F.No. S/10-Misc.238/20000

PUBLIC NOTICE No. 64/2000

Sub.: Duty Drawback-All Industry Rates of Drawback effective from 01-06-2000-instruction regarding.

Attention of Imports, Exports, CHAs and other Trade interests is invited to the Ministry of Finance’s Circular No. 52/2000-Cus issued vide their F.No. 609/56/2000 dated 01-06-2000 whereunder New All Industry Rates of drawback effective from 01-06-2000 have been announced following important changes made in the Drawback Schedule are notified in the Public interest.

1. This year 9 new entries have been introduced which include plastic jumbo bags, Handknotted/Handmade Silk and Synthetic Carpets, Copper Cathodes, Mechanical Pencils and two parts of Textile Machinery. This has been done to expand coverage of drawback Scheme.

2. The drawback rates in respect of 141 entries have been increased on account of further rationalisation of the Customs & Central Excise duties carried out in the Union Budget i.e. extention of 4% special Additional Duty (SAD) to all imports whether effected by manufacturers or traders and creation of a single excise duty rate (CENVAT) of 16% for all excisable goods. Apart from this, the upsurge in the prices of various raw materials, especially non-ferrous metals, has also been given due weightage.

3. Drawback Rates relating to 406 entries have been maintained at the existing level.

4. The drawback rates pertaining to 270 entries have been revised downwards to reflect the lower incidence of duties ensuring from rationlisation of Central Excise duties/customs duties, i.e. reduction of peak rate of customs duty to 35% from 40% earlier, and also reduction in Central excise duties in respect of those raw materials which were chargeable to Central excise duty higher than 16%.

5. A maximum drawback cap has been imposed on 141 entries in the Drawback Table with the objective of curbing the tendencies to obtain disproportionate drawback by artificially inflating/misdeclaring export values.

6. As a special measure of facilitation for the Handloom and Cottage sector, the exporters are being allowed to dispense with the requirement of having to furnish the proof of non availment of CENVAT credit on their inputs.

7. Effort has been made to harmonise maximum under of sub-Serial Numbers with the Customs Tariff Headings and to remove the anomalies existing in the earlier Table.

8. A new entry SS 63.062 has been created with a drawback rate of 5% of FOB to distinguish "Undyed Madeups (other than Handloom Madeups)" from the existing SS No. 63.061 relating to all other Madeups which shall be applicable to dyed Madeups (other than Handlooms)

9. The drawback rates in respect of SS Numbers covering Bicycle Parts have been rationalised and made specific instead of the earlier ad valorem rates with drawback caps, Bicycle parts have now been mentioned in alphabetical order for easier reference.

10. Eighteen entries of the previous Table have been deleted.

Importers, Exporters, CHAs and other Trade Interests should take note of the above changes while filling their drawback claims and ensure their diligent adherence.

Sd/- (02-06-2000)
(R. SHARMA)
COMMISSIONER OF CUSTOMS(EP)
MUMBAI.

Attested

Sd/-
(A.K. CHOUDHARY)
DY. COMMISSIONER OF CUSTOMS(DBK)

Presented by eximkey.com