Circular No.8/2002-Cus.
30th January, 2002.

Government of India
Ministry of Finance
Department of Revenue

Sub: Admissibility of All Industry Rates of Drawback under SS No.64.13(Leather Sandals)- regarding.

 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 categorised 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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