Pharmaceutical Export Promotion Council of India (Pharmexcil) has asked the pharmaceutical exporters to submit drawback data for fixation of duty drawback rates for their products/services for the year 2012-13. The exercise for fixation of All Industry Rates (AIR) has been initiated by Central revenue department. Members who are interested in revising the rates of Duty Drawback for their products should submit the data at the earliest.
Earlier, the members were asked to submit their data by April 20, 2012 but the deadline has been extended to May 25 in the interest of exporters. As intimated earlier to the members, the Pharmexcil had asked all the members to submit the duty drawback data at the earliest so that it will enable the government to fix the duty drawback rate for the year 2012-13.
A few days back the Drawback Committee under the Chairmanship of Dr Saumitra Chaudhuri, member Planning Commission and chairman invited Pharmexcil to make a presentation before it.
“During the meeting the Committee had requested Pharmexcil to submit list of products not specifically covered under the Duty Drawback Schedule and which then fall under "Others" category of bulk drugs and formulations falling under Chapters 29 and 30 and thus attract drawback rates of one per cent and two per cent respectively. In addition, the Drawback Committee also sought any modifications required as regards description of Export Products appearing in the Schedule so as to widen the scope of applicability to the same export product having different pack size and strengths,” said Dr P V Appaji, Director General, Pharmexcil.
The exercise for All Industry Rates (AIR) of duty drawbacks will be conducted every year. Even for this year, the members should submit the data to enable the central revenue department fix the duty drawback rates for the year 2012-13.
In fact AIR are worked out considering the consumption of input materials/services and incidences of customs and central excise duties and service tax on these input materials. In view of this, the members are requested to provide comprehensive cost and consumption data for the period October-December-2011 with respect to the inputs/services which are used in manufacturing of exports products.
“We are requesting all our members to take not of this and urgently submit their available data which we will further be forwarded to the duty drawback committee for the fixation of the rates,” said Appaji.
Accordingly members are required to furnish the data in the prescribed formats by May 25. It is only in the interest of the member to get a higher rate of drawback fixed instead of the applicable one per cent (or two per cent), provided it can be justified.