F.No. S/10-248/2001 DBK

PUBLIC NOTICE NO.132/2001 Date: 18.12.2001

Sub.:Duty Drawback on Readymade Woven Garments failing under Chapter 62 the wake of levy of C.Ex. duty - Problems faced by Merchant Exporters regarding availment of Drawback on Garments - Reg.
Attention of all Exporters/CHA’s and all concerned is invited to Ministry’s Circular No. 64/2001 - Cus dated 19.11.2001 vide F. No.609/107/2001 - DBK issued by Govt. of India, Ministry of Finance, Department of Revenue on the above mentioned subject.

1. Representations have been received from the trade requesting for clarifying issues for the proper implementa-tion of the true spirit of the said Circular. These issues have been examined in detail.

2. There is misapprehension in the field formation that in respect of the Manufacturer Exporters of Readymade Garments. It is mandetory to furnish a Certificate regarding non-availment of Cenvat Certificate/ ARE 1.

3. It is clarified here that since the procedure for the Merchant Exporters has been relaxed a similar facility may be allowed to the Manufacturer Exporter. Therefore, it would be sufficient if the manufacturer Exporter gives a declaration that he is not paying any Central Excise Duty and not avail-ing the Cenvat Facility. The format prescribed in Annexure 1 can also be used by a Manufacturer Exporter. The veracity of the declaration given by the exporter will be verified from the Central Excise authorities by following the same criteria procedure laid down in Paragraph 8 of the earlier issued Circular 54/2001-Cus (P.N.No.117/2001.S.O.No. 7654/2001)

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 that the Exporter has to only give a declaration as prescribed in Annexure I and Annexure II of Circular 54/2001 - Cus.

5. Trade has represented that the conditions laid down in paragraph 6 and Annexure II of the circular 54/2001 are restrictive as they restrict the job worker/ supporting manufacturer to Manufacture Garments only for a Particular Merchant Exporter. Accordingly it is clarified that no such restriction can be placed on Job Worker/ Supporting Manufac-turer, the Annexure II has been amended accordingly the word ‘only’ is deleted.

6. However, While giving the declaration in Annexure II, both the Merchant Exporter and his supporting Manufacturer/Job Worker have to ensure that in respect of Garments Manufactured and supplied to the Merchant Exporter. Cenvat facility is not availed. In the event of any mis-declaration in this regard, the higher drawback amoun paid shall be recovered.

7. It is further clarified that Circular 54/2001- Cus and the present Circular are applicable to all the past Cases of similar nature where the exports have already been effected and these should be applied accordingly.For all the earlier cases, where the exporters could not give a declara-tion regarding their Supporting Manufacturers/ Job Workers, the declarations provided in Annexure I and Annexure II can be furnished to the Custom Authorities. The pending drawback claims can be processed on the basis of these declarations. The veracity of these declarations will be verified by fol-lowing the same procedure as is detailed in paragraph 8 of the earlier Circular No. 54/2001 - Cus dated 19.10.2001

The drawback claims may be settled accordingly.

(M. DWIVEDI)
COMMISSIONER OF CUSTOMS (E.P.)

Encl : Annexure II

F. No. S/10-284/2001 DBK

(Issued on the basis of Circular No. 64/2001 Cus. dt. 19.11.01 of Govt of India,Ministry of Finance. Department of Revenue in F. No. 609/107/2001-DBK)

ANNEXURE II

Supporting Manufacturers’ / Job Workers’ Declarations re-quired 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 Goods :

2. Invoice No. and Date :

3. Name and Address of the :
Exporter along with the
Name of the Jurisdictional
Central Excise Commission-
erate / Division / Range

4. Name of the Supporting :
Manufacturer (s)/ Job Worker(s)
along with the name of the
Jurisdictional Central Excise
Commissionerate / Division /
Range.

5. Address of the Manufactur- :
ing Units (s)/
Job work Premises

WE, M/s._______________________________. the support-ing manufacturers/ Job Workers declare that we

(a) are not registers with Central Excise authorities.

(b) have not paid any Central /excise duty on these goods. and

(c) have not availed of trhe Cenvat facility under the CENVAT Credit Rules. 2001 or any notification issued there under. and

We also declare that we are manufacturing and supplying garments to the above merchant exporters.

Supporting Manufacturers’ / Job Workers’ Signature & Seal

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