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Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise and Customs
Drawback Division
Circular No. 37/2016 - Customs
New Delhi, dated 13th August 2016
To
Pr. Chief Commissioners/Pr. Directors General
Chief Commissioners/Directors General
Pr. Commissioners/Commissioners
Madam/Sir,
Subject: Special Advance Authorization under para 4.04A of FTP
2015-20 in combination with All Industry Rates (AIRs) of Duty Drawback
Attention of field formations is drawn to the
DGFT Notification No.
21/2015-2020 dated 11th August 2016 which has notified para 4.04A in the FTP
2015-20 providing for duty free pre-import of fabric (including interlining)
only under a Special Advance Authorisation Scheme wherein the said fabric gets
physically incorporated (making normal allowance for wastage) in goods of
Chapter 61 and 62 of ITC(HS) that are physically exported to fulfil the export
obligation. In this Scheme, the exporters can also be eligible for All Industry
Rates of Duty Drawback as specifically determined by Central Government in which
case, for the purpose of value addition norm of para 4.08 of FTP, the value of
any other input used on which benefit of Drawback is claimed or intended to
claimed has been specified in the DGFT notification as equal to 22% of the FOB
value of export realized. However, option to claim drawback determined and fixed
by Central Excise Authority (brand rate) under Rule 7 of the Drawback Rules 1995
remains in which case the value of inputs (other than the fabric imported duty
free under the Special Advance Authorization) continues to be based on actuals.
The notification may be downloaded from dgft.gov.in.
2. To give effect to the Special Advance Authorisation Scheme, the
Notification
No. 45/2016-Customs dated 13th August, 2016 has been issued providing exemption
to fabrics (including interlining) from import duty subject to conditions
specified therein. Further,
Notification No. 110/2016-Customs (NT) dated 13th
August, 2016 has been issued providing, subject to the specified conditions, the
alternative All Industry Rates (AIRs) of drawback in the Drawback Schedule for
the exports made against the Special Advance Authorisation in discharge of
export obligations in terms of
Notification No. 45/2016-Customs dated 13th
August, 2016. These notifications may be downloaded from cbec.gov.in.
3. For the alternative AIRs relevant tariff item has to be suffixed with suffix
‘C’ or suffix ‘D’ for the situation when Cenvat facility has not been availed or
when Cenvat facility has been availed, respectively, instead of the usual suffix
‘A’ or suffix ‘B’. In the option to claim Brand Rate of duty drawback in terms
of rule 7 of the Drawback Rules 1995 with the Special Advance Authorization, the
procedure in Annexure 1 with
Circular No. 29/2015-Cus dated 16.11.2015 has relevance. However,
the exporter shall have to declare the figure ‘9807’ as identifier (in the
shipping bill under the Drawback details) followed by the tariff item number of
the goods as shown in column (1) of the Schedule and followed by the character
‘D’. Based on this, the shipping bill shall be processed for payment of
provisional drawback amount equivalent to the Customs portion of these
alternative AIRs.
4. The above mentioned DGFT and Customs notifications are effective from 1st
September 2016. The CBEC’s Systems Directorate is making all the necessary EDI
related arrangements for implementation including specifying the appropriate new
scheme code that would need to be declared by exporters making exports under the
Special Advance Authorization Scheme cum AIR Drawback and these shall be
publicized to exporters in advance by the Systems Directorate.
5. Suitable public notices and standing order should be issued for guidance of
the trade and officers in terms of this Circular. Difficulties, if any, may be
brought to notice of the Board.
(Dinesh Kumar Gupta)
Director
Tel : 23360581
F.No. 605/42/2016-DBK
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