Circular No. 54/2000-Cus

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

New Delhi, the 12TH June, 2000

Subject: Drawback — clarification on silk carpets & synthetic carpets

As a part of rationalisation of All Industry Rate of Duty Drawback, the SS No. 57.01 in Drawback Table, 1999-2000 relating to Floor Coverings, all sorts has been split into three separate SS numbers in Drawback Table, 2000-2001.

2.  SS No. 57.01 is now applicable to Hand-knotted/Hand-made Woollen Floor Coverings only. The newly created SS No. 57.03 is applicable to Hand knotted/Hand made Silk Floor Coverings with a drawback rate of 12% of f.o.b. subject to maximum of Rs. 625/- per sq. metre while SS No. 57.04 is applicable to Hand-knotted/Hand made Synthetic Floor Coverings with a drawback rate of 10% of f.o.b. subject to a maximum of Rs. 175/- per sq. metre.

3.  Silk Floor Coverings now enjoy a higher drawback rate and higher drawback cap compared to the Synthetic Floor Coverings. Therefore, it is possible that some exporters may misdeclare the Synthetic Floor Coverings as Silk Floor Coverings avail of higher drawback benefits, which would defeat the very purpose of rationalisation. All the field formations concerned may, therefore, be advised to observe utmost vigilance and care while processing the consignments or while granting drawback to Silk Floor Coverings and ensure that no unintended benefits accrue to the exporter.

4.   This may be brought to the notice of the staff concerned.

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