Cus Ntf No. 67/1998 (NT) dt. 1/9/98
Duty Drawback
This (NT) Notification contains New All Industry (AI) Rates of Drawback effective September
2,1998. The Notif. has been issued in the form of a Book, i.e. "Duty Drawback on Exports". It is available from the Customs Department throughout the country.
The
highlights of the new DBK AI Rates are :
SAD and Special Duty Drawback
The new levy of
4% Special Addl. Customs Duty has also been taken into account alongwith
5% Special Customs Duty applicable on various imported inputs, while fixing the new drawback rates.
Modvat Goods
The major benefit extended to all export products on which modvat is restricted to 95%. It compensates the exporters for the 5% Modvat credit which they cannot otherwise avail. This removes the disability of 5%, which was making inputs costlier to exporters. Central Excise portion of All Industry Rates of Drawback equivalent to 5% of the total Central Excise allocation even where the Modvat has been claimed, will be allowed as drawback.
No longer any need to produce certificate regarding non-availment of modvat availed in respect of export of handloom products, handicrafts including handicrafts of brass artware, finished leather, grey fabrics and other export products which are unconditionally fully exempt from Central Excise duty.
Major Changes in Rates
(1) A cap/maximum limit has been imposed on products having drawback rate above 10%.
(2) The description of handloom products has been revised to include all varieties of
madeups. It will resolve any classification disputes at the cutting edge.
(3) The All Industry Rates of Drawback in the case of exports of garments from EOUs/EPZ units restored which were earlier deleted in Sept. "97.
(4) 6 more items added to the list of 747 items
(5) 219 items get higher rates
(6) Rates for 290 items revised/rationalised
EDI System
In order to ensure smooth and accurate processing of drawback claims in the EDI system each
rate has been assigned a
separate Serial/Sub-serial number .
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