There is also a scheme for exporters to claim the refund of Customs duty paid on raw cashew. The refund is available after the export of processed kernel. But in this scheme imported raw cashew should be required to be processed for export. Exporter can claim Drawback by submitting duty paid receipts after completion of each export or on production of required shipping bills.
There are problems in this scheme. Usually medium scale kernel exporters make some purchases from domestic sellers to fulfil their export commitments. Sometimes, such purchases are around 50% of their total export turnover. If such purchases are deducted, their export will become only 50% of their import.
They can not get the Drawback on the export of such additions on following grounds –
Duty paid raw cashew should be processed by the importer and the export should be from this process. Domestic kernel purchases are neither from their duty paid receipts nor their import is required to be processed for such additional exports.
Therefore Exporters may demand the 4 : 1 tally in this scheme also.