GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 110 / 2014 - CUSTOMS (N.T.)
New Delhi, the 17th November, 2014
G.S.R. 814 (E). In exercise of the powers conferred by sub-section (2) of
section 75 of the Customs Act, 1962 (52 of 1962), sub-section (2) of section 37
of the Central Excise Act, 1944 (1 of 1944), and section 93A and sub-section (2)
of section 94 of the Finance Act, 1994 (32 of 1994), read with rules 3 and 4 of
the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995
(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.98/2013-CUSTOMS (N.T.), dated the 14th September, 2013, published
vide number G.S.R. 632 (E), dated the 14th September, 2013, except as respects
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:
- 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 said First Schedule
to the Customs Tariff Act, 1975.
- The General Rules for the Interpretation of the First Schedule to
the said Customs Tariff Act, 1975 shall mutatis mutandis apply for
classifying the export goods listed in the said Schedule.
- Notwithstanding anything contained in the said Schedule, -
(i) all artware 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, 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.
- The figures shown in columns (4) and (6) 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.(ii)
- The figures shown in columns (5) and (7) in the said Schedule
refer to the maximum amount of drawback that can be availed of per unit
specified in column (3).
- An export product accompanied with application for removal of
excisable goods for export (ARE-1) and forming part of project export
(including turnkey export or supplies) for which no figure is shown in
column (5) and (7) 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) or (6) to one and half times the ARE- 1
value.
- The figures shown in the said Schedule under the drawback rate and
drawback cap appearing below the column heading “Drawback when Cenvat
facility has not been availed” refer to the total drawback (Customs, Central
Excise and Service Tax component put together) allowable and those appearing
under the column heading “Drawback when Cenvat facility has been availed”
refer to the drawback allowable under the Customs component. The difference
between the two columns refers to the Central Excise and Service Tax
component of drawback. If the rate indicated is the same in both the
columns, it shall mean that the same pertains to only Customs component and
is available irrespective of whether the exporter has availed of Cenvat
facility or not.
- 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.
- Drawback at the rates specified in the said Schedule shall be
applicable only if the procedural requirements for claiming drawback as
specified in rules 11, 12 and 13 of the said rules, unless otherwise relaxed
by the competent authority, are satisfied.
- 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 Licence or Advance Authorisation or Duty Free Import Authorisation
issued under the Duty Exemption Scheme of the relevant Export and Import
Policy or the Foreign Trade Policy:
Provided that where exports are made against Advance Licences issued on or
after the 1st April, 1997, in discharge of export obligations in terms of
notification No. 31/97 - Customs, dated the 1st April, 1997, or against Duty
Free Replenishment Certificate Licence issued in terms of
notification No.
48/2000-Customs, dated the 25th April, 2000, or against Duty Free
Replenishment Certificate Licence issued in terms of notification No.
46/2002-Customs, dated the 22nd April, 2002, or against Duty Free
Replenishment Certificate Licence issued in terms of
notification No.
90/2004-Customs, dated the 10th September, 2004, drawback at the rate
equivalent to Central Excise allocation of rate of drawback specified in the
said Schedule shall be admissible subject to the conditions specified
therein;
(c) manufactured or exported by a unit licensed as hundred per cent. Export
Oriented Unit in terms of the provisions of the relevant Export and Import
Policy or the 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;(iii)
(e) manufactured or exported availing the benefit of the
notification No.
32/1997–Customs, dated 01st April, 1997.
- The rates and caps of drawback specified in columns (4) and (5) of
the said schedule shall not be applicable to export of a commodity or
product if such commodity or product is –
(a) manufactured or exported by availing the rebate of duty paid on
materials used in the manufacture or processing of such commodity or product
in terms of rule 18 of the Central Excise Rules, 2002;
(b) manufactured or exported in terms of sub-rule (2) of rule 19 of the
Central Excise Rules, 2002.
- Wherever specific rates have been provided against tariff item in the
said Schedule, the drawback shall be payable only if the amount is one per
cent. or more of free on board value, except where the amount of drawback
per shipment exceeds five hundred rupees.
- The expression “when Cenvat facility has not been availed”, used
in the said Schedule, shall mean that the exporter shall satisfy the
following conditions, namely:-
(a) the exporter shall declare, and if necessary, establish to the
satisfaction of the Assistant Commissioner of Customs or Assistant
Commissioner of Central Excise or Deputy Commissioner of Customs or Deputy
Commissioner of Central Excise, as the case may be, that no Cenvat facility
has been availed for any of the inputs or input services used in the
manufacture of the export product;
(b) if the goods are exported under bond or claim for rebate of duty of
central excise, a certificate from the Superintendent of Customs or
Superintendent of Central Excise in-charge of the factory of production, to
the effect that no Cenvat facility has been availed for any of the inputs or
input services used in the manufacture of the export product, is produced:
Provided that the certificate regarding non-availment of Cenvat facility
shall not be required in the case of exports of handloom products or
handicrafts (including handicrafts of brass artware) or finished leather and
other export products which are unconditionally exempt from the duty of
central excise.
- 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.
- The term ‘article of leather’ in Chapter 42 of the said Schedule shall
mean any article wherein 60% or more of the outer visible surface area
(excluding shoulder straps or handles or fur skin trimming, if any) is of
leather notwithstanding that such article is made of leather and any other
material.
- 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.
- The term “dyed” in relation to fabrics and yarn of cotton, shall
include “bleached or mercerised or printed or mélange’’.
- The term “dyed” in relation to textile materials in Chapters 54
and 55 shall include “printed or bleached”.(iv)
- 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 man-made 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.
- The term “shirts” in relation to Chapters 61 and 62 of the said Schedule
shall include “shirts with hood”.
- 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.
- 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: -
(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.
- 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 4A.12 of the Hand Book of Procedures (Vol. I), 2009-2014 published vide
Public Notice No.1 (RE-2012) / 2009-2014, dated the 5th June, 2012 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.
- 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 relevant Export and Import Policy or the Foreign Trade Policy
of the Government of India which provides for duty free import or
replenishment or procurement from local sources of gold or silver.
- “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. This notification shall come into force on the 22nd day of November, 2014.
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