Circular No.64/2001-Customs.
19th November, 2001.

F.No.609/107/2001-DBK
Government of India
Ministry of Finance
Department of Revenue

Subject: Problems faced by Merchant Exporters regarding availment of drawback on garments – regarding.

Attention is invited to Ministry’s Circular No.54/2001-Cus. dated 19.10.2001 issued to address the specific problems of merchant-manufacturer exporters of garments in claiming duty drawback.

2.Representations have been received from the trade requesting for clarifying certain issues for the proper implementation of the true spirit of the said Circular. These issues have been examined in detail.

3. There is some misapprehension in the field formations that in respect of the manufacturer exporters of ready-made garments, it is mandatory to furnish a certificate regarding non-availment of Cenvat certificate / ARE-1. It is clarified here that since the procedure for the merchant exporters has been relaxed, there is no logic in disallowing a similar facility to the manufacturer exporter. Therefore, it would be sufficient if the manufacturer exporter gives a declaration that he is not paying any Central Excise duty and not availing the Cenvat facility. The format prescribed in Annexure-I can also be used by a manufacturer exporter. Commissioner of Customs shall get the veracity of the declaration given by the exporter verified from the Central Excise authorities by following the same criteria / procedure laid down in paragraph 8 of the above referred Circular.

4. Certain trade bodies are under the impression that the name of the supporting manufacturer / job worker has to be mentioned in the exporter’s invoice. It is clarified here that the exporter has to only give a declaration as prescribed in Annexure-I and Annexure-II to the above mentioned Circular.

5. Trade has represented that the conditions laid down in paragraph 6 and Annexure-II of the Circular are restrictive as they restrict the job worker / supporting manufacturer to manufacture garments only for a particular merchant exporter. Accordingly, it is clarified that no such restriction can be placed on job worker /supporting manufacturer and, therefore, the Annexure -II has been suitably amended to delete the words ‘only’. However, while giving the declaration in Annexure-II, both the merchant exporter and his supporting manufacturer/job worker have to ensure that in respect of garments manufactured and supplied to the merchant exporter , Cenvat facility is not availed. In the event of any mis-declaration in this regard, the higher drawback amount paid shall be recovered. The revised Annexure-II is enclosed.

6. It is also clarified here that Circular No.54/2001-Cus and the present Circular are applicable to all the past cases of similar nature where the exports have already been effected and these should be applied accordingly. For all the earlier cases, where the exporters could not give a declaration regarding their supporting manufacturers/job workers, the declarations provided in Annexure-I and Annexure-II can be furnished now to the Customs authorities. The Customs authorities shall process the pending drawback claims on the basis of these declaration. Commissioner of Customs shall get the veracity of these declarations verified by following the same procedure as is detailed in paragraph 8 of the earlier Circualr No.54/2001-Cus dated 19.10.2001.

7. Suitable public notices for the trade and standing orders for the staff concerned may be issued at your end.

(S.S. Renjhen)
Joint Secretary to the Government of India
Tel. No.3341079

ANNEXURE-II

Supporting Manufacturers’/Job Workers’ Declaration required for Exports of Woven Garments for availing higher All Industry Rate of Drawback. (Circular No.54/2001-Cus, dated 19th October,2001)

1 Description of the Goods:

2 Invoice No. and Date:

3 Name and addres s of the Exporter alongwith the name of the Jurisdictional Central Excise Commissionerate/Division/Range:

4 Name of the Supporting Manufacturer (s) / Job worker ( s) alongwith the name of the Jurisdictional Central Excise Commissionerate/ Division/Range:

5 Address of the Manufacturing Unit(s)/ Job Work Premises:

We, M/s. _________________, the supporting manufacturers / job workers declare that we

(a) are not registered with Central Excise authorities,

(b) have not paid any Central Excise duty on these goods, and

(c) have not availed of the Cenvat facility under the CENVAT Credit Rules, 2001 or any notification issued thereunder, and

We also declare that we have manufactured and supplied these garments to the above mentioned exporters.

Supporting Manufacturers’/Job Workers’ Signature & Seal

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Category : Custom Duty (6698)
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