Section 16A in The Customs, Central Excise Duties and Service Tax Drawback Rules, 1995
16A. Recovery of amount of Drawback where export proceeds not realised.
(1)Where an amount of drawback has been paid to an exporter or a person authorised by him (hereinafter referred to as the claimant) but the sale proceeds in respect of such export goods have not been realised by or on behalf of the exporter in India within the period allowed under [the Foreign Exchange Management Act, 1999 (42 of 1999)] [Substituted vide Notification No. 19/2003 - Customs (N.T.) dated 03/03/2003], including any extension of such period, such drawback shall be recovered in the manner specified below.[Provided that the time-limit referred to in this sub-rule shall not be applicable to the goods exported from the Domestic Tariff Area to a special economic zone.] [Inserted vide Notification No. 19/2003 - Customs (N.T.) dated 03/03/2003](2)[ If the exporter fails to produce evidence in respect of realisation of export proceeds within the period allowed under the Foreign Exchange Management Act, 1999, or any extension of the said period by the Reserve Bank of India, the Assistant Commissioner of Customs or the Deputy Commissioner of Customs, as the case may be or Deputy Commissioner of Customs shall cause notice to be issued to the exporter for production of evidence of realisation of export proceeds within a period of thirty days from the date of receipt of such notice and where the exporter does not produce such evidence within the said period of thirty days, the Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be or Deputy Commissioner of Customs shall pass an order to recover the amount of drawback paid to the claimant and the exporter shall repay the amount so demanded within ) thirty days of the receipt of the said order :] [Substituted vide Notification No. 10/2006 - Customs (N.T.) dated 15/02/2006]Provided that where a part of the sale proceeds has been realised, the amount of drawback to be recovered shall be the amount equal to that portion of the amount of drawback paid which bears the same proportion as the portion of the sale proceeds not realised bears to the total amount of sale proceeds.(3)Where the exporter fails to repay the amount under sub-rule (2) within said period of )thirty days referred to in sub-rule (2), it shall be recovered in the manner laid down in rule 16.(4)Where the sale proceeds are realised by the exporter after the amount of drawback has been recovered from him under sub-rule (2) or sub-rule (3) and the exporter produces evidence about such realisation within one year from the date of such recovery of the amount of drawback, the amount of drawback so recovered shall be repaid by the Assistant Commissioner of Customs or Deputy Commissioner of Customs to the claimant.
