Drawback claims: Chennai Customs shows the way

KOLKATA: DELAYS in settlement of duty drawback (DBK) claims, rightly or wrongly, seem to be a major cause of tension between exporters and Customs authorities.

While exporters maintain that precious little is being done to reduce the number of pending claims, customs authorities say that the problems are mainly due to late filing of Export General Manifest by shipping lines.

Exporters blame the Customs, the Customs blame the shipping lines, and no one really knows where the buck stops.

According to FIEO sources, the Chennai Customs has now adopted a novel system to monitor the pendency of drawback claims, both air and sea.

The authorities have compiled a list of pending claims in which the reasons for pendency is indicated.

It is learnt that the list is being put on to a CD by the southern region office of FIEO and sent to other FIEO offices, so that the same can be scanned for suitable advice to the exporters concerned for effective redressal of defects, if any.

The Customs authorities, it appears, have been finally moved to compile such a list through constant hammering at open house sessions and grievance committee meetings.

Following discussions with Customs authorities, some attempts were made by FIEO earlier to compile such a list for submission.

But things never took shape. Trade circles now aver that the Customs authorities in other regions may take a cue from the Chennai customs, and compile their own lists of pending duty drawback claims, and the reasons thereto, for non-settlement.

This could ensure smoother interaction between exporters and Customs prevails.

It is suggested that once all Customs offices are inter-connected online, things may improve. -- Our Kolkata Bureau