| Date: |
12-08-1996
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| Notification No: |
Customs Circular No 42/1996
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Clarification regarding grant of drawback on hangers under section 74 of the Customs Act simultaneously with All Industry Rate of Drawback on garments
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Clarification regarding grant of drawback on hangers under section 74 of
the Customs Act simultaneously with All Industry Rate of Drawback on garments
Circular No. 42dated 12th
August 1996
Some
representations have been received wherein exporters have pointed out
difficulties in claiming drawback under section 74 of the Customs Act on hangers
supplied free of charge by the foreign buyer of ready-made garments and cleared
on payment of Customs duties. In such cases the exporters claim All Industry
rate of drawback on garments in addition to drawback on hangers under section 74
of the Customs Act.
2. The
matter has been examined in the Ministry and it is clarified that there should
not be nay objection in permitting drawback under section 74 of the Customs Act
on hangers imported with ready-made garments provided hangers have not been used
in India and have not undergone any change. Such drawback under section 74 can
be allowed simultaneously with All Industry rate of drawback on ready - made
garments provided value of hangers is not included in the value of garments. In
such cases it would suffice it hangers and ready-made garments are declared as
two distinct commodities on the Shipping Bill with separate value for claim of
drawback under section 74 and section 75 of the Customs Act, even if for the
sake of convenience hangers have been packed along with ready-made garments.
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