Saturday, April 26, 2008

Centre To Clear Drawback Dues Worth Rs 500 Cr

NEW DELHI: In a month-long drive to honour pending dues, claims of drawback payment worth Rs 500 crore will be examined and cleared in May. These pending claims are the reimbursements made to exporters by the government in lieu of taxes paid on inputs.

Exporters have asked the Central Board of Excise & Customs (CBEC) to honour claims on the basis of proof of shipments made and payments received and not to demand unnecessary documents that lead to delays.

The drawback clearance month is jointly organised by the customs department and the Delhi Exporters Association (DEA). During the month, customs officials dedicatedly worked towards clearing all past claims and making payments.

Exporters, however, say a lot of claims are unduly postponed further when customs officials ask for additional documentary proof of transactions. “Once goods have been shipped and the payments realised, there is no need for Customs to ask for additional documentary proof. Drawback should be given instantly,” said DEA president SP Agarwal.

Mr Agarwal said that CBEC chairman PC Jha agreed to get the issue examined and take appropriate action. Another issue raised by exporters was the absence of a proper mechanism of intimating exporters if their claims were rejected by the Customs for some reason.

“On several occasions, exporters get to know that their claims have been rejected and they are supposed to file supplementary claims only when they enquire about delayed payments.

There is also a risk of the claim lapsing if exporters don’t take action on time,” Mr Agarwal said. DEA has asked CBEC to ensure that intimations of rejections are made in a timely manner.

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