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CIRCULAR NO102/2000-CUS.
Sub:- Eligibility of All Industry Rate (AIR) of Drawback to goods
exported under DFRC Scheme during 1.4.2000 to 31.5.2000- In
terms of the EXIM Policy 2000-2001 announced on 31.3.2000, Duty
Free Replenishment Certificate (DFRC) Scheme had come into
operation with effect from 1.4.2000 and exports made under it
were, interalia, eligible for AIR of Drawback equivalent the
Central Excise duty portion in respect of inputs imported and
cleared on payment of CVD, provided no cenvat was availed.
Circular Nos. 33/2000-Cus dated 2.5.2000 and 42/2000-Cus dated
12.5.2000 refer in this regard. Suitable enabling provision was
also incorporated in General Note 2(b) to Notification No.
41/2000~Custosms (NT) dated 1.6.2000 for this purpose. 2. Doubts have been raised about the eligibility
of AIR to exports made under DFRC Scheme during the period
1.4.2000 to 31.9.2900 because General note 2(b) to the earlier
AIR notification No. 31/99 Customs (NT) dated 205.1999, which
would be applicable to exports effected during the said period,
has not been amended suitably. 3. The issue has been examined in Board. The
primary objective of AIR notification No. 4l/2000-Customs dated
1.6.2000 was to revise the AIR of Drawback with effect from
1.6.2000 on account of revision of duty rates announced in
2000-2001 Budget. Since the DFRC Scheme had come into operation
on 1.4.2000, while announcing the new AIR of Drawback, General
Note 2(b) to the aforesaid notification was also suitably
amended. The intention of the Government was however, to extend
all benefits of DFRC Scheme for exports made under it after
1.4.2000. Simply because General Note 2(b) to the earlier AIR
notification No. 31/99-Customs (NT) dated 31.5.99 was not amended
should not be made a ground for denial of aforesaid benefit to
exports made under DFRC Scheme during 1.4.2000 to 31.5.2000.
4. It is clarified that exports made during
1.4.2000 to 31.5.2000 under DFRC Scheme would be eligible for
AIUR of Drawback equivalent to Central Excise duty portion (on
the CVD paid on imported inputs) at the rates specified in the
table to earlier Notification No. 31/99-Customs (NT) dated
31.5.99 provided no modvat (now cenvat) was availed.
5. This may be brought to the notice of the staff
concerned and the trade by issuing suitable standing order and
Public notice respectively.
Dated 1st Dec. 2000
6. The receipt of
this circular may kindly be acknowledged
7. Hindi version will follow.
(R K Talajia)
Senior Technical Officer