GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)
Notification No. 89/2017-CUSTOMS (N.T.)
New Delhi, the 21st September, 2017
G.S.R. (E). – In exercise of the powers conferred by sub-section (2) of
section 75 of the Customs Act, 1962 (52 of 1962) and sub-section (2) of section
37 of the Central Excise Act, 1944 (1 of 1944), read with rules 3 and 4 of the
Customs and Central Excise Duties Drawback Rules, 2017 (hereinafter referred to
as the said rules) and in supersession of the notification of the Government of
India in the Ministry of Finance (Department of Revenue)
No. 131/2016-Customs (N.T.), dated the 31st October, 2016, published vide number G.S.R. 1018(E),
dated the 31st October, 2016, except as respect to things done or omitted to be
done before such supersession, the Central Government hereby determines the
rates of drawback as specified in the Schedule annexed hereto (hereinafter
referred to as the said Schedule) subject to the following notes and conditions,
namely :-
Notes and conditions. -
(1) The tariff items and descriptions of goods in the said Schedule are
aligned with the tariff items and descriptions of goods in the First Schedule to
the Customs Tariff Act, 1975 (51 of 1975) at the four-digit level only. The
descriptions of goods given at the six digit or eight digit or modified six or
eight digits in the said Schedule are in several cases not aligned with the
descriptions of goods given in the First Schedule to the Customs Tariff Act,
1975.
(2) The general rules for the interpretation of the First Schedule
to the Customs Tariff Act, 1975 shall, mutatis mutandis, apply for classifying
the export goods listed in the said Schedule.
(3) Notwithstanding
anything contained in the said Schedule, -
(i) all art-ware or handicraft
items shall be classified under the heading of artware or handicraft (of
constituent material) as mentioned in the relevant Chapters;
(ii) any
identifiable ready to use machined part or component predominantly made of iron,
steel or aluminium, made through casting or forging process, and not
specifically mentioned at six digit level or more in Chapter 84 or 85 or 87,
except those classifiable under heading 8432 or 8433 or 8436, may be classified
under the relevant tariff item (depending upon material composition and making
process) under heading 8487 or 8548 or 8708, as the case may be, irrespective of
classification of such part or component at four digit level in Chapter 84 or 85
or 87 of the said Schedule;
(iii) the sports gloves mentioned below
heading 4203 or 6116 or 6216 shall be classified in that heading and all other
sports gloves shall be classified under heading 9506.
(4) The figures
shown in column (4) in the said Schedule refer to the rate of drawback expressed
as a percentage of the free on board value or the rate per unit quantity of the
export goods, as the case may be.
(5) The figures shown in column (5) in
the said Schedule refer to the maximum amount of drawback that can be availed of
per unit specified in column(3).
(6) An export product accompanied with a
tax invoice and forming part of project export (including turnkey export or
supplies) for which no figure is shown in column (5) in the said Schedule, shall
be so declared by the exporter and the maximum amount of drawback that can be
availed under the said Schedule shall not exceed the amount calculated by
applying ad-valorem rate of drawback shown in column (4) to one and half times
the tax invoice value. (7) The rates of drawback specified against the
various tariff items in the said Schedule in specific terms or on ad valorem
basis, unless otherwise specifically provided, are inclusive of drawback for
packing materials used, if any.
(8) Drawback at the rates specified in
the said Schedule shall be applicable only if the procedural requirements for
claiming drawback as specified in rule 12, 13 and 14 of the said rules, unless
otherwise relaxed by the competent authority, are satisfied.
(9) The
rates of drawback specified in the said Schedule shall not be applicable to
export of a commodity or product if such commodity or product is -
(a)
manufactured partly or wholly in a warehouse under section 65 of the Customs
Act, 1962 (52 of 1962);
(b) manufactured or exported in discharge of
export obligation against an Advance Authorisation or Duty Free Import
Authorisation issued under the Duty Exemption Scheme of the relevant Foreign
Trade Policy : Provided that where exports are made against Special Advance
Authorisation issued under paragraph 4.04A of the Foreign Trade Policy
2015-20 in discharge of export obligations in terms of
Notification No.
45/2016-Customs, dated 13th August, 2016, the rates of drawback specified in the
said Schedule shall apply as if in the said Schedule, the entries in columns (4)
and (5) against the Tariff items in the said Schedule below all Chapters, except
Chapter 61 and 62, are NIL, and those in Chapters 61 and 62 are as specified in
the Table annexed hereto;
(c) manufactured or exported by a unit licensed
as hundred per cent Export Oriented Unit in terms of the provisions of the
relevant Foreign Trade Policy;
(d) manufactured or exported by any of the
units situated in Free Trade Zones or Export Processing Zones or Special
Economic Zones;
(e) manufactured or exported availing the benefit
of the notification No. 32/1997-Customs, dated 1st April, 1997.
