Forensic Accounting in Practice Research Paper Example | Topics and Well Written Essays - 1250 words

Forensic Accounting in Practice - Research Paper Example Few are discussed below (Davis, 2010). Analytical This refers to the ability of an individual to analyze and interpret current situation with respect to future strategies. This is related with other skills such as detail orientation, responsiveness etc. Analytical skills are applied to different business operations, for instance, forensic accountants are needed to analyze legal documents where analytical skills help them in identifying the fraudulent activities. Intuition Intuition is required to give value added services. This skill is mostly acquired by knowledge, learning and experiences while developing the required capabilities. However, few researchers believe that intuition stems from natural habits and personality of an individual. Intuition is needed by the forensic accountants to improve logical analysis and programmed functioning of mind. For instance, forensic accountants use intuition to make opinions regarding financial reports and also to make linkage between different activities which might give a clue to the final fraud. Team Player This relates to the ability of a professional forensic accountant to work in cooperation with others. Team players are also required to perform the managerial activities such as leading, organizing, motivating etc. The investigations against frauds going in an organization cannot be conducted without an efficient and effective team. For instance, if a team is analyzing the financial statements, trends and ratios of a firm than all the working individuals are required to have clear opinion and consensus about the conclusions. Therefore people who are not good team players cannot coordinate well in such business operations and investigations. Auditing Auditing refers to the official inspection of financial reports and statements. The auditing skill is actually acquired by learning and qualifying the necessary courses for becoming a forensic accountant. However, experience plays a vital role in the overall development of this skill. Huge corporations especially those which are on large scale revenues are needed to conduct financial survey to identify the fraudulent activities. They hire auditors for this purpose and also to ensure the transparency of finances. Research It plays an important role in almost all the business operations but for the forensic accountants it is even more crucial. This is primarily because of the extensive research and investigations required to indentify a financial culprit. Forensic accountants have to be efficient in both primary and secondary research skills to effectively utilize them in different business operations. For instance, when a fraud is identified in an organization then the past activities and financial transactions of the culprit are extensively scrutinized which require the forensic accountant to be exceptionally good at research. 2. Describe the role of a forensic accountant within a courtroom environment. Forensic accounting is getting popularity due to recent cases of fraud such as the one of Enron. The role of a forensic accountant is changing dramatically with respect to the courtroom environment. Since major part of the fraud investigations depends upon accounts therefore accountants must be able to present their view point supported with evidence in courts. These evidences are then evaluated by the lawyers, juries, attorney and judges (Stuart, 2006). Following is a brief description of forensic accountan

FMRI Coursework Example | Topics and Well Written Essays - 1000 words

FMRI - Coursework Example (BME, 2007). The third category of products offered by financial institutions is investment funds. These accumulate assets from investors and invest the assets in a diversified pool of assets. According to BME consulting report of 2007, investment funds can be classified as equity fund, bond funds, balanced funds, money market funds, real estate funds and other funds such as hedge funds. (BME, 2007). The other product is the life insurance. This product is among the largest net asset pools of consumers in the European market. UK is the largest market in Europe in relation to total life insurance provisions. (BME, 2007). Derivatives are the other category of investments issued by financial institutions. â€Å"Derivatives are special non-standardized instruments tailored to meet the different investment strategies and needs of consumers.† (BME, 2007) There are mainly two types of derivatives. They are warrants and certificates. Lastly, there is a private equity. Consumers consider this class of assets better than public equity since the liquidity and transparency level is lower, and is a more established class of assets. (BME, 2007). From a report by the Bank of England, with an increase in interest rate, consumers will shift their investments to suit their risk attitudes. If the rise in interest rate reduces their level of earnings, investors will opt to sell their assets and invest in a different category that will maximize their earnings. For example, a rise in interest rate of bonds will lead to a fall in its price. With this, investors will tend to sell their bonds before maturity and reinvest in securities with a lower prevailing interest rate. On the same report, savings have a direct relationship with changes in interest, whereas investments have an indirect or negative relationship. The increase in interest will make savings more attractive and reduce greatly on borrowings. This is because the rate of borrowing will increase and the income from

The Use Of Market Research Marketing Essay

The Use Of Market Research Marketing Essay Introduction The use of market research is essential to marketers as it is a descriptive and diagnostic tool that allows marketers to understand the complexities of the market. It forms a very important component of market strategy and solving specific market problems. The use of both quantitative and qualitative research methods results in decisions that can take the form of marketing plans and strategies. These results ultimately influence the outcomes of strategic marketing decisions and outcomes that match the marketing goals. The application of these two research methods have different uses as quantitative research methods focuses on statistical data and in which surveys and questionnaires are commonly used. Qualitative research methods focus on the reasons behind behaviours such as why and look to target the attitudes and emotions behind the behaviours that quantitative research often shows ,with focus groups and interviews often being used. The results from these methods are often linked t o the practical use of research methods as results can vary depending on the size, quality, type of method and the skill of the practitioner. The roles of these two research methods and their practical application in finding valid results in market research will be supported below through journal articles and references, which will further show the importance that the effective use of market research methods in various situations is essential in finding valid results that are fundamentally important to marketers today. Overview