GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
Notification No. 41/2000-Customs (N.T.)
G.S.R.514 (E) : In exercise of the powers conferred by rule 3, read with rule 4, of the Customs and Central Excise Duties Drawback Rules, 1995 (hereinafter referred to as the said rules) and in super-session of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 31/99-Customs (N.T.), dated the 20th May, 1999 except as respects things done or omitted to be done before such supersession, the Central Government hereby determines the rates of drawback as specified in the Table annexed hereto (hereinafter referred to as the said Table), subject to the conditions specified in the General Notes hereunder ;
Drawback at the rates specified in the said Table shall be applicable only if the procedural requirements for claiming drawback as specified in rules 11, 12 and 13 of the said rules, unless otherwise relaxed by the component authority, are satisfied.
The rates of drawback specified in the said Table shall not be applicable to export of a commodity or product if such commodity or product is -manufactured partly or wholly in a warehouse under section 65 of the Customs Act, 1962 (52 of 1962),manufactured and/or exported in discharge of export obligation against an Advance Licence issued under the Duty Exemption Scheme of the relevant Export and Import Policy :
Provided that where exports are made against value based advance licences, issued on or after 1st April, 1995, in discharge of export obligation in terms of notification No. 79/95-Customs, dated the 31st March, 1995, or against quantity based advance licences issued on or after 1st April 1995 in discharge of obligations in terms of notification No. 80/95-Customs, dated the 31st March, 1995, or against Advance Licences issued on or after 1st April, 1997, in discharge of export obligations in terms of notification No. 31/97 – Customs, dated the 1st April, 1997, or against Duty Free Replenishment Certificate Licence issued in terms of notification No. 48/2000-Cus. dated the 25th April, 2000, drawback at the rate equivalent to Central Excise allocation of rate of drawback specified in the said Table shall be admissible subject to the conditions specified therein :
Provided further that where in terms of the notes given under various Serial/Sub-serial Numbers the reduced rates of drawback as applicable to the exports made against quantity based advance licences have been specified, the said rates shall also be applicable for the exports made against quantity based advance licences issued or or before 31st March, 1995 ;manufactured and/or exported by a unit licensed as hundred percent export oriented unit in terms of the provisions of the relevant Import and Export Policy;
manufactured and/or exported by any of the units situated in Free Trade Zones/Export Processing Zones;
manufactured and/or exported in terms of clause (b) of sub-rule (1) of rule 12 of the Central Excise Rules, 1944;
manufactured and/or exported in terms of clause (b) of sub-rule (1) of rule 13 of the Central Excise Rules, 1944;
manufactured and/or exported availing of the facility under the Duty Entitlement Pass Book Scheme as contained in Paragraph 7.14, read with paragraph 7.17 of the Export and Import Policy 1997-2002.
Provided that nothing contained in clauses (a) to (g) above shall prohibit payment of drawback at a particular rate/amount if it has been specifically authorised under these General Notes or under any Serial/Sub-serial number in the said Table.
Where the export product is not specifically covered by the description of goods in the said Table, the rate of drawback may be fixed, on an application by an individual manufacturer/ exporter in accordance with the Customs and Central Excise Duties Drawback Rules, 1995.
The rates of drawback specified against the various Serial/Sub-Serial numbers in the said Table in specific terms or an ad volerem basis, unless otherwise specifically provided, are inclusive of drawback for packing materials used, if any.
Export goods for which no rates have been specified in the said Table will only be entitled to the drawback on account of the packing material used at the rates applicable to such material under relevant Serial/Sub-Serial number specified in the said Table.
In respect of goods exported in completely knocked down/semi-knocked down condition where an exporter establishes through evidence and so long as it is possible to identify that a complete set of components required for assembling the export product has been shipped, either in one/or more lots, through one or more Ports/Airports/Land Customs Stations, then the drawback rate applicable to the completely assembled unit shall be applicable to such exports subject to such other conditions as are prescribed for the complete unit.
