PUBLIC NOTICE NO.35/2001, Dt.20/03/2001

Industry rates of drawback on man-made fabrics under Advance Lincence/DEEC Scheme and DFRC Schemes.-reg. Attention of all exporters/Cha and all concerned is invited to customs Circular No.03/2001 dated 16.01.2001 wherein clarification has been recived regarding Admissibility of all industry rates of drawback in rerspect of man-made fabrics falling under chapter 54,55 and 58 of the Drawback table and exported under Advance Lincence/DEEC Scheme and DFRC Schemes.

Certain expoeters of man-made powerloom processed fabrics are using the input “Grey Fabric” imported under Advance Lincence/DEEC Scheme and DFRC cum DBK Scheme and are availing C. Excise allocation of All Industry Rates (AIR) of Drawback, available ot such man-made fabrics, This facility is being availed despite the fact that the input “Grey Fabric"

The issue has been examined and it is clarified that AIR of Drawback for any export product are determined by taking into consideration the duty incidence on various input sed in the manufacture of such goods. As such the AIR of DBK for man made fabrics falling under 54,55 and 58 of DBK table have been determined by taking into consideration the duty suffered on the inputs i.e. yarn, chemicals and packing materials. All these rates are on “ALL C. Excise” basis as only the C. Excise duties and no Custom duties on the input have been considered. While formulating these rates, the C. Excise duty payable at the processing stage of the manufacture of these fabrics has not been included/considered.

In the SION, mentioned in the handbook of procedures against the export product man-made fabrics, it is observed that certain norms indicate “Fibre/Yarn/Poy” are chargeable to C. Excise duties whereas the “Grey Fabric” is exempted form the C. Excise levy. It is therefore obvious that the exports of man-made fabrics against Advance Lincence/DEEC Scheme or under DFRC scheme with involve “Grey Fabrics” as an input don’t merit ot be extended Drawback at the AIR fixed for man-made fabrics in the Drawback table. These rates are applicable to such export of processed fabric against the advnce Lincence/DEEC scheme or DFRC scheme where the input used i.e.”Poy/Fabric/Yarn”.

For future exports, the exporters are directed to clearly declare on the shipping bills the inputs used in the manufacture of such fabrics and the AIR of Drawback will be allowed strictly only in such cases where the inputs like “Fabre/Poy/Yarn” are duty paid or where duty would be payable on such inputs.

In all such cases, where the export item is man-made fabrics and where the input item allowed was “grey fabrics the exporters/CHAs and all concerned are hereby infrmed to surrender their DBK copies of the shipping bill to the Deputy commissioner of Customs/DBK Department or Group 7 for reconsideration of their DFRC & DBK benefits.

In the case of exporters who have already claimed the Drawback benefits, the exporters/CHAs and all concerned are informed to furnish the details of the Drawback claimed by them. They also requested to surrender/refund the amount of Drawback claimed by the against the said exports, within a period of 15 days of the receipt of this notice, so that their claim for DFRC benefits may be considered.

(S. P. S. PUNDIR)
COMMISSIONER OF CUSTOMS (EP)

F.NO.S/16-Misc 288/2001 Gr.VII, Dt. 15/03/2001

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