What is Brand Rate in Duty Drawback

Posted on 08 April 2023     Category : Export incentives and benefits

The information provided here is part of Import Export Training course online

 

What is Brand Rate in Duty Drawback?

 

What is Brand rate? How many types of brand rates? How to apply for brand rate?

 

What is brand rate?

Brand rate of draw back is falling under two categories. Firstly, the exporter’s product has not been listed in the Duty draw back schedule. Secondly, the exporter considers the listed rate of draw back is insufficient to fully neutralize the duties suffered by his export product. Here in both the above circumstances, exporter opts for the brand rate of duty draw back.

 

What is Brand Rate in Duty Drawback

Under this brand rate scheme of drawback, the exporters are compensated by paying the amount of Customs, Central Excise duties and Service Tax incidence actually incurred by the export product. For this purpose, the exporter has to produce documents/proof about the actual quantity of inputs / services utilized in the manufacture of export product along with evidence of payment of duties thereon. The concerned authorities may or may not allot such additional exemption by verification of such documents.

Also read:  How to claim  brand rate, update – New notification on 16th November, 2015 (click here)

 

 

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Other details on how to import export 

Procedure for claiming Duty Drawback
 Amendment and Conversion of Shipping Bills in India - extract of notification 36/2010
 Procedures to claim brand rate of draw back
 Duty Free Import Authorization (DFIA)
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 Disadvantages of Letter of credit (LC) for Exporter
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Click here to know India Trade Classification(ITC)
Service Tax - Click here to read complete notification under Budget 2014
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Export Import Policy of India 2015-20
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Comments


Pankaj B. Ganatra: On 13 October 2015 There is a good information for export and import.I would like to know more (1) For non excise unit, how much can export in Drawback scheme ? any limit ? (2) We are exporting under drawing back scheme and buying raw material (brass scrap) from domestic market with excise gate pass, not taking cenvat benefit. (Only drawback). Is there any chapter ? rules ?

avdhutgaikwad: On 13 October 2015 First I really want to appreciate your work because I have learned lots of business thing from your web site and it is helped me lot. I am not able to calculate duty drawback will you please guide me how to do it one more thin I have been doing business from Jan 2015 and it's been 7 months I have been involved, Interact with domestic wholesale, company managers, company owner and with foreign customer, Agent, Mediator and I realised that I am going wrong way or I do not understand what's in Export Import business. I'll explain with example. (i.e. I want to export sugar and I got contact with foreign customer then he sends me requirement of "500 Ton Sugar need for customer please send your price for the same" then I find best competitive price like Rs-23 per Kg. FOB Mumbai and I sent it to customer and he replied "rate is too high, current price I got is Rs - 19 per Kg." which is I got ex factory rate and I surprised that consignment final with Rs - 19 per Kg rate "some how I came to know it") it's really frustrating

Madhukar Anand : On 13 October 2015 I am very thankful for your valuable guidance on various Export Import matters. Please let me know whether Drawback is admisssble on the Exports made under EPCG scheme in New Exim Policy 2015-20. Previously in old policy 2009-14 it was categorically mentioned but in new policy nothing like that.

Senthilkumar Sugumaran : On 15 October 2015 This email is from a budding Exports Hungry Entrepreneur who stuck up in various areas in Export Business. Talk of the town was about your website which is guiding aspirants like me in Correct track. I went through your Website and felt it is way sculpted more than I expected. From Basic Guidelines + Law Procedures + Step by Step detailing + Exports Terms; Apparently there is no area which you haven't forgotten to cover in the Blog. It is extremely useful for beginners like me. The documentation of Exports and Imports Guidelines shows your experience in this field. I will be very glad to meet you in person or get assistance from you for my Export Business. I feel it would be better if you introduce most efficient "Search" icon in the website as it would help to sort the content which a user is looking for. The current Search icon has some drawbacks. Please take a look at it.

Ninad Marathe : On 15 October 2015 Greetings of the day. I have been regular reader of the information furnished on http://www.howtoexportimport.com. I am very much impressed with the information available on the website and love to read the same to enhance my knowledge. I would like to seek clarity on Duty draw back scheme for export of material. Can you please inform me the expenses related with filling duty draw back when the material is dispatched thru road or thru ship. I also understand that you can claim duty draw back only on the net value of your invoice. i.e. you need to deduct the value of imported raw material while filing for the duty draw back. Can you please explain me whether it is beneficial to go duty draw back route on the total export invoice, or whether it is better to pass on benefit to your supplier for the material imported by them so as to get price benefit when you are finalizing the order.

Uday Patil: On 16 December 2015 Hi Sir, Thank you so much for such a valuable piece of info on exports & imports. Further, I would like to know if there are any duty exemptions on Organic Cosmetics to be imported from Europe. Also Can I obtain import license from Mumbai. Please advice. Thank you. Brgds Uday Patil

Dhurai palani : On 06 August 2016 Can I export branded products throuh my own company. That is viz., Aachi pickles, ramdev ayuervedic products through my company without getting their permission after bought the items in the local arket with valid bill. Can it be legal?

Arihant Jain : On 10 August 2016 We are importers of steel coils and sheets. However, at some point in time we export also but in small volumes. I wanted to know whether duty drawback in Exports is same as MEIS. If not, what is the difference. How to claim the benefits of these schemes?

Ninad Marathe: On 16 August 2016 I have been regular reader of the information furnished on http://www.howtoexportimport.com. I am very much impressed with the information available on the website and love to read the same to enhance my knowledge. I would like to seek clarity on Duty draw back scheme for export of material. Can you please inform me the expenses related with filling duty draw back when the material is dispatched thru road or thru ship? I also understand that you can claim duty draw back only on the net value of your invoice. i.e. you need to deduct the value of imported raw material while filing for the duty draw back. Can you please explain me whether it is beneficial to go duty draw back route on the total export invoice, or whether it is better to pass on benefit to your supplier for the material imported by them so as to get price benefit when you are finalizing the order.

vivek gupta: On 15 October 2016 Dear Sir, I want to know that indegenous purchase bill is after the date commercial invoice date , but before shipping Bill LEO date . So in this case , the case is approved or reject. and please guide us how I manage it. Thank's Vivek Gupta

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