Drawback Circular. No. 49/96-Cus.
dated 22/10/96
F.No. 609/527/96-DBK
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject :  Duty Drawback -All Industry rates of Drawback, effective from 23.10.1996

The Ministry has announced new All Industry rates of Drawback effective from 23.10.1996, vide Notification No. 49/96-Cus. (NT), dated 22.10.1996.

2. As a part of on- going exercise of simplification of Customs procedure relating to exports as well as entries in the Drawback Table, they have been amended so as to redesigned the entries in 7 digits to provide expanded description of export products. This effort has been made with a view to removing doubts and ambiguities.

3.  Similarly, 158 foot-notes specified in varous-chapter and headings in the existing Drawback Table have been incorporated in the relevant entries them- selves so as to further facilitate electronic processing of drawback claims. The existing General Notes have been expanded from 11 to 17 so as to cover different situations under which All Industry Rates of Drawback is to be disbursed. The description of several export products have been made specific in order to avoid any ambiguity in classification.

4. In respect of Ready-Made Germents, broad banding of drawback rates have been attempted so as to reduce the incidence of drawal of samples and their testing besides benefiting a larger section of exporters. For instance, a single rate of drawback on export of ready made garments manufactured out of all types of woven fabrics and ready-made garments made out of all types of knitted fabrics have been provided. Like-wise rates for such garments as well as all other made-up articles of over invoicing of export of these garments. Similar cap has been imposed in respect of 100% polyester filament fabrics as well as man- made spun fabrics.

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5. In case of made-up articles made from textile fabrics, the Central Excise duty incidence suffered on the fabrics has been considered while working out the rates of drawback. Therefore, the existing note has been deleted in order to remove the ambiguity in the admissibility of the All Industry Rates of Drawback on such export products.

6. Currently, the inputs imported under DEEC scheme have to suffer the addl. Customs duty and as such the benefit of Central Excise duty scheme on their inputs even when the goods have been imported under DEEC Scheme shall continue to get the drawback.

7.  Customs & Central Excise Duties Drawback Rules have been amended to provide that drawback will be determined / paid even if the drawback amount is less then 1% of f.o.b. value of export. It has also been decided to extend the simplified scheme for payment of Brand Rates of Drawback to registered partners, ship firms in addition to limited companies who were hitherto availing this facility.

8.  Net effect of the changes made in the Drawback Table will be as under :-

1.  16 new export products have been added.

2.On 402 export products, existing drawback rates have been improved.

3. On 78 export products, existing drawback rates have been continued.

4. On 106 export products, existing drawback rates have been reduced.

5. Items where FOB rates have been converted into specific rates or vice versa.

(S.P. Srivastav)
Commissioner (DBK)

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Category : Custom Duty (6630)
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