Latest News | CBIC Starts Electronic Disbursal of Duty Drawback Directly to Exporter's Bank A/cs Via PFMS
Get latest articles and stories on Latest News at LatestLY. The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday said it has started electronic disbursal of duty drawback amounts directly to exporters' bank accounts using the PFMS platform.
New Delhi, Jun 5 (PTI) The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday said it has started electronic disbursal of duty drawback amounts directly to exporters' bank accounts using the PFMS platform.
The payment of duty drawback amounts into the exporters' accounts will be facilitated through the Public Finance Management System (PFMS) automatically. This is another initiative of the CBIC towards paperless Customs and enhanced trade facilitation, the finance ministry said in a statement.
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This new functionality is expected to reduce the time taken for payment of drawback amount by eliminating manual intervention in the drawback disbursal mechanism and increase 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 (DBT) 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 (CAS), enumerated in a scroll, Computerised Customs Drawback Advice (CCDA) 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 (TFA), CBIC now aims to undertake next generational Trade Facilitation reforms adopting the TFA plus approach," the statement added.
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