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Regarding duty drawback on handicrafts/ articles of composite materials
� SS No.73.27 and SS No.74.19/ 191 of the Drawback Table
Circular No. 1 dated 9th January 2001
Representations have been received
from the trade that the field formations are not permitting drawback to the
exports of Handicrafts / Artwares of composite materials and also on the
articles of composite materials, involving brass as a constituent material.
2.
The matter has been examined in the Board. It is clarified that the
drawback rate for any export product is basically intended to rebate the duties
of Customs & Central Excise suffered on the inputs used in their
manufacture. In respect of handicrafts/ articles of iron, the drawback rate
reflects only the duty incidence on the main input, i.e., iron. Therefore, if an
article/ handicraft is entered for export, and its constituent materials like
glass, iron etc. are visibly identifiable and their declared weight can be
easily verified individually, the drawback on iron content can be allowed under
SS No. 73.27 and on glass content under SS No. 70.02 of the Drawback Table.
3.
Similarly, for the articles of composite materials having brass as an
input, the drawback rate under SS No.74.19 / 74.191 can be extended to the brass
content if such content is visibly distinguishable and its weight unambiguously
verifiable. In fact, General Note 16 to the Drawback Table clearly envisages
such dispensation.
4.
All pending claims of the parties may be decided accordingly.
5.
Suitable Public Notice for information of the trade and standing orders
for guidance of the staff may kindly be issued on the above lines.
6.
Receipt of the Circular may please be acknowledged.
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