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Regarding Problems Faced by Merchant Exporters Regarding Availment of
Drawback on Garments
Customs
Circular No. 43 dated 19th July 2002
Attention
is invited to Ministry�s Circular No. 54/ 2001-Cus. dated 19.10.2001 and 64/
2001- Cus dated 19.11.2001, issued to address the specific problems of
merchant-manufacturer exporters of garments in claiming duty drawback.
2.
In the Union Budget, 2001-2002, duty of Central Excise was imposed on
readymade woven garments. Therefore, entries were created in the Drawback Table,
2001-2002, with higher drawback rates for those cases where CENVAT facility was
not availed. It was, however, represented by the Garment industry that majority
of the garment exporters cleared the goods for export purposes and they were not
paying any duty. Accordingly, garment exporters were given the facility of
filing only declarations in terms of the above-referred Circulars instead of
furnishing CENVAT non-availment certificates, for claiming higher drawback. No
such procedure was considered necessary for knitted garments, as they were
exempt from Central Excise levy.
3.
This year, knitted garments too have been subjected to Central Excise
duty. Therefore, as in case of woven garments, separate entries have been
created in the Drawback Table, 2002-2003, for the cases where CENVAT facility is
availed and those cases where no such facility is availed. Certain trade bodies
have brought it to the notice of the Board that the exporters of knitted
garments are facing difficulties as the Customs officers in the field formations
have been insisting on the production of a certificate regarding non-availment
of CENVAT facility. The trade has represented that the position of knitted
garments is not different from the one obtaining in respect of woven garments as
majority of knitted garments produced are cleared for exports. Hence, the
question of availment of CENVAT facility in respect of exports does not arise.
They have requested that for this reason these exports should be given the same
facility as is available to the woven garments.
4.
The issue has been examined in the Ministry. In view of the position
explained by the trade, it is felt that the knitted garments sector deserves the
same treatment as given to the woven garment sector. Hence, it is clarified that
the provisions of Circulars No. 54/2001-Cus and 64/2001-Cus would also be
applicable to the knitted garments. These exporters may be granted higher
drawback on production of the declarations as provided in Annexure-I
and Annexure-II to this Circular.
5.
Since, the Central Excise levy on knitted garments has come into effect
from 1.3.2002, all the exports effected on or after this date shall be eligible
for this facility, Therefore, all the pending cases may be settled accordingly.
6.
Commissioner of Customs shall get the veracity of these declarations
verified by following the same procedure as is detailed in paragraph 8 of the
earlier Circular No. 54/ 2001-Cus dated 19.10.2001.
7.
Suitable public notices for the trade and standing orders for the staff
concerned may be issued at your end.
ANNEXURE-I
EXPORTERS�
DECLARATION REQUIRED FOR EXPORTS OF WOVEN/ KNITTED GARMENTS FOR AVAILING HIGHER
ALL INDUSTRY RATE OF DRAWBACK.
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1.
Description of the Goods:
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2.
Invoice No. and Date:
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3.
Name and address of the Exporter alongwith the name of the
jurisdictional Central Excise Commissionerate/Division/Range:
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4.
Name of the Supporting Manufacturer (s)/ Job worker (s) alongwith the
name of the Jurisdictional Central Excise Commissionerate/ Division/
Range:
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5.
Address of the Manufacturing Unit(s)/ Job Work Premises:
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We, M/s. ____________________, the Exporters of the above-mentioned goods,
hereby declare that -
(a) we are not registered with
Central Excise authorities,
(b) we have not paid any Central
Excise duty on these goods, and
(c) we have not availed of the Cenvat
facility under the CENVAT Credit Rules, 2001 or any notification issued
thereunder, and
(d)
we have not authorized any supporting manufacturer/job-worker to pay
excise duty and discharge the liabilities and comply with the provisions of
Central Excise (No.2) Rules, 2001, under the proviso to Rule 4(3) of the said
Rules.
We
also undertake that in case it is discovered that the Cenvat facility has been
availed by us or by our supporting manufacturers in respect of these export
goods, we shall return the excess drawback paid to us on the basis of above
declaration.
Exporters�
Signature & Seal ___________________________
ANNEXURE-II
SUPPORTING
MANUFACTURERS�/JOB WORKERS� DECLARATION REQUIRED FOR EXPORTS OF
WOVEN/KNITTED GARMENTS FOR AVAILING HIGHER ALL INDUSTRY RATE OF DRAWBACK.
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1.
Description of the Goods:
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2.
Invoice No. and Date:
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3.
Name and address of the Exporter alongwith the name of the
jurisdictional Central Excise Commissionerate/ Division/Range:
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4.
Name of the Supporting Manufacturer (s)/ Job worker (s) alongwith the
name of the Jurisdictional Central Excise Commissionerate/ Division/
Range:
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5.
Address of the Manufacturing Unit(s)/ Job Work Premises:
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We, M/s. ____________________, the supporting manufacturers/job workers declare
that we
(a) are not registered with Central
Excise authorities,
(b) have not paid any Central Excise
duty on these goods, and
(c) have not availed of the Cenvat
facility under the CENVAT Credit Rules, 2001 or any notification issued
thereunder, and
We
also declare that we have manufactured and supplied these garments to the
above-mentioned exporters.
Supporting
Manufacturers�/ Job Workers� Signature & Seal _________________________
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