FIEO compliments Finance Minister to allow higher Duty Drawback on Self Certification: FIEO President

Posted by Daily Shipping Times on 31-07-2017        Tweet

NEW DELHI: Welcoming the Customs Circular No. 32/2017, Mr Ganesh Kr Gupta, President, FIEO said that asking to furnish a certificate from Tax Authorities stating that exporters will not claim benefits under the new GST regime, if he claims higher Duty Drawback, was causing problems for exporters. Tax authorities were not issuing such certificate and, in its absence, grant of lower drawback was not only affecting the liquidity but also administrative work at exporter’s end.

Mr Gupta said that FIEO took up the matter through Ministry of Commerce & Finance to allow composite Drawback rate on self-certification instead of certificate from GST authorities.

We are delighted that Government has agreed to our logical suggestion and issued Customs Circular providing higher Drawback on Self Certification. This move will save the transaction time and cost for exporters and benefit micro and small exporters of Handicraft, Textiles, Carpets, Engineering etc.

President FIEO also requested exporters to do their own calculation even while claiming higher drawback as they have to forego IGST refund/ITC refund/carry forward of CENVAT credit.