of research methods and their uses Traditional methods of market research often focused on quantitative results and practices, which although were adequate in finding valid research results, could not adapt well to the changing market and business environments during the 1950s and 60s and in turbulent market situations at the time. It was clear that research methods needed to be improved and as noted in Wilson (1952), The application of qualitative methods would allow a more informed opinion to be gathered on the market, which would be well suited to the changing market situations at the time. Despite the value that qualitative research can bring, there is still a general trend in the dominance of Quantitative methods used by marketers and even in academia where qualitative methods are seen by some with ambivalence and a field with which successful people do not want to be associated with. Ruyter Scholl (1998). Due to this prevailing dominance among marketers, most market research carried out by contemporary organisa tions usually is a triangulation or combination of primarily quantitative techniques with some secondary qualitative methods to complement the research results. Ruyter Scholl (1998). Qualitative methods are best used when conducting exploratory research, when businesses need to understand the behaviour of consumers and formulate ideas and theories as to why consumers think in particular ways. To substantiate qualitative results, Quantitative techniques are used to provide hard evidence behind these ideas and theories and to represent numerically and statistically the resulting research outcomes. Not all marketers however triangulate these techniques and most will only use a methodology which is most appropriate in solving the research problem. Effectiveness in finding valid research results While both these methods have uses in finding valid research results, the variation in defining the research problems throughout various organisations means that the most appropriate methodology and research design should be used to ensure valid results , rather than results that would lack meaning through a bias in using a particular research method. As pointed out in Seymour (1989) , research techniques and their thoughtful application can be the vehicle by which we progress to wisdom. That is, the real worth of a technique is embedded in its ability to produce useful information (i.e., wisdom) in response to a specific problem. Seymour (1989). To ensure that results from market research is valid , a triangulation of methods and techniques should be considered and applied to the research of relevant markets and situations which would ensure results that are both valid, and paint a clear picture of the market environment. This triangulation of methods successful use in finding valid results is seen in Kitchell (1995) where the study conducted attempted to find the links between the importance of a strong corporate culture and the adoption of new technology in conjunction with the issues faced with maintaining a competitive position. This was undertaken with both quantitative and qualitative research techniques. Both methods results were broadly consistent with each other in finding that fostering a stronger corporate culture allowed a more stable innovation and technology adoption which led to long term survival and adaption in market environments. This study has shown insights into how both qualitative and quantitative data can mutually enrich each other in market research as this triangulation of methods allowed valid research outcomes that would not have been seen if only one research method was primarily utilized. The results seen in this study correlate with those undertaken by Deshpande (1983) which explains that more valid results can be seen in market research with a combination of aspects between quantitative and qualitative methodologies. While using a triangulation of methods, the weaknesses and strengths of each technique would be compensated by the strengths of the other method. Deshpande (1983). Although using a triangulation of methods can typically produce valid and meaningful research results, extensive use of these techniques can be limited to firms with considerable budgets than most. To ensure effective results, defining the research problem and identifying the circumstances to which further research is needed is just as important as choosing the most effective methods suited towards the market environment. Outlined in Goodman (1995), the use of Qualitative techniques can be well suited to theory construction and exploratory market research, which can be seen in his subsequent study of small businesses in a changing market environment. In a study of three small businesses facing changing market conditions and extreme price erosion, qualitative research techniques were largely employed to determine achievable market strategies. It found that the exploratory nature of their research conducted through focus groups and depth interviews, allowed them to anticipate changes in customer-value perceptions and benchmark themselves against competitors. This successful use of qualitative techniques in this study shows that this methodological approach was particularly well suited towards finding and generating theories in a changing market environment, which was noted above in early qualitative research literature in Wilson (1952). In finding valid results through various methods, it is clear that marketers must not confine themselves through techniques that are only partially appropriate in solving the research problem. The studies noted above successfully found valid results as a result of their methodologies being used effectively due to the nature of the research problem and their applicability in these situations. However as noted in Cahill (1996) , both qualitative and quantitative methods do not have universal applicability and as such, either method might not be suitable for a variety of situations. This means that marketers who entirely use methods of theory verification (quantitative methods) almost exclusively in situations where theory discovery (qualitative methods) was more appropriate, Deshpande(1983), are limiting the validity and reliability of their results by not applying the most appropriate method in solving the research problem .An effective use of market research techniques would be by triangulating aspects of research methodologies and also the choice of a specific technique on whether a quantitative or qualitative method should be decided by the nature of the management and research problems. Seymour (1989).This would eventuate in valid and meaningful results that serve to help the marketer understand the needs of the consumer and market. Limitations of Research methods While both quantitative and qualitative methods have their established uses among marketers, the limitations of each method in finding valid results can be reflected in the essence of these methods. As the quantitative paradigm is firmly placed within the scientific model, the resulting research outcomes are limited to numerical data that can be quantified and summarized into objective hard data. Results gathered by this particular method emphasise reliability and validity, which makes