Circular No. 34/95-Cus.
dated 6/4/95
F.No. 609/34/95- DBK
Government of India
Ministry of Finance, Department of Revenue
Drawback Directorate, New Delhi

Subject : Duty Drawback – Revised procedure for drawal of samples for the purpose of grant of drawback

        I am directed to invite your attention to Ministry’s F.No. 609/ 284/ 94- DBK (Circular 24/94) dated 12.10.94 prescribing the frequency of drawal of samples for purposes of grant of drawback.

2.    A number of representations have been received from the trade in the Customs House that the requirement of drawing samples from every shipment is causing administrative difficulties, as the number of samples to be drawn have increased manifold running into hundreds per day. This is specially so in the case of SS. 2704 relating to knitwear made of 100% cotton.

3.    The issue has been examined and it has been decided to put some monetary limits with reference to drawal of the samples, which are as under :-

     (I)    If the drawback amount per Shipping Bill is less than Rs. 10,000/- then no sample should be drawn.

(II)    In cases where the drawback per Shipping Bill is between Rs. 10,000/- and Rs. 1 lakh, the drawl of the sample should be governed by the general principles as follows :-

(a)    Products with brand name and brand rate of drawback. Where the goods are exported under brand name of individual manufacturer and in respect of which brand rate  has been prescribed, sample may be drawn once in a year;

(b)    Products with generic names and brand rate of drawback. Where goods are of generic nature but brand rates have been prescribed for an individual exporter, samples may be drawn once in six months;

(c)    Specification based items: Where the rates of drawback prescribed are based on :-

(i)     Certain specifications or technical characteristics

(ii)     Different grades/ count/ deniers (of yarn or fabric) of the same material are subject to different rates of drawback.

(iii)    Where the rate of drawback varies, depending on the content of a material. The sample should be drawn from every consignment. However, sample may be drawn once in 6 months if  any specific certificate is produced from usually  acceptable agencies such as SASMIRA, CLRI, etc.

    III.    Where the amount of drawback per shipping bill is Rs.1 lakh and above, a sample should be drawn in all cases where admissibility of the drawback cannot be decided on the basis of visual examination of the case.

4.    However, in case of 100% cotton knitwear garments falling under SS. 2704 of the existing Drawback Table-

    (i)    No sample need be drawn from each consignment if the Collector of Customs is fully satisfied that such knitwear are made out of 100% cotton as clearly so identifiable by visual inspection.

(ii)    Sample can be drawn at random intervals, say 3 to 6 months, for each exporter and also in case of doubt or where there is special information.

 Sd /-
Sunil Kumar
Director (Drawback)

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Category : Custom Duty (7065)
Type : Circulars (7826) Notifications/Circulars (32348)

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