(10)
Whenever a composite article is exported for which any specific rate has not
been provided in the said Schedule, the rates of drawback applicable to various
constituent materials can be extended to the composite article according to net
content of such materials on the basis of a self-declaration to be furnished by
the exporter to this effect and in case of doubt or where there is any
information contrary to the declarations, the proper officer of customs shall
cause a verification of such declarations.
(11) The term ‘article of
leather’ in Chapter 42 of the said Schedule shall mean any article wherein
(a) 60% or more of the outer visible surface area; or
(b) 60% or
more of the outer and inner surface area taken together, excluding shoulder
straps or handles or fur skin trimming, if any, is of leather not with standing
that such article is made of leather and any other material.
(12) The
term “dyed”, wherever used in the said Schedule in relation to textile
materials, shall include yarn or piece dyed or predominantly printed or coloured
in the body.
(13) The term “dyed” in relation to fabrics and yarn of
cotton, shall include “bleached or mercerised or printed or melange”.
(14) The term “dyed” in relation to textile materials in Chapters 54 and 55
shall include “printed or bleached or melange”.
(15) In respect of the
tariff items in Chapters 60, 61, 62 and 63 of the said Schedule, the blend
containing cotton and man-made fibre shall mean that content of man-made fibre
in it shall be more than 15% but less than 85% by weight and the blend
containing wool and man-made fibre shall mean that content of manmade fibre in
it shall be more than 15% but less than 85% by weight. The garment or made-up of
cotton or wool or man-made fibre or silk shall mean that the content in it of
the respective fibre is 85% or more by weight.
(16) The term “shirts” in
relation to Chapters 61 and 62 of the said Schedule shall include “shirts with
hood”.
(17) In respect of the tariff items appearing in Chapter 64 of the
said Schedule, leather shoes, boots or half boots for adult shall comprise the
following sizes, namely : -
(a) French point or Paris point or
Continental Size above 33;
(b) English or UK adult size 1 and above; and
(c) American or USA adult size 1 and above.
(18) In respect of the
tariff items appearing in Chapter 64 of the said Schedule,
leather shoes,
boots or half boots for children shall comprise the following sizes, namely :-iv
(a) French point or Paris point or Continental Size upto 33;
(b) English or UK children size upto 13; and
(c) American or USA children
size upto 13.
(19) The drawback rates specified in the said Schedule
against tariff items 711301, 711302 and 711401 shall apply only to goods
exported by airfreight, post parcel or authorised courier through the Custom
Houses as specified in para 4.72 of the Hand Book of Procedures, 2015-2020
published vide Public Notice No. 1/2015-2020, dated the 1st April, 2015 of the
Government of India in the Ministry of Commerce and Industry, after examination
by the Customs Appraiser or Superintendent to ascertain the quality of gold or
silver and the quantity of net content of gold or silver in the gold jewellery
or silver jewellery or silver articles.
The free on board value of any
consignment through authorised courier shall not exceed rupees twenty lakhs.
(20) The drawback rates specified in the said Schedule against tariff items
711301, 711302 and 711401 shall not be applicable to goods manufactured or
exported in discharge of export obligation against any Scheme of the
relevantForeign Trade Policy of the Government of India which provides for duty
free import or replenishment or procurement from local sources of gold or
silver.
(21) “Vehicles” of Chapter 87 of the said Schedule shall comprise
completely built unit or completely knocked down (CKD) unit or semi knocked down
(SKD) unit.
2. All claims for duty drawback at the rates of drawback
notified herein shall be filed with reference to the tariff items and
descriptions of goods shown in columns
(1) and (2) of the said Schedule
respectively. Where, in respect of the export product, the rate of drawback
specified in the said Schedule is Nil or is not applicable, the rate of drawback
may be fixed, on an application by an individual manufacturer or exporter in
accordance with the said rules. Where the claim for duty drawback is filed with
reference to tariff item of the said Schedule and it is for the rate of drawback
specified herein, an application, as referred under sub-rule
(1) of rule
7 of the said rules shall not be admissible.
3. The amount referred in
sub-rule (3) of rule 7 of the said rules, relating to provisional drawback
amount as may be specified by the Central Government, shall be equivalent to the
drawback rate and drawback cap shown in column (4) and (5) in the said Schedule
for the tariff item corresponding to the export goods, if applicable, and
determined as if it were a claim for duty drawback filed with reference to
such rate and cap.
4. This notification shall come into force on the 1st
day of October, 2017.
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