31 May CBIC Implements New Drawback Payment System from June 5, 2024
The CBIC has issued Instruction No. 15/2024-Customs on May 29, 2024, detailing the disbursal of Drawback amounts into exporters’ accounts via the Public Finance Management System (PFMS), effective from June 05, 2024.
Currently, Duty Drawback claims are processed through the Customs Automated System (CAS), listed in a scroll/Computerised Customs Drawback Advice (CCDA), and sent to the Authorised Bank branch with a single consolidated cheque for payment to exporters’ accounts.
However, from June 05, 2024, the payment of Drawback amounts will be facilitated through PFMS. The following procedures will be discontinued:
- Printing of the Drawback scroll for transmission to the Authorised Bank
- Issuance of cheques for the total amount to be disbursed under a scroll
Instead, the new procedure will be as follows:
- An authorised officer at each Customs location will process the Duty Drawback scroll queue.
- The scrolls generated at different locations will be automatically processed by CAS for transmission to the Central Nodal eDDO.
- The central nodal eDDO will forward the consolidated All-India duty drawback scroll to the nodal ePAO.
- After approval from the nodal ePAO, the duty drawback amounts will be credited into the exporters' bank accounts linked with PFMS.
The jurisdictional Principal Chief Commissioners/Chief Commissioners must ensure the following actions are completed before June 05, 2024:
- All Drawback scrolls generated prior to June 05, 2024, should be processed, sent to agency banks, and cheques issued.
- The cheque number of the last cheque issued for Duty Drawback must be communicated to the jurisdictional PAO and the authorised bank, confirming that no future Drawback payments will be made through the bank. If no future payments are to be made via cheque, the cheque books issued for Drawback payments must be returned to the PAO.
- If the same cheque book is used for Customs refund payments and retained for that purpose, this must be noted in the LoP against the cheque issued.
A suitable Trade Notice should be issued to inform trade and staff. Any difficulties in implementing this instruction should be reported to the Board.
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