Circular No. 77/2001-Custom

7th December, 2001

Government of India
Ministry of Finance
Department of Revenue

Sub: Market verification of Ready- made Garments for duty drawback disbursement- regarding.

A number of representations been received from the Trade that the field formations are resorting to routine market verification respect of garments on the premise that the same are over-valued. This causes harassment and avoidable delay in exports.

2 The issue has been examined in the Board. It is clarified that there are separate drawback entries with drawback rates and caps for different categories of garments in the Drawback Table. These caps by and large are sufficient to take care of any attempts by the exporters to over value the exports. The field formations should not resort to any indiscriminate and routine market verification of garment exports. Market verification should be undertaken only in very suspect cases and especially where there is blatant export of sub-standard goods. Market verification can also be initiated in select cases in respect of consignments entered for export to sensitive destinations.

3.  This should be ensured that the market verifications are expeditiously concluded and the drawback claims are settled at the earliest and at the most within three months from the date of the entry of the goods for export.

4.This may be brought to the notice of the staff concerned and trade through issuance of suitable standing order and public notice. Also kindly acknowledge the receipt of this Circular.

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Category : Custom Duty (6694)
Type : Circulars (7563) Notifications/Circulars (30678)

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