Circular No. 9/2003-Cus
17th February 2003
F.No.609/162/2002-DBK
Government of India
Ministry of Finance & Company Affairs
Department of Revenue
Sub: Duty Drawback on Composite Items – regarding.
Attention is invited to General Note 11 to Customs Notification No.33/2002-Cus (N.T.) dated 29.5.2002 . In terms of the said note, if a composite article is exported for which any specific rate has not been provided in the Duty Drawback Table, duty drawback can be extended to the composite articles according to the net content of various constituent materials at the rate of duty drawback applicable to such materials in the Drawback Table. However, such extension of drawback is subject to the condition that various constituent materials are visibly distinguishable and their weights unambiguously verifiable.
2. The trade has however been representing that on occasions it becomes difficult to resolve the composite article into its constituent components and the only alternative is to break the article. This results in wastage of the products and also the exporters are asked to go for laboratory testing to ascertain the composition of individual materials.
3. This issue has been considered by the Kelkar Committee and based on its recommendations, the Board has decided that as a general policy, the weight of the constituent materials in a composite item as declared by the exporters should be accepted. The verification can be caused only in cases of doubt or if there is intelligence to the contrary.
4. Suitable public notices for information of the Trade and standing orders for guidance of the staff may kindly be issued accordingly.
5. The receipt of this Circular may kindly be acknowledged.
Declaration to be given by Manufacturer Exporters or Merchant Exporters with Supporting Manufacturers for availing All Industry Rates of Drawback.
1. Description of the Goods:
2. Invoice No. and Date:
3. Name and address of the Exporter alongwith the name of the Jurisdictional Central Excise Commissionerate/Division/Range:
4. Name of the Supporting Manufacturer (s) / alongwith the name of the Jurisdictional Central Excise Commissionerate / Division/Range:(FOR MERCHANT EXPORTERS).
5. Address of the Manufacturing Unit(s):
We, M/s. _________________ , the Exporters of the above mentioned goods, hereby declare that
| (a) | we are manufacturer exporters and are not registered with Central Excise and have not paid any Central Excise duty on these goods, |
| Or | |
| we are merchant exporters and our supporting manufacturer (s) whose details are given above at S.No.4 are not registered with the Central Excise, and have not paid any Central Excise duty on these goods, and | |
| (b) | we further declare that we or our supporting manufacturers have not availed of Cenvat facility in respect of these export goods. |
Exporters’ Signature & Seal
