Drawback Circular No. 1/2001-cus
9th January, 2001
F.No. 609/87/99-DBK
Government of India
Ministry of Finance
Department of Revenue
Subject : Duty drawback on handicrafts/articles of composite materials- SS No.73.27 and SS No.74.19/ 191 of the Drawback Table – regarding.
Representations have been received from the trade that the field formations are not permitting drawback to the exports of Handicrafts/ Artwares of composite materials and also on the articles of composite materials, involving brass as a constituent material.
2. The matter has been examined in the Board. It is clarified that the drawback rate for any export product is basically intended to rebate the duties of Customs & Central excise suffered on the inputs used in their manufacture. In respect of handicrafts/articles of iron, the drawback rate reflects only the duty incidence on the main input, i.e., iron. Therefore, if an article/handicrafts is entered for export, and its constituent materials like glass, iron, etc. are visibly identifiable and their declared weight can be easily verified individually, the drawback on iron content can be easily verified individually, the drawback on iron content can be allowed under SS N0. 73.27 and on glass content under SS No.70.02 of the Drawback table.
3. Similarly for the articles of composite materials having brass as an input, the drawback rate under SS No. 74.19/74.191 can be extended to the brass content if such content is visibly distinguishable and its weight unambiguously verifiable. In fact, general Note 16 to the Drawback Table clearly envisages such dispensation.
4. All pending claims of the parties may be decided accordingly.
5. Suitable Public Notice for information of the trade and standing orders for guidance of the staff may kindly be issued on the above lines.
6. Receipt of the Circular may please be acknowledged.
(S.S. Renjhen)
Joint Secretary to the Government of India
