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Duty Drawback - All Industry Rates of Drawback effective from 23.10.1996
Circular No. 49 dated 22nd
October 1996
The Ministry has
announced new All Industry rates of Drawback effective from 23.10.1996, vide
Notification No. 49/ 96-Cus. (NT), dated 22.10.1996.
2. As
a part of on- going exercise of simplification of Customs procedure relating to
exports as well as entries in the Drawback Table, they have been amended so as
to redesigned the entries in 7 digits to provide expanded description of export
products. This effort has been made with a view to removing doubts and
ambiguities.
3. Similarly,
158 footnotes specified in various-chapter and headings in the existing Drawback
Table have been incorporated in the relevant entries them- selves so as to
further facilitate electronic processing of drawback claims. The existing
General Notes have been expanded from 11 to 17 so as to cover different
situations under which All Industry Rates of Drawback is to be disbursed. The
descriptions of several export products have been made specific in order to
avoid any ambiguity in classification.
4. In
respect of Ready-Made Garments, broad banding of drawback rates have been
attempted so as to reduce the incidence of drawal of samples and their testing
besides benefiting a larger section of exporters. For instance, a single rate of
drawback on export of ready made garments manufactured out of all types of woven
fabrics and ready-made garments made out of all types of knitted fabrics have
been provided. Like-wise rates for such garment as well as all other made-up
articles of over invoicing of export of these garments. Similar cap has been
imposed in respect of 100% polyester filament fabrics as well as man- made spun
fabrics.
5. In
case of made-up articles made from textile fabrics, the Central Excise duty
incidence suffered on the fabrics has been considered while working out the
rates of drawback. Therefore, the existing note has been deleted in order to
remove the ambiguity in the admissibility of the All Industry Rates of Drawback
on such export products.
6. Currently,
the inputs imported under DEEC scheme have to suffer the Addl. Customs duty and
as such the benefit of Central Excise duty scheme on their inputs even when the
goods have been imported under DEEC Scheme shall continue to get the drawback.
7. Customs
& Central Excise Duties Drawback Rules have been amended to provide that
drawback will be determined/ paid even if the drawback amount is less then 1% of
f.o.b. value of export. It has also been decided to extend the simplified scheme
for payment of Brand Rates of Drawback to registered partners, ship firms in
addition to limited companies who were hitherto availing this facility.
8. Net effect of the
changes made in the Drawback Table will be as under:
1. 16
new export products have been added.
2. On
402 export products, existing drawback rates have been improved.
3. On 78
export products, existing drawback rates have been continued.
4. On
106 export products, existing drawback rates have been reduced.
5. Items
where FOB rates have been converted into specific rates or vice versa.
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