(a) Whether duty drawback benefit for export of ethanol has been reduced
during the recent time;
(b) if so, the details thereof and the reasons therefor; and
(c) the steps taken or proposed to be taken to benefit exporters in the matter?
(a) Whether duty drawback benefit for export of ethanol has been reduced
during the recent time;
(b) if so, the details thereof and the reasons therefor; and
(c) the steps taken or proposed to be taken to benefit exporters in the matter?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI J. D. SEELAM)
(a) & (b): The All Industry Rate (AIR) of Duty Drawback is a rebate of specified
duties and taxes based on averages. The composite AIR on ethanol was reduced from
Rs.3.50 per litre to 1% ad valorem with effect from 21.09.2013 so as to eliminate
the potential of mis-declaration of substrate, such as molasses, grains or other,
used in the exported ethanol.
(c): The exporter has option to avail Duty Drawback based on the actual incidence
if the AIR is less than four-fifths of the duties or taxes paid. Representations to
restore the earlier AIR of Duty Drawback on ethanol are being examined.