Staff Reporter | 28 Jun, 2008
In keeping with its ongoing efforts to reduce transaction costs
for exporters, the Government proposes to allow exporters to receive
their drawback payments in any of their core banking enabled bank
account in any branch/bank in the country.
Official sources said that the new procedure would take effect
from July 1. With the new procedure, it would no longer be mandatory
for exporters to open a bank account only with the designated
authorised bank branch at the port of export.
According to the existing Customs procedure for computerised
processing of drawback shipping bills and drawback claims under the
Indian customs EDI system, an exporter is required to open a bank
account only with the authorised bank branch at the port of export.
This had been done to enable direct credit of drawback amounts from
the Government to their account, obviating the need for issue of
cheques.
Now, this facility of direct credit would not be tied to the
authorised bank in the port of export, but would be available to any
core banking enabled account in any branch/bank anywhere in the
country.
Drawback payments are made by the Government to exporters to
neutralise the duty incidence on the inputs used in export products.
Welcoming the Government decision, the Delhi Exporters'
Association (DEA) President, S.P. Agarwal said that this move would
enable exporters' to get drawback payments from various ports of
India into one account. For receiving drawback payments, an exporter
need not maintain multiple accounts, one each in an authorised bank
in every port of export.
