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Regarding Grant of All Industry Rate of Drawback on Export of Bicycles
under Advance Licence Scheme
Customs Circular Drawback Circular No. 20
dated 21st March 2002
In the Drawback table 2001-2002, All Industry
Rates of Duty Drawback have been notified for �Complete Bicycle� under SS
No.87.52 and various parts of bicycle under SS No.87.54 to 87.122. Also separate
rates have been made available for bicycle tyres under SS No.40.01 and bicycle
tubes under SS Nos.40.02 and 40.03. These rates are, however, applicable to the
normal exports.
2.
A representation has been received from the Engineering Export Promotion
Council highlighting the peculiar position of exports of complete bicycle under
Advance Licence Scheme. Since under the Advance Licence Scheme the exporters
have access to duty free inputs, the Drawback rates are denied to them in terms
of General Note 2(b) to the Drawback table. EEPC has pointed out that there can
be many cases of exports of complete bicycle where the exporters might be using
only some inputs as imported inputs and rest are all indigenous. Similarly,
there can be cases, where the bicycle being exported is devoid of some
components as per the buyer�s requirements for the reason that the buyer in
the importing country contemplates procuring those inputs either in the said
importing country or source the same from some other country. EEPC has requested
that in such cases, at least the duty drawback in respect of indigenous inputs
can be made available to the exporters instead directing them to follow the
brand rate route of drawback.
3.
The issue has been examined in the Board. It has been observed that the
All Industry Rate of Duty Drawback in respect of complete bicycle under SS
No.87.52 of the Drawback Table, has been determined by taking into account the
duty incidence on the following 22 components: -
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S.No.
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SS No.
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Name of the Component
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1.
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40.01
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Tyre (one pair)
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2.
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40.02
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Tube (one pair)
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3.
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73.09
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Chain
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4.
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87.55
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B B Axle
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5.
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87.56
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B B Cups (one set)
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6.
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87.57
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B.B. Ring
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7.
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87.64
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Brake Set
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8.
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87.73
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Chain Wheel &
Cranks
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9.
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87.78
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Fork Fitting (one
set)
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10.
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87.80
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Frame
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11.
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87.84
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Free Wheel
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12.
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87.85
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Front Fork
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13.
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87.88
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Handle Bar
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14.
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87.90
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Handle Stem
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15.
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87.91
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Hub (one pair)
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16.
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87.96
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Mud Guard
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17.
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87.98
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Pedals (one pair)
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18.
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87.104
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Rim
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19.
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87.105
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Saddle
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20.
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87.109
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Seat Pillar
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21.
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87.110
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Seat Pillar Bolt
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22.
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87.112
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Spoke (one gross)
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4.
Since these items are clearly identifiable and have specific drawback
rates, it is possible to deduct the quantum of duty drawback for a component or
components which is/ are either not supplied or is/are imported under DEEC
Advance Licence Scheme, from the total drawback admissible to a complete
bicycle. This dispensation will be easier to administer and shall obviate the
need of applying for a brand rate of duty drawback in such cases.
5.
It is therefore clarified that field formations can allow drawback to the
exports of complete bicycles on the above lines. This circular is also
applicable for the past cases of exports effected from 4.10.2001 onwards.
6.
Suitable public notice for information of the trade and standing orders
for guidance of the staff may kindly be issued accordingly.
7. The
receipt of this Circular may kindly be acknowledged.
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