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Regarding All Industry Rate of Drawback in respect of Ready-made Garments
Drawback Circular No.11 dated 11th
February 2002
Representations have been received from the Apparel
Export Promotion Council and the trade in general that the field formations are
applying a single drawback rate and drawback cap to the goods which are clearly
defined in different entries of the Drawback Table under Chapter 62, on the
premise that the same constitute as Set. Trade has, however, resented this
practice as it results in grant of lower drawback compared to their actual
entitlement.
2. The issue has been
examined in the Board. It appears that the field formations are applying the
instructions contained in Drawback Circular No.10/2001-Cus dated 23.2.2001.
3. It is clarified
here that the Circular No.10/2001-Cus was issued in the perspective of previous
Drawback Table i.e2000-2001 when the entries were generic. This was intended to
restrict drawback only in respect of Babies� Garments or certain other
Ladies� Garments which though were exported in sets but availed duty drawback
as single garment and had the limitation drawback cap of Rs.65/- per piece i.e.
individually. Therefore, it was decided that such garments if packed together
and also billed together could be eligible for drawback only as "Sets"
and not as individual garments.
4. However, in the
current Table2001-2002, many specific entries have been created with individual
drawback rates and caps. Moreover, the word �Set� has not been mentioned.
Therefore, SS. Nos.62.09 and 62.10 are intended to cover only those items, which
do not find specific mention SS Nos.62.01 to 62.08 of Chapter 62 of the Drawback
Table.
5. Suitable public
notice for information of the trade and standing orders for guidance of the
staff may kindly be issued accordingly.
6.
The receipt of this Circular may kindly be acknowledged.
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