, 98% of Duty Drawback is admissible under Sec. 74 of the Customs Act, 1962. In cases the goods have been put into use after import, Duty Drawback is granted on a sliding scale basis depending upon the extent of use of the goods. No Duty Drawback is available if the goods are exported 18 months after import. Application for Duty Drawback is required to be made within 3 months from the date of export of goods, which can be extended up to 12 months subject to conditions and payment of requisite fee as provided in the Drawback Rules, 1995. |
| Under Brand Rate of Duty Drawback Scheme, a “Simplified Scheme” is also available to limited companies and registered partnership firms. Under this Scheme, a rate letter for duty drawback is issued prior to receipt of verification report from the jurisdictional Central Excise Authorities on the basis of application made by the exporter subject to certain certification etc. For this purpose, besides application in the prescribed format along with enclosures, the exporter is also required to submit Chartered Accountant/Chartered Engineer’s certificate about the authenticity of consumption pattern and duty payments as claimed. An indemnity bond undertaking to pay back the duty drawback being claimed by him if it is found later on verification that the drawback amount paid to him is in excess of the admissible amount, has also to be furnished. In all cases where duty drawback is paid under Simplified Scheme, after receipt of the verification report from jurisdictional Central Excise Authority, the veracity of the application is counter checked with the said verification report and recovery action taken, where ever found necessary. |
| As per circular No.14/2003 dated 06.03.2003, Sometimes, various components/ vendor items of the export goods, like those in the Automobile Industry are manufactured in the jurisdictions of more than one Central Excise Commissionerate. In such cases, Brand Rate application is required to be filed within the stipulated period in the Headquarters of Central Excise Commissionerate having jurisdiction over the manufacturing unit wherein the finished/ final export goods are manufactured/ assembled. In such cases, the applicant is required to specify the components/ vendor items which are manufactured in the jurisdiction of other Central Excise Commissionerates and submit the requisite data subsequently in the Headquarters of the concerned Commissionerates of Central Excise having jurisdiction over the units wherein such components/ vendor items are manufactured. The Commissionerate in which the original Brand Rate application has been filed will get the data (pertaining to its Commissionerate) furnished in the application verified and fix the Brand Rate. This Brand Rate may be subsequently revised on the receipt of the Verification Reports in respect of the components/ vendor items from the concerned Central Excise Commissionerates. In the subject claim the Brand rate was filed within the stipulated time. |
Required Documents:
- Shipping Bill
- Bill of Entry
- Bill of Materials
- BRC
- DBK Statement
- DBK Application
- CA certificate
- CE Certificate
Verification: – Verify the claim in concern jurisdiction office, company visit, getting the verification Report. Fixation: Fixation: -Getting the Brand Rate letter In Brand Rate Fixation Cell. Realization: – Processing the Shipping Bill in Drawback Department. |
| Claim need to file without fine 3 month with fine 1 year our processing time 60 days |
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