Context:
The Central Board of Indirect Taxes and Customs (CBIC) recently started automatic electronic payment of duty drawback amounts directly into exporters’ bank accounts.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- About Duty Drawback Scheme
- Key Facts about Central Board of Indirect Taxes and Customs (CBIC)
About Duty Drawback Scheme
- Administration:
- Managed by the Central Board of Indirect Taxes and Customs (CBIC) to support exports.
- Function:
- Rebates Customs and Central Excise duties on imported and excisable materials used as inputs for export goods.
- Legal Framework:
- Governed under the Customs Act, 1962.
- WTO Compliance:
- Ensures exports are zero-rated, avoiding the burden of specified taxes.
- Purpose:
- Assists exporters in offsetting costs incurred during the export process, especially within the supply or value chain.
- Eligible Goods:
- To export goods imported into India
- To export goods imported into India after having been taken for use
- To export goods manufactured/produced out of imported material
- To export goods manufactured/produced out of indigenous material
- To export goods manufactured /produced out of imported or indigenous materials.
- Claim Criteria:
- Claimant must be the legal owner of the goods at the time of export.
- Customs duty on imported goods must have been paid.
- Applicable to most goods where customs duty was paid upon importation and subsequently exported.
Key Facts about Central Board of Indirect Taxes and Customs (CBIC)
- Affiliation:
- A part of the Department of Revenue under the Ministry of Finance, Government of India.
- Responsibilities:
- Oversees all indirect tax-related matters in India.
- Formulates policy for the levy and collection of Customs duties, Central Excise duties, Central Goods & Services Tax (CGST), and Integrated Goods & Services Tax (IGST).
- Manages the prevention of smuggling and the administration of Customs, Central Excise, CGST, IGST, and narcotics.
- Structure:
- Acts as the administrative authority for its subordinate organizations, including Custom Houses, Central Excise and Central GST Commissionerates, and the Central Revenues Control Laboratory.
- Compliance and Collection:
- Ensures that taxes on foreign and inland travel are administered in accordance with the law.
- Guarantees that the collection agencies deposit collected taxes to the public exchequer promptly.
-Source: The Hindu
