Drawback Circular No.19 /2002-Cus.
15th March, 2002

F.No.609/80/2001-DBK
Government of India
Ministry of Finance
Department of Revenue

Sub: All Industry Rates of Drawback, 2001-2002 – amendment- regarding.

The All Industry Rate of Duty Drawback Table notified on 1.6.2001, was last amended on 26.11.2001 vide notification No.60/2001-Cus. (N.T.), whereby among other entries the Drawback Rates for Ready-Made and Embroidered garments falling under SS.Nos. 62.23 and 62.24 of the Table were increased.

2. Representations have been received from the Indian Silk Export Promotion Council that since the basic raw material in all the silk products and fabrics is ‘raw silk’ only, the rates of these items too merit increase on the same principle as has been applied n the case of garments.

3. The issue has been examined in the Ministry. It is a fact that for the fixation of drawback rates for various silk products, garments, made-ups and fabrics the duty incidence is computed on the raw silk used. Therefore, it is logical to increase the rates of fabrics and made ups of silk by adopting the same principle as was applied for improving the rates of garments on 26.11.2001, vide notification No.60/2001-Cus(N.T.). Accordingly the Central Government has revised the rates for the silk fabrics falling under SS.No.50.01, handloom/powerloom lungies made of silk falling under SS.No.62.28 and Silk made-ups falling under SS.No.62.30, through the notification No.19/2002-Cus.(N.T.) dated 15 March,2002.

4. Further the Council has also represented that as basically the duty is being rebated by way of drawback only on the input raw silk on per kg. basis, the mandatory usage of imported beads and sequins is resulting in unnecessary problems at the operational level and hence the same be deleted.After examining the issue, the description of the entry at SS.No.62.24 has been amended by deleting the words ‘imported beads and sequins’ through the notification of 15th March, 2002.

5. It is also clarified that this notification shall be applicable from 26.11.2001.Therefore, it is quite possible that the exporters shall approach the Customs Formations with supplementary drawback claims. All the pending claims and supplementary claims be settled accordingly.

6. Suitable public notice for information of trade and standing orders for guidance of the staff may be issued for implementing this notification.

7. The receipt of this Circular may kindly be acknowledged.

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