Duty Drawback and Brand Rate Fixation
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DGFT HQ, New Delhi
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Custom Related Services
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- Refund under Section 74.
- Pending Duty Drawback from Customs.
- Factory stuffing– Self-sealing permission. [FSP]
- Pending IGST Refund from Customs.
- Removal of IEC from the Alert list of Customs.
- GST Services – Refund of ITC from GST.
- Authorized Economic Operator (AEO T1, T2 & T3) certification.
- Reply & Follow-up of Customs Notices if any.
- GST Services – Refund of GST for Service Exporters.
- AD Code/IFSC Registration.
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Find our brochure for more details:
Table of Contents
Brand Rate Fixation of Duty Drawback: Meaning, Process & Benefits – Afleo
- An Overview
- Latest Updates
- Duties Exempted under DFIA Scheme
- Eligibility under DFIA Scheme
- Minimum Value Addition under Duty Free import Authorisation scheme
- DFIA Scheme Procedure – Steps to be followed for Duty Free import Authorisation scheme
- Validity & Transferability of DFIA
- How we can assist you for DFIA scheme?
- Why Afleo Consultants?
- FAQ’s
Exporters usually face difficulties when the normal rate of duty drawback does not completely compensate for the customs or excise duties they have paid on imported raw material. In such a situation, the Brand Rate Fixation method is implemented, enabling exporters to claim actual duty refunds based on their products and production processes.
Afleo Group, one of the top export incentive and customs consultancy firms, has expertise in advising exporters to successfully obtain Brand Rate Fixation of Duty Drawback for maximum refund and adherence to CBIC guidelines.
Knowledge about Duty Drawback and Brand Rate Fixation
What is Duty Drawback?
The Duty Drawback Scheme is an Indian Customs export incentive under which the customs and excise duty paid on indigenous or imported inputs utilized in the production of exported goods is refunded. In short, it prevents exporters from being saddled with local taxes on products destined for foreign markets.
Duty Drawback functions through two main mechanisms:
- All Industry Rate (AIR): Pre-notified standard rate by CBIC on frequently exported goods.
- Brand Rate: A reserved rate specified for an individual exporter or product in case AIR is not operative or inadequate.
What is Brand Rate Fixation?
Brand Rate Fixation is an individualized refund rate specified for a certain exporter or product. It is used where:
- The supplied product falls outside the All Industry Rate (AIR) schedule, or
- The incidence of duty on inputs is greater than the AIR.
The Brand Rate is determined on the basis of duty paid on imported or domestic inputs utilized in the production of exported items. It provides exporters with a fair and correct refund equivalent to their particular burden of duty.
Eligibility Criteria for Brand Rate Fixation
For exporters to be eligible for Brand Rate Fixation, they should have the following conditions met:
- Customs or excise duty should have been really paid against imported or indigenous inputs.
- The product should be exported under genuine shipping bills with claim of duty drawback under codes 9801 or 9807.
- The amount of All Industry Rate of Drawback should be less than the 4/5th of the Brand Rate of Drawback amount.
- Application for fixation should be made within 3 months from the date of the Let Export Order (LEO), extendable up to 1 year with valid reason.
Documents Needed for Brand Rate Fixation
Exports need to provide corroborative and detailed documents while applying for Brand Rate Fixation, such as:
- Copy of Export Invoices and Shipping Bills
- Bill of Entry or import documents disclosing actual payment of duty
- Input-Output Data Sheet (IODS) certified by a Chartered Engineer
- Manufacturing Process Flow Chart
- Evidence of Duty Payment on imported as well as local inputs
- Bank Realisation Certificate (BRC) evidencing export proceeds
Precise documents guarantee hassle-free and timely approval.
Step-by-Step Procedure for Brand Rate Fixation
Step 1 – Prepare and Submit Application
The exporter files a comprehensive application with the concerned jurisdictional Commissionerate. For Example if the shipping bill is filed in JNPT then the application should be made to JNPT Commissioner of Customs, Brand Rate Unit. Also if the exporter has shipping bills from two or more ports, then the exporter can select the easiest port for making application.