this a dominant method that marketers commonly use throughout the research process. Because of these factors that make up the essence of quantitative research, the use of this method in finding valid research results is limited to validating established theories and the relationships between variables, but also can substantiate qualitative results through a triangulated methodology. Results accumulated from quantitative research are not suited towards theory generation and gaining insight and as such, marketers solely employing this method will miss out on the value that qualitative methods can bring. However, when involved in research that does not need as much insights or deeper data into defining the research problem, quantitative methods can be effective in analysing large amounts of data as outlined in Montgomery (2001). A successful application of quantitative methods was seen when solving internet marketing problems outlined in this study; however the skill of the practitioner in conducting the research was commonly cited as the factor that allowed valid research outcomes. While this study demonstrated a successful primary use of quantitative methods, the limitations of using qualitative methods in defining the same research problem would not be practical as analysing large swathes of data is not an effective use of qualitative methods. This contrast between both quantitative and qualitative methods, reflect the limitations of solely using one of these methods as the natur e of the results produced from each will be fundamentally different. As discussed in Johansson Nonaka(1987), many Japanese market researchers during the 1980s much preferred research that was hands-on and interactive with consumers , and favoured qualitative data which allowed them to gain a distinctive feel for the market. While these qualitative methods lacked the scientific precision of quantitative methods, Japanese firms still had an unequivocal advantage over western based firms as their exclusively qualitative and hands-on methods allowed them to understand consumer behaviour to the point where they were outstripping rival western based firms. However like most western firms looking to increasingly adopt qualitative methods into their research, the Japanese firms are realising that in order to diversify their product ranges in the market they will need to use quantitative methods to ensure entries into newer markets. Johansson Nonaka (1987). This focus on one methodological approach by the Japanese firms, coupled with their extreme focus on their existing products, can represent limitations into finding valid results as their narrow approach would disallow much confirming or validation of theories attained from their qualitative research, especially when entering new markets. Despite these limitations, it can be argued that the Japanese approach to market research allowed them to understand consumer behaviour in such a way that they were able to achieve valid research results even more reliable than western based quantitative methodologies. The limitations of both methods in finding valid results for marketers, has clearly shown that to overcome the relative weaknesses inherent in each method, an effective use of triangulated research methodologies is essential to finding valid research results. Conclusions As evidenced above, valid results in marketing are commonly seen with a triangulation of methodologies and techniques which pertain to the nature of the research problem. The limitations of both quantitative and qualitative methodologies can be compensated by using a triangulated research process, in which the weakness that is evident in each method will be overcome by the strengths of a triangulated methodology. However, marketers dominant use of quantitative methods in their research to which can be only partially appropriate in solving a research problem, serve to limit the reliability for research results that could otherwise be improved through a triangulated methodology. Likewise, it can be said that the dominant use of qualitative methods by Japanese firms could be further enhanced by the integration of quantitative methods into their research which serves to ease the entry into newer markets. The market environment and the nature of the research problem can also affect resear ch outcomes as the method employed can only be somewhat applicable to the nature of the research problem, in which inadequate results may be seen. Furthermore, it is evident that to ensure valid results in market research, it is recommended that a triangulation of methods be used in the most applicable nature of the research problem and environment.

Family Resource Centers Essay -- Social Work Children Papers

Family Resource Centers Half the children in this country live in homes in which one or both parents work. Twelve million children in this country do not have health insurance, and over 4.5% of all children are victims of suspected child abuse or neglect (Doktor and Poertner). Believe it or not, these are all indicators of the demand for Family Resource Centers within our school systems. Many question whether Family Resource Centers are worth the money the state pours into them. However, in serving students, parents and teachers, there should be no question of their significance. Due to The Kentucky Education Reform Act in the early 1990's we have seen the development of Family Resource Centers in Kentucky, and they are fulfilling expectations and serve a valuable purpose in spite of some skepticism. Being a social work major and growing up in a school system under KERA, I know that family resource centers are important and that all parents, students and teachers need to be informed of all the good they do for a community. To address these points we will discuss the purpose of family resource centers the controversy that surround them and their effectiveness. Background of Family Resource Centers Before we can look at the purpose and the controversy around Family Resource Centers, we must first consider their background and what Family Resource Centers are. According to an Orientation Guide for Newly Employed FR/YSC Coordinators published by Morehead State University's College of Education, Family Resource Centers originated in the Kentucky Education Reform Act of 1990. Section 18 of the historical document called for the establishment of a system of statewide coordination of child service agencies though a school base... ... Blocks for Success: States of States Kentucky." Education Week 21.17 (10 Jan 2002):119 Fact Search. Camden Carroll Lib. Morehead State University. 27 Oct 2013. Jones, Doug. Personal Interview. 2.Dec.2013. Messer, David. Personal Interview. 3 Nov. 2013. Rose, Harold. "Preface. "Orientation Guide for Newly Employed FR/YSC Coordinators." Morehead State University College of Education and Behavioral Sciences, May 1991: 1 "Student and Family Support." Kentucky Department of Education: (9 Sept 2003). 3 Nov. 2013 http://www.kentuckyschools.net. Wojciechowski, A. "Assuring the Effective Advanced Degree Nurse as Clinical Education Program Manager." Internet Journal of Advanced Nursing Practice: 5.2 (Jun 2002):43 Academic Search Premier. EBSCO Host. Camden Carroll Lib. Morehead State University. 27 Oct 2013.

