Circular No. 52/2000-Cus

F.NO 609/56/2000-DBK
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

New Delhi, the 1st June, 2000

Subject: Drawback – A.I. rates effective from 1.6.2000 – instructions regarding

  The Ministry has announced the new All Industry Rates of Drawback vide Notification No. 41/2000-Customs (NT) dated 1.6.2000. These rates will come into effect from 1.6.2000. The old drawback rates would be applicable till 31.5.2000. Following are the significant features of the new Drawback Table:-

  1. This year 9 new entries have been introduced which include Plastic Jumbo Bags, Hand-knotted/Handmade Silk and Synthetic Carpets, Copper Cathodes, Mechanical Pencials and two parts of Textile Machinery. This has been done to expand the coverage of Drawback Scheme.

2. The drawback rates in respect of 141 entries have been increased or account of further rationalisation of the Customs & Central Excise duties carried out in the Union Budget, i.e. extendion of 4% Special Additional Duty (SAD) to all imports whether effected by manufactueres of traders, and creation of a single Excise duty rate (CENVAT) of 16% for all excisable goods. Apart from this, the upsurge in the prices of various raw materials, especially non-ferrous metals, has also been given due weightage.

3. Drawback Rates relating to 406 entries have been maintained at the existing level.

4. The drawback rates pertaining to 270 entries have been revised downwards to reflect the lower incidence of duties ensuring from rationalisation of Central Excise duties/Customs duties, i..e., reduction of peak rate of Customs duty to 35% from 40% earlier, and also reduction in Central Excise duties/Customs duties, i.e., reduction of peak rate of Customs duty to 35% from 40% earlier, and also reduction in Central Excise duties in respect of those raw materials which were chargeable to Central Excise duty higher than 16%.

5. A maximum drawback cap has been imposed on 141 entries in the Drawback Table with the objective of curbing the tendencies of unscrupulous exporters to obtain disproportionate drawback by artificially inflating/misdeclaring their export values.

6. As a special measure of facilitation for the Handloom and Cottage Sector, the exporters are being allowed to dispense with the requirement of having to furnish the proof of non-availment of CENVAT credit on their inputs.;

7. It has been endeavoured to harmonise maximum number of Sub-serial Numbers with the Customs Tariff Headingts and to remove the anomalies existing in the earlier Table.

8. A new entry SS No. 63.062 has been created with a drawback rate of 5% of f.o.b. to distinguish ‘Undyed Madeups (Other than Handloom Madeups)’ from the existing SS No. 63.061 relating to ALI Other Madeups which shall be applicable to Dyed Madeups (Other than handlooms).

9. The drawback rates in respect of SS Numbers covering Bicycle Parts have been rationalised and made specific instead of the earlier ad valorem rates with drawback caps. Bicycle parts now been mentioned in alphabetical order for easier reference.

10.Eighteen entries of the previous Table have been deleted.

  Commissioners are requested to closely monitor the drawback payments under the revised headings and wherever any excessive variation of amounts being disbursed are noticed, the same may be immediately brought to the notice of the Ministry through a separate reference.

 All the staff concerned may be advised to go through the canges effected in the All Industry Rates meticulously to obviate any possible error. Any difficulties encountered in the implementation of drawback rates and discrepancy of any sort may please be brought to the knowledge of the undersigned by name either through Telex of Fax Message or by D.O.letter.

 The canges effected may please be given wide publicity through issuance of suitable Public Notice, especially keeping in mind the aspects highlighted in the Press Note. Suitable Standing Orders may also be issued to inform the field officers and the staff concerned. Copies of annexures to the Public Notice which are relevant for the EDI system have already been updated and sent separately.

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