Drawback Circular No.20/2002-Cus
21st March, 2002

F.No.605/38/2002-DBK

Government of India

Ministry of Finance

Department of Revenue

Subject: Grant of All Industry Rate of Drawback on export of Bicycles under Advance License Scheme- regarding.

 In the Drawback Table 2001-2002, All Industry Rates of Duty Drawback have been notified for “Complete Bicycle ” under SS No. 87.52 and various parts of bicycle under SS No. 87.54 to 87.122. Also separate rates have been made available for bicycle tyres under SS No. 40.01 and bicycle tubes under SS Nos.40.02 and 40.03. These rates are, however, applicable to the normal exports.

2 A representation has been received from the Engineering Export Promotion Council highlighting the peculiar position of exports of complete bicycle under Advance Licence Scheme. Since under the Advance Licence Scheme the exporters have access to duty free inputs, the drawback rates are denied to them in terms of General Note 2 (b) to the Drawback table EEPC has pointed out that there can be many cases of exports of complete bicycle where the exporters might be using only some inputs as imported inputs and rest are all indigenous. Similarly, there can be cases, where the bicycle being exported in devoid of some components as per the buyer”s requirements for the reason that the buyer in the importing country contemplates procuring those inputs either in the said importing country or source the same from some other country. EEPC has requested that in such cases, at least the duty drawback in respect of indigenous inputs can be made available to the exporters instead directing them to follow the brand rate route of drawback.

3 The issue has been examined in the Board.  It has been observed that the all Industry Rate of Duty Drawback in respect of complete bicycle under SS No.87.52 of the Drawback Table, has been determined by taking into account the duty incidence on the follow 22 components.

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