Evaluation Essay

Elan Brannan Evaluation Essay October 26, 2012 Toyota Camry vs. Honda Accord All across America millions of people search for a vehicle to keep them safe while driving. But that isn’t all car consumers look for, car buyers want style, comfort, and most importantly a smooth calming ride. For many years consumers have been comparing two top rated cars, the Toyota Camry and the Honda Accord. Both cars excellent in ratings all across the board however, the Toyota Camry is the number one best safety pick in its class.Looking at both cars history one might decide to choose the Camry because of its long list of positives, but the Honda Accord in the recent year has stepped up the quality. The Honda Accord has improved seats, now with better back support along with more space and better views from the windows. All qualities consumers have come to love. The Honda Accord is the best overall sedan when compared to the Toyota Camry. At first look the design of a car can be intriguing and exciting. The Honda Accord does just that by offering sleeker and bolder abilities with the outstanding new technology. Both models offer Bluetooth, hands free calling and audio streaming but Honda has gone well beyond that, also offering SMS text capability, Pandora audio streaming, dual-zone climate control and an eight inch i-MID display†(Halverson). Honda also took the time to redesign the back seats. The seats are now higher so the passenger can have an easier time looking out the window. The 2012 Camry was redesigned to compete with the Honda. Camry’s have always looked boring compared to the bold design of an Accord. According to Halvorson, although the changes were so subtle and evolutionary they might not have even been noticed.The new 2013 design of the Accord does look a slightly more exciting and better proportioned on the outside, with more of a premium look inside. The design of the Camry has put itself back in the race with the Accord. With a better look maybe more customers are stopping to look at the Camry instead. The design of the Honda Accord speaks for itself but there are more advantages car buyers want to take a look at. Fuel economy is another big factor when buying a car. The Toyota Camry beats Honda in fuel economy, a whopping 43 mpg city and 39 highway however, the Accord offers a lot under the hood. The Accord earns an excellent 27/36 mpg with its new direct-injection four-cylinder and continuously variable automatic transmission (CVT), while the four-cylinder Camry gets 25/35 at best. V-6 Accords are especially smart and efficient, with ratings of 21/34, while Camry V-6 models stand at 21/30†(Halverson). For someone who likes a little bit more edge when driving, the Honda is a better choice. When looking at the hybrid models Honda does not yet have anything planned to release to the market until 2014 but they are expected to do well.Camry is not the leader in hybrid cars but they are doing very well right now. Ne vertheless comfort is always must! A comfortable ride can be a deal breaker. Whether it is commuting or taking the kids to a soccer game the new back support technology and more space for your legs is making this car seem perfect. Also, the Honda Accord offers noise control to keep all of those outside noises out for an even more comfortable drive. â€Å"So they’re among the better choices for carrying adults in the back seat.With its rather low beltline and a little more slide glass, the Accord offers a slightly better view outward for those in back-possibly eliminating the need for Dramamine†(Halverson). As for the Toyota Camry, it was proven to be the overall best drive, when it comes to bumps and being on the freeway. The Camry does not have noise control but it does have insulation proven to make the car ride less noisy and the car ride feel more peaceful. Both cars come so close in quality but what about quantity. Which one costs more? Every car can have all the bells and whistles but what is that going to cost?The Honda Accord wins here too, but not by much. The price for a 2012 Honda Accord is $21,680 and the Toyota Camry is $22,055. Looking at both cars they compare quite nicely. Although there are many similarities, the differences are what set these two cars apart. The Toyota Camry is a smoother ride, safer and its fuel economy is amazing. The Honda Accord offers more technology, comfort and better driving capability. Both cars have been recently redesigned and have added upgrades. The Accord is a better car because of its less expensive price and complete package of a car.There is nothing this car doesn’t offer. Yes, the Camry does go beyond safe and reliable but the Accord is not far behind. For the price of a Camry you’re getting safety, but for the price of an Accord you’re getting safety and style (Halverson). Overall the Honda is a better car; the company offers more amenities as well as a more modern feel. B y offering more space and different technology the Honda wins best overall car when compared to Toyota Camry. Works Cited Halverson, Bengt. â€Å"Toyota Camry vs. Honda Accord Compare Cars†. The Car Connection. N. d. September 11, 2012. October 24, 2012.

Cortes Discussion Essay

1. Why is Cortes’ letter a primary source?  2. Is there any information in his letter that he did not actually observe? How do you reconcile this fact with the idea that this is a primary source? Can a document be partially primary and partially secondary? (i.e., written by someone who did not witness the events or experience the emotion?) 3. What can you infer about Cortes’ motives in writing about â€Å"the wonders of Tenochtitlan† and the Aztecs? Why did he choose to write about the topics he addressed in this letter? Who is is intended audience, and how might that have influenced the letter? 4. Using Cortes’ comments in the first two paragraphs, what assumptions can you make about the wealth of the Aztec state? 5. List three characteristics of the Aztec religion. What religious practice did Cortes attempt to do away with? Do you think that he could have been successful? Cortes’ letter is a primary source because he witnessed the events he wrote about first hand. From what I gathered through his writing Cortes did not appear to leave any vital information out as he reported every aspect of the noble city. The way he was able to give his reader, or readers, vivid descriptions of Temixtitlan from the outside in, gives us reassurance that his letter is indeed a primary source. Unfortunately a document cannot be comprised partially primary and partially secondary. Primary accounts are characterized as the direct proof of a period, with material being delivered by eyewitnesses and in this case, Cortes’ time in Temixtitlan. Cortes chose to comprehend the significance of knowing the geology of the domain he wanted to conquer. Clearly, for early explorers knowing the terrain and being able to locate natural resources is the difference between life and death. He also chose certain topics because he is attempting to make his description audience-relatable, and more importantly, he is trying describe the degree of sophistication of this great city. According to the beginning paragraphs you immediately know that Temixtitlan is an exceptional city as Cortes stated the city had many rare and wonderful objects and that he would try to describe the wealth of what he had seen to the best of his ability. The Aztec religion was sacrificial, barbaric, and full of idol worshipping.

