Date : 22.10.2002
Imp :- 69/02
Exp :- 69/02
PUBLIC NOTICE NO. 130/2002

Sub : 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 and 64/2001-Cus dated 19.11.2001, issued to address the specific problems of merchant-manufacturer exporters of garments in claiming duty drawback.

2. In the Union Budget, 2001-2002, duty of Central Excise was imposed on readymade woven garments. Therefore, entries were created in the Drawback table, 2001-2002, with higher drawback rates for those cases where CENVAT facility was not availed. It was, however, represented by the Garment industry that majority of the garment exporters cleared the goods for export purposes and they were not paying any duty. Accordingly, garment exporters were given the facility of filing only declarations in terms of the above referred Circulars instead of furnishing CENVAT non-availment certificates, for claiming higher drawback. No such procedure was considered necessary for knitted garments as they were exempt from Central Excise levy.

3. This year, knitted garments too have been subjected to Central Excise duty. Therefore, as in case of woven garments, separate entries have been created in the Drawback Table, 2002-2003, for the cases where CENVAT facility is availed and those cases where no such facility is availed. Certain trade bodies have brought it to the notice of the Board that the exporters of knitted garments are facing difficulties as the Customs officers in the field formations have been insisting on the production of a certificate regarding non-availment of CENVAT facility. The trade has represented that the position of knitted garments is not different from the one obtaining in respect of woven garments as majority of knitted garments produced are cleared for exports. Hence, the question of availment of CENVAT facility in respect of exports does not arise. They have requested that for this reason these exports should be given the same facility as is available to the woven garments.

4. The issue has been examined in the Ministry. In view of the position explained by the trade, it is felt that the knitted garments sector deserves the same treatment as given to the woven garment sector. Hence, it is clarified that the provision of Circulars No. 54/2001-Customs and 64/2001-Customs would also be applicable to the knitted garments. These exporters may be granted higher drawback on production of the declarations as provided in Annexure-I and Annexure-II to this Circular.

5. Since, the Central Excise levy on knitted garments has come into effect from 01.03.2002, all the exports effected on or after this date shall be eligible for this facility. Therefore, all the pending cases may be settled accordingly.

6. The Custom Houses shall get the veracity of the declarations given by the exporters and their supporting manufacturers/job workers, verified at random by the jurisdictional Deputy/Assistant Commissioner of Central Excise on quarterly basis. The criteria for random selection of such declaration to be verified by the Excise authorities, may be formulated by the Commissioner of Customs. If on verification any misdeclaration is discovered, the higher drawback granted by the Customs would be recovered and only benefits admitted for future shipments to such exporters.

7. Contents of this notice may be brought to the notice of all concerned and trade constituents in particular.

Sd/- 01.10.2002
( C.SEN )
COMMISSIONER OF CUSTOMS (G)
NEW CUSTOM HOUSE.
MUMBAI

Enclosure :- Annexure I & II

Issued from File No. S/10-71-DBK/2002 CFS (M)

(Issued on the basis of Circular No. 43/2002- Customs dated 19.7.2002 of Government of India. Ministry of Finance, Department of Revenue in F.No. 609/107/2001-DBK dated 19th July, 2002).

ATTESTED

(MITHILESH KUMAR)
DY. COMMISSIONER OF CUSTOMS
CFS MULUND

Annexure – II

Supporting Manufacturers’/Job Workers’ Declaration required for Exports of Woven/Knitted Garments for Availing higher all Industry Rate of Drawback.

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 Units (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 to 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

ANNEXURE – 1

Exporters Declaration required for Exports of Woven/Knitted Garments for availing higher All Industry Rate of Drawback.



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 Units(s)/ Job Work Premises :




We, M/s, ……………………………………………. The Exporters of the above mentioned goods, hereby delcare that –


(a) we are not registered with Central Excise Authorities.

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

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

(d) We have not authorised any supporting manufacturer/job-worker to pay exicise duty and discharge the liabilities and comply with the provision of Central Excise (No. 2) Rules, 2001, under the provision to Rule 4 (3) of the said Rules.

We also undertake that in case it is discovered that the Cenvat facility has been availed by us or by our supporting manufacturers in respect of these export goods, we shall return the excess drawback paid to us on the basis of above declaration.

Exporters’ Signature & Seal

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