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Admissibility of made-ups made out of yarn dyed fabrics for DEPB Credit
Circular No. 54 dated 25th August 1999
References have
been received from the field on the subject issue, seeking clarifications on the
scope of Board's Circular Nos. 6/ 99-Cus. dated 17.2.99 and 10/ 99-Cus. dated
10.3.99 vis-a-vis DGFT's Policy Circular No. 67 (RE-98)/ 98-99 dated 19.2.99.
2. It
is observed that DGFT's Policy Circular No. 67 (RE-98)/ 98-99 dated 19.2.99 goes
beyond the scope of Board's Circulars mentioned above. It is hereby clarified
that the said circular issued by DGFT must be ignored, and all Custom Houses
must follow Board's above-mentioned circulars.
3. In
regard to exports from Handloom Sector, Circular No. 10/ 99 ibid provides for
certification of the respective shipping bills by Handloom Export Promotion
Council (HEPC).
4. For
exports of made ups made from processed yarn dyed fabrics (i.e. where the fabric
is made from dyed-yarn) from other than handloom sector, the following decisions
have been taken: -
(i) The
processed fabric is invariably liable to central excise duty, and would be
cleared by manufacturer exporters against an AR-4/ AR-5 form. In such cases,
Custom Houses may admit the shipping bills under DEPB Scheme.
(ii) In other cases, i.e.
where the goods are exported by merchants and are not accompanied by AR-4/ AR-5
form, some processes like printing are capable of being determined by a visual
examination. Such printed fabrics can be regarded as processed fabrics before
they were converting it into 'made-ups', the shipping bills may also be admitted
under DEPB Scheme.
5. For cases which
are not covered under the preceding two para, Commissioner of Customs may
require exporters to furnish with the shipping bills a test report to establish
that the fabric was subjected to any of the prescribed processes.
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