Efficacy of the Duty Drawback Scheme Essays

Efficacy of the Duty Drawback Scheme Essays Efficacy of the Duty Drawback Scheme Essay Efficacy of the Duty Drawback Scheme Essay Table of Contents Contents Table of Contents1 Introduction2 Part I The Duty Drawback Scheme3 The Customs Act 19623 Part II Pros and Cons of the Scheme7 Pros7 Cons8 Part III Case Law8 Conclusion10 Bibliography12 Introduction With the primary objective of incentivizing exports, various schemes like Export Oriented Units (EOUs), Special Economic Zones (SEZs), Duty Exemption Entitlement Schemes (DEECs), Manufacture under Bond etc. have been made available by the government to obtain inputs without the payment of customs duty/excise duty or to obtain refund of duty paid on inputs. In case of central excise, manufacturers can avail Cenvat Credit of duty paid on inputs and utilize the same for payment of duty on other goods sold in India, or they can obtain refund. Schemes like manufacture under bond are also available for customs. On similar lines, manufacturers or processors can also avail of Duty Drawback Schemes. Here, the excise duty and customs duty paid on inputs is refunded to the exporter of finished product by way of ‘Duty Drawback’. Section 75 of Customs Act provides for drawback on materials used in manufacture or processing of export product. Under Duty Drawback Schemes, relief of customs and central excise duties suffered on the inputs used in the manufacture of export product is allowed to exporters. The admissible duty drawback amount is paid to exporters by depositing it into their nominated bank account. It may be noted that duty drawback under section 75 is granted when imported materials are used in the manufacture of goods which are then exported, while duty drawback under section 74 is applicable when imported goods are re-exported as it is and the article is easily identifiable. Section 37 of Central Excise Act allows he Central Government to frame rules for purpose of the Act. In exercise of these powers, The Customs and Central Excise Duties Drawback Rules, 1995 have been framed outlining the procedure to be followed for the purpose of grant of duty drawback by the Customs Authorities processing export documentation. In order to fulfill the objectives of this paper, the paper has been structures as follows. Fi rst, I have analysed the rationale behind a duty drawback scheme. Second, I have delved into the statutory provisions dealing with duty drawback schemes and relevant rules. Third, I have made a comparison of the pros and the cons of a duty drawback scheme and finally, I have observed certain principles that have been laid down through case law before making my concluding remarks. Part I The Duty Drawback Scheme Duty drawback schemes, which typically involve a combination of duty rebates and exemptions, are a feature of many countries’ trade regimes. They are used in highly protected, developing economies as means of providing exporters with imported inputs at world prices, and thus increasing their competitiveness, while maintaining the protection on the rest of the economy. An important principle in the levy of customs duty is that the goods should be consumed within the country of importation. If the goods are not so consumed, but are exported out of the country, the cost of export goods gets unduly escalated an account of incidence of customs duty. Therefore to avoid this escalation of price duty drawback schemes seek to remove the impact of customs duty on imported goods which are eventually exported. Eventual exportation may happen due to: A. Goods are sent back to a foreign country Due to non conformity with required specifications * Trade-restrictions in the country of import * Primary purpose of import was temporary retention B. Goods are used in the manufacture of other products meant for export The latest cause for relief of import duty paid is when the goods are ultimately exported. This factor gained greater importance with the establishment of 100% Export Oriented Units where goods manufactured are mainly exported to earn foreign exchange. T he Customs Act 1962 Chapter X of the Customs Act, 1962 deals with various aspects of the duty drawback scheme in India. Section 74 deals with goods which fall under Category A as described above and Section 75 deals with Category B. In case of goods which were earlier imported on payment of duty and are later sought to be re-exported within a specified period, customs duty paid at the time of import of the goods with certain cut can be claimed as duty drawback by the exporter at the time of export of such goods. Such duty drawback is granted in terms of Section 74 of the Customs Act, 1962 read with Re-export of Imported Goods (Drawback of Customs Duty) Rules, 1995. For this purpose, at the time of import, the identity particulars of the goods are recorded at the time of examination of import goods; at the time of export, cross verification of the goods under export is done with the help of related import documents to ascertain whether the goods under export are the very ones which were imported earlier. Where the goods are not put into use after import, 98% of duty drawback is admissible at the maximum under Section 74 of the Customs Act, 1962. In cases where the goods are put into use in India after import but prior to its export, duty drawback is granted on a sliding scale basis depending upon the extent of use of the goods. No duty drawback is available if the goods are put into use for a period exceeding 36 months after import. Application for duty drawback is required to be made within 3 months from the date of export of goods. If the primary elements of Section 74 as highlighted in the relevant footnote are satisfied, then the export goods are entitled to a payment of drawback of an amount equal to 98%. However, there are certain external factors which can affect the relevant conditions. As a corollary to this proposition, it would follow that the rate fixed by the Government would be applicable for a prescribed period only. If there is a) any variation in the rate of duty paid on the input whether customs or excise duty b) variation in the composition of the final product and c) change in the process of manufacture the rate of duty already fixed by the Government would not be applicable. It would require to be revised. The fixation of a rate of drawback is, therefore a continuous process and the industry availing of such facility of drawback is required to furnish continuously its costing and production data to the organization entrusted with the responsibility of fixation of rates of drawback. It will be noticed that in the case of drawback under section 74 the amount of drawback was related to the actual duty paid on the goods. It did not have any correlation