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Regarding admissibility of All Industry Rates of Drawback under SS No.
64.13 (Leather Sandals)
Circular
No. 8 dated 30th January 2002
Council for Leather Exports has
brought to the notice of the Board, the difficulties being encountered by the
exporters of leather sandals at various ports. It has been informed that Customs
Authorities are treating leather sandals as leather chappals and allowing lower
drawback to such goods under SS Nos.64.16-64.18 merely on the ground that the
footwear do not have back straps.
2. It appears that
there is some confusion in the field formations as to what should be categorized
as �Leather Sandals� for the purposes of SS No.64.13-64.15 of the Drawback
Table.
3.
The issue has been examined in the Board.
4. It is clarified
that a Sandal is an open type of footwear having an upper part not covering the
entire foot. The upper part of sandal consists of one or more components such as
strap, vamp and the like and the same are aligned and assembled together by
various methods. The bottom part of the sandal consists of a number of
components such as insole, sole, and an in-built or attached heel of a minimum
thickness of 10 mm. A Sandal may or may not have a back strap.
5. It is also
clarified that Sandals involve usage of quality inputs and also need more finish
and shine. The inputs used in the manufacture of Sandals suffer higher duty
incidence compared to Chappals. That is why drawback rate and cap for Sandals is
much higher compared to Chappals.
6. Field formations,
therefore, should examine the goods in totality by taking into account the
above-mentioned definition as well as the documentary proof submitted including
the catalogue of the products indicating their nomenclature in the trade
parlance.
7. This may be
brought to the notice of the staff concerned and the trade through issuance of
suitable standing order and public notice respectively.
8.
The receipt of the Circular may please be acknowledged.
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