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Duty Drawback - Revised procedure for drawal of samples for the purpose
of grant of drawback
Circular No. 34 dated 6th April 1995
I am directed to invite your attention to Ministry's F.No.
609/ 284/ 94- DBK (Circular 24/94) dated 12.10.94 prescribing the frequency of
drawal of samples for purposes of grant of drawback.
2.
A number of representations have been received from the trade in the
Customs House that the requirement of drawing samples from every shipment is
causing administrative difficulties, as the number of samples to be drawn have
increased manifold running into hundreds per day. This is specially so in the
case of SS. 2704 relating to knitwear made of 100% cotton.
3.
The issue has been examined and it has been decided to put some monetary
limits with reference to drawal of the samples, which are as under: -
(I) If the
drawback amount per Shipping Bill is less than Rs. 10,000/- then no sample
should be drawn.
(II) In cases
where the drawback per Shipping Bill is between Rs. 10,000/- and Rs. 1 lakh, the
drawl of the sample should be governed by the general principles as follows:
(a) Products with brand name
and brand rate of drawback. Where the goods are exported under brand name of
individual manufacturer and in respect of which brand rate has been prescribed,
sample may be drawn once in a year;
(b) Products with generic names and brand rate of
drawback.Where goods are of
generic nature but brand rates have been prescribed for an individual exporter,
samples may be drawn once in six months;
(c) Specification
based items:Where the rates of drawback prescribed are based on: -
(i) Certain
specifications or technical characteristics
(ii) Different grades/ count/ deniers (of yarn or fabric) of the same
material are subject to different rates of drawback.
(iii) Where the rate of drawback varies, depending on the
content of a material.The sample should be drawn from every consignment. However, sample may
be drawn once in 6 months if any
specific certificate is produced from usually acceptable agencies such as
SASMIRA, CLRI, etc.
III. Where the amount of
drawback per shipping bill is Rs.1 lakh and above, a sample should be drawn in
all cases where admissibility of the drawback cannot be decided on the
basis of visual examination of the case.
4. However, in case
of 100% cotton knitwear garments falling under SS. 2704 of the existing Drawback
Table -
(i) No
sample need be drawn from each consignment if the Collector of Customs is fully
satisfied that such knitwear are made out of 100% cotton as clearly so
identifiable by visual inspection.
(ii) Sample can be drawn at random intervals, say
3 to 6 months, for each exporter and also in case of doubt or where there is
special information.
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