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Regarding All Industry Rates of Duty Drawback, 2003-2004
Customs
Circular No. 23 dated 1st April 2003
The
Ministry has announced the revised All Industry Rates of Duty Drawback for the
year 2003-2004 vide notification no. 26/2003-Cus (N.T.) dated 1.4.2003. These
rates shall come into effect from 7.4.2003. Thus the existing rates shall remain
in force till 6.4.2003.
2.
The salient features of the revised rates are as follows: -
(i)
This year, drawback rate for Chassis of motor vehicles has been fixed
vide SS No. 87.43 on the basis of data furnished by the Engineering Export
Promotion Council (EEPC).
(ii) Drawback rates in respect of 401 entries have
been continued at the existing level as there is no change in the duties on the
inputs used in the export products.
(iii) In respect of 403 entries, drawback rates have been
reduced consequent upon reduction in Customs and Central excise duties.
(iv) since the customs duty rates on various inputs in
Leather Industry have remained unchanged, the rates of finished and lining
leather, various leather articles and leather footwear falling under Chapters
41, 42, and 64 of the Drawback Table have been maintained at last year's level.
Few notes have been added in Chapter 42 to clarify the scope of industrial
leather gloves and for classification of leather goods having usage of cotton/
synthetic materials.
(v)
In respect of handloom textiles/ made-ups, made of cotton, the duty
drawback rates have not been changed owing to the retention of central excise
duty on Cotton hank Yarn imposed last year. However, due to reduction in duty on
man-made fibres, new entries have been created for handloom made-ups made of
man-made fibres/ fabrics with lower drawback rates.
(vi) Due to reduction in Central Excise duties on
man-made fibres and their fabrics, the drawback rates have been reduced for
Knitted garments/Knitwears and woven Garments.
(vii) On account of reduction in the duties of Customs
and Central Excise, drawback rates of woollen/ silk/ synthetic carpets have been
reduced.
(viii) The drawback rates of Copper/ Brass Artwares/
Handicrafts/ Hardware have not been altered due to the continuation of earlier
customs duty rates in respect of main raw materials.
(ix) A note has been added under SS. No.87.44 specifying
the inputs, which have been taken into consideration while formulating the duty
drawback rate for complete bicycle. This shall enlighten the field officers to
permit
(x)
field officers to permit drawback on the accessories, which the exporters
may export along with the complete bicycles.
(xi) Consequent upon the recommendations of the Kelkar
Committee, relaxation has been provided in the exports of composite articles.
The General Note 11 to the new Drawback Table shall enable the exporters
to avail drawback on the strength of a declaration only. The field officers
would be permitted to cause verifications in cases of doubt or information only.
3.
In the wake of amendment in the Customs Act, the supplies made to the
special economic zone are now treated at par with the physical exports.
Consequently, rule 2 (c) of the Customs and Central Excise Duties Drawback
Rules, 1995, have bees amended. Accordingly, the exports to special economic
zone shall be eligible for drawback at the rates specified in the Duty Drawback
Table.
4.
All the staff concerned may be advised to go through the changes effected
in the All Industry Rates meticulously. Though all care has been taken while
formulating/ publishing the rates, the possibility of errors/omissions due to
inadvertence cannot be ruled out. It is requested that any error/ omission
noticed during the implementation of the rates may be brought to the notice of
the Department at the earliest for suitable corrective action.
5.
Suitable public notices for information of the Trade and standing orders
for guidance of the staff may kindly be issued accordingly.
6.
The receipt of this Circular may kindly be acknowledged.
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