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Instructions regarding Duty Drawback - All Industry Rates of Drawback
effective from 1.6.1997
Circular No. 13 dated 30th May
1997
The Ministry has
announced the new All Industry Rates of Drawback effective from 1.6.1997 vide
Notification No. 22/07-Cus (NT) dated 30.5.97.
2. A
key feature relates to the further harmonising of the Drawback Table with the
Customs Tariff Act, 1975. The existing description of the export goods have as
far as possible been retained in the existing Table, except where the same was
not possible on account of the earlier entry being a generic one. In such cases,
the entry has been split to cover the products under the appropriate Chapter
Heading of the Customs Tariff Act, 1975, and retaining the common rate Duty
Drawback against all the split up entries.
3. Headings/
Sub-headings in the new column No. 2 of the Drawback Table indicate the
Headings/ Sub-Headings of the Customs Tariff under which the export products
would be classifiable if imported. Accordingly, General Note No. 10 of the above
Notification has been re-structured to provide a corresponding correlation
between the General/Sub Serial Nos. of the Table with the Headings/ Sub-Headings
of the said First Schedule.
4. Commissioners
are requested to closely monitor the Drawback payments under the revised
Headings and wherever any excessive variation of amounts being disbursed, are
noticed, the same may be immediately brought to the notice of the directorate
through a separate reference.
5. Similarly,
if there are any errors noticed in the harmonised entries, the same may also be
immediately brought to our notice through a D.O. letter so that correct
Heading/Sub-Headings are indicated in Column No. 2 of the table.
6. All
the staff concerned may be advised to go through the changes made in the All
Industry Rates of Drawback carefully to avoid any possible error. Any difficulty
in the implementation of the Drawback Rate may please be intimated to the
undersigned by name either through Telex or Fax Message or by D.O. letter.
7. As
regards the need for production of a Certificate by the exporter regarding
availment or otherwise of MODVAT under General Note No. 11 of the said All
Industry Rates of Drawback Notification, necessary instruction are being issued
through a separate Circular. Commissioners are also requested to forward a list
of export products covered by the Drawback, which are unconditionally exempt
from payment of Central Excise duty.
8. Your
attention is also invited to the revised Customs and Central Excise (Duty
Drawback) Rules, 1995, issued under Customs Notification No. 37/ 95-Customs and
Central Excise (NT), which have already been circulated, to you. The changes
made therein, should also be kept in mind and any difficulty experienced in
their implementation or changes necessary, should be brought urgently to the
notice of the undersigned.
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