The application is supported by all relevant documents, proof of payment of duty, and technical information.
Step 2 – Verification of Data
Authorities review the application to ensure:
- Input-output ratios
- Consumption norms
- Manufacturing process
- Actual incidence of duty
Any defects or lapses may cause a delay in processing.
Step 3 – Fixation of Brand Rate
Upon confirmation, the Customs authority fixes the Brand Rate on the basis of actual data and informs the exporter of the approved rate.
Step 4 – Claim Duty Drawback
Once fixed, exporters can claim duty drawback using the approved Brand Rate for subsequent shipments of the same goods. Brand rate can be fixed shipment wise or can be fixed for 1 year for one particular product & quantity.
You can refer to our detailed guide on how to check Duty Drawback status online for step-by-step instructions.
Timelines and Validity
- Applications should be made within 3 months from the Let Export Order (LEO) date.
- The Brand Rate Fixation once accepted is effective for a period of one financial year, or until the change in composition of the product or process occurs.
- It is possible to accept late submissions up to 1 year from LEO Date with suitable reason and permission from the higher authority.
Common Problems in Brand Rate Fixation Applications
Exporters frequently experience delays or rejections on account of procedural or documentation issues, including:
- Late filing or incomplete documentation
- Missing or erroneous duty payment details
- Input-output norm errors
- Mismatch of import and export data
- Lack of Chartered Engineer certification
Afleo’s team prevents clients from facing these problems by providing 100% accurate and compliant applications.
Afleo’s Expertise in Brand Rate Fixation
We know at Afleo Group that complying with customs procedures and documentation can be daunting. Our expert team is Duty Drawback and Brand Rate Fixation specialists, providing end-to-end solutions from scratch.
Our services are:
- Preparation of technical data sheets and process documentation
- Liaison with Customs officials
- Proper input-output mapping and duty analysis
- Follow-up in regular intervals until refund credit is obtained
With experience spanning various industries – engineering goods, textiles, chemicals, pharma, and more, Afleo ensures that exporters get the maximum drawback refund eligible.
Need assistance in Brand Rate Fixation of Duty Drawback?
Afleo can take care of your entire process from application preparation to Customs approval, ensuring smooth, compliant, and time-bound results.
Advantages of Seeking Brand Rate Fixation
- Increased Refunds: Recover real duty refunds, not mere standard rates.
- Equitable Remuneration: Recover the entire amount of duties paid on inputs.
- Enhanced Profitability: Enhance export competitiveness by reducing costs.
- Product-Specific Precision: Rates as per your specific manufacturing procedure.
FAQ’s
1. What is the distinction between All Industry Rate and Brand Rate?
AIR is a general rate notified by CBIC for generic products and Brand Rate is tailored to specific exporters based on actual paid duty.
2. Who can apply for fixing the Brand Rate?
Any exporter who pays customs or excise duties on inputs and feels AIR is inadequate or not available can apply.
3. How many days would it take to fix the Brand Rate?
The process usually takes 2–3 months based on completeness of documentation and Customs processing.
4. Is there an expiry date for the accepted Brand Rate?
Yes. The fixed Brand Rate is valid for a period of one financial year or the time when the manufacturing process alters.
5. Does Afleo help with preparation of application and documentation?
Yes. Afleo offers end-to-end support, from data preparation to Customs coordination and refund follow-up.
Reach out to Afleo for Expert Support
Brand Rate Fixation is a valuable mechanism for exporters seeking to recover actual duties paid and improve profitability. However, the process requires technical expertise, precise documentation, and coordination with Customs.
Afleo Group simplifies this journey with its proven track record and industry experience. From compiling data to securing Customs approval, Afleo ensures every step is handled efficiently and accurately.
Ready to maximize your Duty Drawback refunds?
Apply for Brand Rate Fixation with Afleo today.