India’s Ministry of Finance has changed the process for disbursing duty drawback to eligible exporters. The new process, which will come into effect on June 5, 2024, will discontinue the present system under which duty drawback claims are processed through the Customs Automated System (CAS), enumerated in a scroll/Computerised Customs Drawback Advice (CCDA), and sent to the authorised bank branch along with a supporting single cheque of the consolidated amount. It is considered that the new process of payment of duty drawback will expedite disbursement.

According to a letter issued by the Ministry’s Department of Revenue, the payment of drawback amounts into exporters' accounts post-scroll out will be facilitated through the Public Finance Management System (PFMS). Consequently, the practice of printing the Drawback scroll and issuing a cheque to the authorised banks for the total amount to be disbursed will be discontinued. Now, the authorised officer at each customs location shall process the duty drawback scroll queue. The scrolls generated at different locations will be automatically processed by the CAS for onward transmission to the Central Nodal eDDO. The nominated central nodal eDDO shall forward the consolidated All India Duty Drawback scroll to the nodal ePAO.

After approval from the nodal ePAO, duty drawback amounts shall be credited into the exporters' bank accounts linked with PFMS. The jurisdictional principal chief commissioners/chief commissioners shall ensure that the drawback sections functioning under their charge complete the following actions before June 5, 2024. All drawback scrolls generated prior to the said date should be processed, duly sent to the agency banks, and cheques issued for the same.

Fibre2Fashion News Desk (KUL)

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