Drawback Circular No.11/2002-Cus.
Government of India
Ministry of Finance
Department of Revenue
Subject: All Industry Rate of Drawback in respect of Ready-made Garments – regarding.Online GST Certification Course by TaxGuru & MSME- Click here to Join
Representations have been received from the Apparel Export Promotion Council and the trade in general that the field formations are applying a single drawback rate and drawback cap to the goods which are clearly defined in different entries of the Drawback Table under Chapter 62, on the premise that the same constitute as Set. Trade has, however, resented this practice as it results in grant of lower drawback compared to their actual entitlement..
2. The issue has been examined in the Board. It appears that the field formations are applying the instructions contained in Drawback Circular No.10/2001-Cus dated 23.2.2001.
3. It is clarified here that the Circular No.10/2001-Cus was issued in the perspective of previous Drawback Table i.e2000-2001 when the entries were generic. This was intended to restrict drawback only in respect of Babies’ Garments or certain other Ladies’ Garments which though were exported in sets but availed duty drawback as single garment and had the limitation drawback cap of Rs.65/- per piece i.e. individually. Therefore, it was decided that such garments if packed together and also billed together could be eligible for drawback only as “Sets” and not as individual garments.
4 However, in the current Table2001-2002, many specific entries have been created with individual drawback rates and caps. Moreover, the word ‘Set’ has not been mentioned. Therefore, SS. Nos.62.09 and 62.10 are intended to cover only those items which do not find specific mention SS Nos.62.01 to 62.08 of Chapter 62 of the Drawback Table.
5. Suitable public notice for information of the trade and standing orders for guidance of the staff may kindly be issued accordingly.
6The receipt of this Circular may kindly be acknowledged.