to either the valuation of the goods at the time of exportation or the prevailing rates of duty on the goods at the time of export. However, in the case of section 75 drawbacks, since the identity of the inputs which have suffered customs or excise duty as the case may be, is extinguished in the final product, there has been a necessity to correlate the grant of drawback with the value of the goods exported. It has therefore been prescribed under proviso to section 75(1) of the Customs Act that no drawback of duty shall be allowed under this section if: * the export value of the finished goods or the class of goods is less than the value of the imported material used in the manufacture or processing of such goods or carrying out any operation on such goods or class of goods: or * the export value is not more than such percentage of the value of the imported materials used in 1he manufacture or processing of such goods or carrying out any operation on such goods or class of goods as may be notified by the Central Government; or * any drawback has been allowed on any goods and the sale proceeds in respect of such goods are not received by or on behalf of the exporter in India within the time allowed under the Foreign Exchange Management Act, 1999 (FEMA). In such a case, the drawback shall be deemed never to have been allowed and the Central Government may, by rules made under sub-section ( 2) specify the procedure for the recovery or adjustment of the amount of such drawback. Under Duty Drawback Scheme, an exporter can opt for either a) All Industry Rate (AIR) of Duty Drawback Scheme or b) Brand Rate of Duty Drawback Scheme Major portion of Duty Drawback is paid through AIR Duty Drawback Scheme which essentially attempts to compensate exporters of various export commodities for average incidence of Customs and Central Excise duties suffered on the inputs used in their manufacture. Brand rate of duty drawback is granted in terms of the Customs and Central Excise Duties Drawback Rules, 1995 in cases where the export product does not have any AIR or duty drawback rate, or where the AIR duty drawback rate notified is considered by the exporter insufficient to compensate for the Customs/Central Excise duties suffered on inputs used in the manufacture of export products. For goods having an AIR the brand rate facility to particular exporters is available only if it is established that the compensation by AIR is less than 80% of the actual duties suffered in the manufacture of the export goods. Part II Pros and Cons of the Scheme Pros The principal method of encouraging the export of goods has been the drawback of customs and the central excise duties on goods manufactured out of customs duty paid and/or central excise duty paid on inputs or raw materials. The Duty drawback schemes are used in highly protected economies as means to provide exporters of manufactured goods with imported inputs at world prices and thus increasing their profitability, while maintaining the protection for domestic industries that compete with imports. The choice of export drawbacks is reinforced by international regulations, namely that GATT rules out the use of direct export subsidies, but allows the use of drawbacks. If export was not there, there would be no manufacture of the goods now being manufactured. So there would be no duty collected also. Duty exemptions increase the competitiveness and efficiency of the economy. In the absence of duty drawbacks the protection of import competing firms is in general positive, while that of export competing firms is negative. This is because export competing firms face world prices while domestic competing firms are protected by tariffs on final goods. Duty drawbacks reduce the Effective Rates of Protection (ERPs) for export competing firms to 0 which allows export producers to operate at world prices, and halve the standard deviation in ERPs, which in turn increases the efficiency of the economy. Cons * A duty drawback scheme is an obvious and direct loss of government revenue * Creates opportunity for cheating and abuse * Absorbs administrative resources for its implementation * Drawbacks do not offset non-tariff barriers against imported inputs The implementation of Duty Drawback Programs in developing countries has not fared very well for various reasons such as * administrative weaknesses in customs administration, * poor statistical infrastructure, failure of the government to reimburse pre-paid duties because of financial difficulties Part III Case Law It is important to bear in mind the distinction between Section 74 and Section 75. Section 74 of the Customs Act comes into operation when articles are imported and there upon exported, such articles being easily identifiable. Section 75 on the other hand comes into operation when imported materials are used in the manufacture of goods which are exported. The Government of Andhra Pradesh floated an international tender for the transportation of a monolithic Buddha statue. The statue was required to be transported from Raigir, Nalgonda District, to the foreshore of Hussain Sagar Lake, Hyderabad, where it was to be installed. The transportation of this monolithic statue was a highly technical work and a special equipment for transportation as well as special lifting and erection equipment called Hydra-jack was required. This Hydra-jack was imported from a firm in Holland on hire. The equipment was imported on a customs clearance permit on an undertaking to export the equipment within a specified period. However, the job of installation of statue in the rock at the centre of the lake could not be completed as during transportation of the statue from the shore to the central rock, the statue sank in the lake. The Hydra-jack was therefore shipped back to the suppliers from whom it was hired. A claim for drawback under section 74 of Customs Act was made claiming drawback of 98% of the total duty paid in respect of the goods. The Assistant Commissioner however allowed drawback only at the rate of 85% of the total import duty paid. The question that needed to be determined is whether the drawback is to be granted at 98% or 85% as has been allowed by the department. The Delhi High Court held that the reduction in the rate of drawback was applicable in case where the goods had been used after importation and this reduction was sanctified in accordance with a notification issued under section 74 prescribing the rates of drawback admissible in case of goods used in India before their re- export. In deciding the matter, the court took a clear view that whether the jack in question was used or not is a question of fact. Since the statue did not reach the central rock where the statue had to be hoisted for installation, it is clear that the Hydra-jack