Notwithstanding General Note 6, the goods covered by Serial/Sub-Serial numbers 84.14 to 84.17, 87.08 and 87.50 to 87.52 in the said Table when exported in completely knocked down/semi-knocked down condition, by deletion of certain components/assemblies, the drawback indicated in the relevant Serial/Sub-Serial numbers shall be payable on such goods, subject to the condition that the free onboard value of such goods exported is not less than 80% of the free on board value of the completely assembled unit, and for this purpose, the exporter shall produce evidence, to the satisfaction of the Assistant Commissioner of Customs, of the contemporary free on board value of the relevant completely assembled units.
The term “dyed”, wherever used in the said Table in relation to textile materials, would include yarn/piece dyed/predominantly printed or coloured in the body.
Where specific rates have been provided against any Serial/Sub-Serial no. in the said Table, the drawback shall be payable only if the amount is 1% or more of free on board value, except where the amount of drawback per shipment exceeds five hundred rupees.
The titles of Chapters of the said Table are identical with the titles of the corresponding Chapters of the First Schedule to the Customs Tariff Act, 1975. Further, the Serial/Sub-Serial numbers of the export products in the said Table correspond to the Heading/Sub-heading numbers of the said First Schedule under which the goods of the description similar/identical to the export products are classifiable.
Therefore, unless the context otherwise requires, the scope of the specified export products in column 3 against a Serial/Sub-Serial number in the said Table will be same as the said specified export products would have under the said First Schedule.
The expression “when CENVAT facility has not been availed”, used in the said Table, shall mean that the exporter has to satisfy the following conditions namely :-
The expression declares, and if necessary, establishes to the satisfaction of the Assistant Commissioner of Customs or Central Excise or Deputy Commissioner of Customs or Central Excise, as the case may be, that no CENVAT facility has been availed for any of the inputs used in the manufacture of the export product.
If the goods exported under bond or claim for rebate of Central Excise duty, a certificate from the Superintendent of Customs/Central Excise in charge of the factory of production to the effect that no CENVAT facility for the goods under export, is produced :
Provided that in the case of exports of Handlooms products/Handicrafts (including Handicrafts of Brass Artware) / Finished leather / Grey fabrics and other export products which are unconditionally exempt from the Central Excise duty, the certificate regarding non-availment of CENVAT facility shall not be required.
In case the export products covered under Sub-Serial Nos. 48.03 to 48.09 and 95.01 of the said Table are made of more than one type of paper/board, the drawback rate applicable shall be in proportion to the material content of paper/board used.
Wherever in the said Table the rates are specified with the condition that export product is manufactured out of imported steel only, exporter is required to give a declaration on the shipping bill that the export products are made of imported steel only, duly supported by a certificate from the Superintendent of Central Excise / Customs, having jurisdiction over the factory of production to this effect.
In a case where electric fans, falling under Sub-Serial nos. 84.14 to 84.17 of the said Table, are exported along with regulators falling under Sub-Serial nos. 84.18 and 84.19 of the said Table, then additional drawback shall be payable at the rate specified against Sub-Serial no. 8414.90 of the said Table.
If bicycles/cycle rickshaws, assembled or unassembled falling under Serial/Sub-Serial number 87.52/87.54 of the said Table, are exported along with extra accessories as specified under Serial/Sub-Serial numbers 40.01,40.02, 40.03, 70.01, 73.09, 73.17, 73.19, 82.02, 85.32 and 87.55 to 87.64 of the said Table, then additional drawback shall be payable at the rate specified against the Serial/Sub-Serial number relating to such accessories.
In a case where the export product is covered under Serial/Sub-Serial numbers 74.07, 74.18, 74.20 and 74.21 of the said Table and contains non-brass portion, the rates specified under that Sub-Serial number shall be limited to the brass content only. The rate under Sub-serial no. 74.19 of the said Table shall be applicable to any composite article/or any other article containing brass irrespective of percentage of the brass content.
Wherever a rate has been provided in the said Table subject to the condition of use of imported inputs, such rate shall be payable only when such imported inputs are duty paid.