The Central Board of Indirect Taxes and Customs announced on Wednesday that it has initiated the electronic disbursement of duty drawback amounts directly into exporters' bank accounts via the PFMS platform.
The disbursement of duty drawback amounts into exporters' accounts will be automatically facilitated through the Public Finance Management System. This initiative by the CBIC aims to progress towards paperless Customs and improve trade facilitation, as stated by the Finance Ministry.
The introduction of this new feature is anticipated to decrease the time required for the payment of drawback amounts by removing manual processes in the drawback disbursement mechanism, thereby enhancing transparency.
PFMS, which is developed and implemented by the Controller General of Accounts, has played a pivotal role in revolutionising the financial administration of the government. PFMS is used for Direct Benefit Transfer as well.
Duty Drawback rebates customs duty chargeable on any imported materials or excisable materials used in the manufacture of export goods.
Duty Drawback claims are processed through the Customs Automated System enumerated in a scroll, Computerised Customs Drawback Advice is printed and sent to the authorised bank branch along with supporting single cheque of consolidated amount for payment of duty drawback amounts into the exporters' accounts. This contributes to the delay in the disbursal of duty drawback.
"The CBIC continues to play a key role in India's efforts to improve ease of doing business through trade facilitation and having fully implemented the WTO Trade Facilitation Agreement, CBIC now aims to undertake next generational Trade Facilitation reforms adopting the TFA plus approach," the statement said.
(With inputs from PTI)
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