could not be used in India. The Court held that in these circumstances, the drawback was admissible under section 74. In another famous case Commissioner of Customs Vs. India Steel Industries, it was held that rules of interpretation in tariff need not be extended to interpretation of classification under the Drawback Rules. In this case the contention was regarding schedule II to Customs and Central Excise Drawback Rules. Two entries which were under the scanner were entry 3606 and entry 3803 The issue was whether the words â€Å"all types† occurring in the entry against 3606 referred to â€Å"steel bars† alone or qualified the next nomenclature of â€Å"shaftings†. In the Customs Tariff, a clear distinction is made between bars and shaftings. The department argued that in the commercial parlance, bars were not known to be made up of stainless steel and shaftings did not come under the same category as bars. It was therefore, argued by the department that shafting would appropriately fall under the description of articles made of stainless steel including stainless steel castings. The Government of India held that the words â€Å"all types† did not refer to dimensional distinction alone but referred to the nature of the material used such as mild steel, carbon austenitic steel etc. It was further held that the rules of the interpretation of a tariff would not apply to rules of interpretation of the entries to the Schedule II to drawback rules, but they would have persuasive value. It was further held when two different descriptions or words are used, it would be necessary to give them the natural and separate meaning to make them meaningful. In LVT Products v. CC, it was held that there is no provision for refund of import duty, if imported goods are re-exported. The assessee can only claim duty drawback u/s 74. Conclusion While in many countries duty drawbacks have not been implemented successfully, largely due to administrative weaknesses, in others these schemes have been very effective in opening up export-oriented sectors by overriding existing protection. In China, duty exemptions at the point of entry have been an essential part of the country’s export processing system and trade reform process. As far as India is concerned, on a theoretical analysis as shown above it is evident that duty drawback schemes are an effective mechanism to encourage exporters to exports goods to foreign countries. Moreover, it also acts as an effective safeguard in cases where the exporter has to send back goods due to extraneous circumstances. From the standpoint of the State-Exporter relationship it is like a reward that that state is giving to the exporter for his contribution towards the increase in export. As pointed out earlier, if imported goods are not consumed, but are exported out of the country, the cost of export goods gets unduly escalated an account of incidence of customs duty. Therefore to avoid this escalation of price duty drawback schemes seek to remove the impact of customs duty on imported goods which are eventually exported. To conclude it can be said that keeping aside the administrative hiccups in making the implementation of duty drawback schemes effective, it would not be wrong to say that these schemes can and have shown tremendous potential to enhance exports. Bibliography BOOKS 1. B. Seyoum, Export-Import Theory, Practice, and Procedures (2nd Edn. , London: Routledge, 2009) 2. B. N. Gururaj, Guide to Customs Act (1st edn. , Nagpur: Wadhwa Publications, 2003) 3. R. K. Jain, Central Customs Law Manual (43rd edn. , New Delhi: Centax Publications, 2011) 4. R. K. Jain, Central Excise Law Manual (53rd edn. , New Delhi: Centax Publications, 2011) ARTICLES 1. A. Panagariya, â€Å"Input tariffs, duty drawbacks, and tariff reforms†, 32(1-2) Journal of International Economics, 131-147 (1992). 2. E. Ianchovichina, â€Å"Trade policy analysis in the presence of duty drawbacks†, 26(3) Journal of Policy Modelling, 353-371 (2004). 3. R. Wade, â€Å"How to Protect Exports from Protection: Taiwans Duty Drawback Scheme†, 14(3) The World Economy, 299-309 (1991). 4. T. P. Harrison, â€Å"Principles for the Strategic Design of Supply Chains†, 62(1) International Series in Operations Research ; Management Science, 3-12 (2004). 5. H. C. Oh and I. A. Karimi, â€Å"Global multiproduct production– Distribution planning with duty drawbacks†, 52(2) American Institute of Chemical Engineers Journal, 595-610 (2006). 6. M. Olarreaga, O. Cadot et al. , â€Å"Can Duty Drawbacks Have a Protectionist Bias? † World Bank Policy Research Working Paper No. 2523 (2001). WEBSITES 1. www. indlaw. com 2. www. jstor. com 3. www. manupatra. com 4. www. taxindiaonline. com 5. www. web. worldbank. org [ 2 ]. The Institute of Chartered Accountants of India, Duty Drawbacks sourced from http://220. 227. 161. 86/18917sm_finalnew_idtl_customs_cp11. pdf (December 5, 2011). [ 3 ]. DRAWBACK scheme [ 4 ]. The rules govern the drawback in cases of export of imported goods as it is and also in cases where the goods imported are used as inputs for producing a final product which is ultimately exported. [ 5 ]. Sourced from, taxindiaonline. com/RC2/pdfdocs/cm/cm22a. pdf (December 5, 2011). [ 6 ]. E. Ianchovichina, â€Å"Trade policy analysis in the presence of duty drawbacks†, 26(3) Journal of Policy Modelling, 353-371 (2004) at 355. [ 7 ]. SECTION 74: Drawback allowable on re-export of duty-paid goods. 1) When any goods capable of being easily identified which have been imported into India and upon which [any duty has been paid on importation, i. are entered for export and the proper officer makes an order permitting clearance and loading of the goods for exportation under section 51; or ii. are to be exported as baggage and the owner of such baggage, for the purpose of clearing it, makes a declaration of its contents to the proper officer under section 77 (which declaration shall be deemed to be an entry for export for the purposes of this section) and such officer makes an order permitting clearance of the goods for exportation; or iii. re entered for export by post under section 82 and the proper officer makes an order permitting clearance of the goods for exportation, ninety-eight per cent of such duty shall, except as otherwise hereinafter provided, be re-paid as drawback, if -] a. the goods are identified to the satisfaction of the [Assistant Commissioner of Customs or Deputy Commissioner of Customs] as the goods which were imported; and b. the goods are entered for export within two years from the date of payment of duty on the importation thereof : Provided that in any particular case the aforesaid period of two years may, on sufficient cause being shown, be ex tended by the Board by such further period as it may deem fit. 2) Notwithstanding anything contained in sub-section (1), the rate of drawback in the case of goods which have been used after the importation thereof shall be such as the Central Government, having regard to the duration of use, depreciation in value and other relevant circumstances, may, by notification in the Official Gazette, fix. [(3) The Central Government may make rules for the purpose of carrying out the provisions of this section and, in particular, such rules may - a. provide for the manner in which the identity of goods imported in different consignments which are ordinarily stored together in bulk, may be established; b. specify the goods which shall be deemed to be not capable of being easily identified; and c. provide for the manner and the time within which a claim for payment of drawback is to be filed. ] (4) For the purposes of this section a. oods shall be deemed to have been entered for export on the date with reference to which the rate of duty is calculated under section 16; b. in the case of goods assessed to duty provisionally under section 18, the date of payment of the provisional duty shall be deemed to be the date of payment of duty. [ 8 ]. SECTION 75: Drawback on imported materials used in the manufacture of goods which are exported (1) Where it appears to the Central Government that in respect of goods of any class or description [manufactured, processed or on which any operation has been carried out in India] [, being goods which have been entered for export and in respect of which an order permitting the clearance and loading hereof for exportation has been made under section 51 by the proper officer,] [or being goods entered for export by post under section 82 and in respect of which an order permitting clearance for exportation has been made by the proper officer], a drawback should be allowed of duties of customs chargeable under this Act on any imported material s of a class or description used in the [manufacture or processing of such goods or carrying out any operation on such goods], the Central Government may, by notification in the Official Gazette, direct that drawback shall be allowed in respect of such goods in accordance with, and subject to, the rules made under sub-section (2). Provided that no drawback shall be allowed under this sub-section in respect of any of the aforesaid goods which the Central Government may, by rules made under sub-section (2), specify, if the export value of such goods or class of goods is less than the value of the imported materials used in the [manufacture or processing of such goods or carrying out any operation on such goods] or class of goods, or is not more than such percentage of the value of the imported materials used in the [manufacture or processing of such goods or carrying out any operation on such goods] or class of goods as the Central Government may, by notification in the Official Gazet te, specify in this behalf : Provided further that where any drawback has been allowed on any goods under this sub-section and the sale proceeds in respect of such goods are not received by or on behalf of the exporter in India within the time allowed under the [Foreign Exchange Management Act, 1999 (42 of 1999)], such drawback shall be deemed never to have been allowed and the Central Government may, by rules made under sub-section (2), specify the procedure for the recovery or adjustment of the amount of such drawback. ] (1A) Where it appears to the Central Government that the quantity of a particular material imported into India is more than the total quantity of like material that has been used in the goods [manufactured, processed or on which any operation has been carried out in India] and exported outside India, then, the Central Government may, by notification in the Official Gazette, declare that so much of the material as is contained in the goods exported shall, for the p urpose of sub-section (1), be deemed to be imported material. ] (2) The Central Government may make rules for the purpose of carrying out the provisions of sub-section (1) and, in particular, such rules may provide – a. for the payment of drawback equal to the amount of duty actually paid on the imported materials used in the manufacture or processing of the goods or carrying out any operation on the goods or as is specified in the rules as the average amount of duty paid on the materials of that class or description used in the manufacture or processing of export goods or carrying out any operation on export goods of that class or description either by manufacturers generally or by persons processing or carrying on any operation generally or by any particular manufacturer or particular person carrying on any process or other operation, and interest if any payable thereon;] aa. for specifying the goods in respect of which no drawback shall be allowed; ab. for specifying the p rocedure for recovery or adjustment of the amount of any drawback which had been allowed under sub-section (1) [or interest chargeable thereon]; b. for the production of such certificates, documents and other evidence in support of each claim of drawback as may be necessary; c. or requiring the [manufacturer or the person carrying on any process or other operation] to give access to every part of his manufactory to any officer of customs specially authorised in this behalf by the [Assistant Commissioner of Customs or Deputy Commissioner of Customs] to enable such authorised officer to inspect the processes of [manufacture, process or any other operation carried out] and to verify by actual check or otherwise the statements made in support of the claim for drawback. d. for the manner and the time within which the claim for payment of drawback may be filed;] [(3) The power to make rules conferred by sub-section (2) shall include the power to give drawback with retrospective effect fro m a date not earlier than the date of changes in the rates of duty on inputs used in the export goods. ] [ 9 ]. A. Panagariya, â€Å"Input tariffs, duty drawbacks, and tariff reforms†, 32(1) Journal of International Economics, 131-147 (1992) at 137. [ 10 ]. See Generally, Supra, note 8. [ 11 ]. Supra note1. [ 12 ]. Supra note 4. [ 13 ]. Rules 6 7, The Customs and Central Excise Duties Drawback Rules, 1995. [ 14 ]. Supra note 4. [ 15 ]. Sourced from, http://web. worldbank. org/WBSITE/EXTERNAL/TOPICS/TRADE/0,,contentMDK:20540524~pagePK:148956~piPK:216618~theSitePK:239071,00. html (December 12, 2011). [ 16 ]. Supra note 5, at 357. [ 17 ]. ABC India Ltd. v. UOI 1992(61) ELT 205 (Del HC). [ 18 ]. Supra note 1. [ 19 ]. All type of bright steel bars and shaftings Rs. 395/- PMT [ 20 ]. Articles made of stainless steel including stainless Rs . 890/- PMT steel castings, not otherwise specified, made of austenitic variety of stainless steel [ 21 ]. 1998(103) ELT 663 (CEGAT).