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Regarding Duty Drawback on Composite Items
Customs
Circular No. 9 dated 17th February 2003
Attention is invited to
General Note 11 to Customs Notification No.33/2002-Cus (N.T.) dated 29.5.2002.
In terms of the said note, if a composite article is exported for which any
specific rate has not been provided in the Duty Drawback Table, duty drawback
can be extended to the composite articles according to the net content of
various constituent materials at the rate of duty drawback applicable to such
materials in the Drawback Table. However, such extension of drawback is subject
to the condition that various constituent materials are visibly distinguishable
and their weights unambiguously verifiable.
2.
The trade has however been representing that on occasions it becomes
difficult to resolve the composite article into its constituent components and
the only alternative is to break the article. This results in wastage of the
products and also the exporters are asked to go for laboratory testing to
ascertain the composition of individual materials.
3.
This issue has been considered by the Kelkar Committee and based on its
recommendations, the Board has decided that as a general policy, the weight of
the constituent materials in a composite item as declared by the exporters
should be accepted. The verification can be caused only in cases of doubt or if
there is intelligence to the contrary.
4.
Suitable public notices for information of the Trade and standing orders
for guidance of the staff may kindly be issued accordingly.
5.
The receipt of this Circular may kindly be acknowledged.
Declaration to be given by Manufacturer Exporters or Merchant Exporters with
Supporting Manufacturers for availing All Industry Rates of Drawback
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1.
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Description of the
Goods:
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2.
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Invoice No. and Date:
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3.
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Name and address of
the Exporter alongwith the name of the Jurisdictional Central Excise
Commissionerate/ Division/Range:
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4.
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Name of the Supporting
Manufacturer (s) / alongwith the name of the Jurisdictional Central Excise
Commissionerate/ Division/ Range: (FOR MERCHANT EXPORTERS).
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5.
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Address of the
Manufacturing Unit(s):
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We, M/s. _________________, the Exporters of the above-mentioned goods, hereby
declare that
(a)
we are manufacturer exporters and are not registered with Central Excise
and have not paid any Central Excise duty on these goods, Or
we are merchant
exporters and our supporting manufacturer (s) whose details are given above at
S.No.4 are not registered with the Central Excise, and have not paid any Central
Excise duty on these goods, and
(b)
we further declare that we or our supporting manufacturers have not
availed of Cenvat facility in respect of these export goods.
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