Cus Cir No. 64/2001 Date 19/11/2001

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 addressthe specific problems of merchant-manufacturer exporters of garments in claiming dutydrawback.

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

3.There is some misapprehension in the field formations that in respect of the Manufacturerexporters of ready-made garments, it is mandatory to furnish a certificate regarding non-availmentof Cenvat certificate / ARE-1. It is clarified here that since the procedure for themerchant exporters has been relaxed, there is no logic in disallowing a similar facility to themanufacturer exporter. Therefore, it would be sufficient if the manufacturer exporter gives adeclaration 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. Commissionerof Customs shall get the veracity of the declaration given by the exporter verified from theCentral Excise authorities by following the same criteria / procedure laid down in paragraph 8 ofthe 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 hasto only give a declaration as prescribed in Annexure-I and Annexure-II to the above mentionedCircular.

5. Trade has represented that the conditions laid down in paragraph 6 and Annexure-II of theCircular are restrictive as they restrict the job worker/supporting manufacturer to manufacturegarments only for a particular merchant exporter. Accordingly, it is clarified that no suchrestriction can be placed on job worker / supporting manufacturer and, therefore, the Annexure-IIhas been suitably amended to delete the words ‘only’. However, while giving the declaration inAnnexure-II, both the merchant exporter and his supporting manufacturer/job worker have toensure that in respect of garments manufactured and supplied to the merchant exporter, Cenvatfacility is not availed. In the event of any mis-declaration in this regard, the higher drawbackamount 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 toall the past cases of similar nature where the exports have already been effected and these shouldbe applied accordingly. For all the earlier cases, where the exporters could not give a declarationregarding 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 shallprocess the pending drawback claims on the basis of these declaration. Commissioner ofCustoms shall get the veracity of these declarations verified by following the same procedure asis detailed in paragraph 8 of the earlier Circular No.54/2001-Cus dated 19.10.2001.

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

Sd/-
(S.S.Renjhen)
Joint Secretary to the Government of India

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 address 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 garments to the above mentioned exporters.





Supporting Manufacturers’/Job Workers’ Signature & Seal



(Please refer Cus Cir No.43/2002 Date 19/07/2002)



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