IMP. NO. 115/2003
EXP. NO. 115/2003
PUBLIC NOTIC NO. 32/2003 DATE : 26/03/2003
Subject : Duty Drawback on Composite Items – reg.
Attention of all Exporters/CHA’s is invited to the Ministry’s Circular No.9/2003-Cus issued under F. No. 609/162/2002 DBK dated 17.2.03 on the above subject reproduced below.
2. Attention is invited to General Note 11 to Customs Notification No 33/2002-Cus (N.T.) dated 29.5.2002. In terms of the said note, if a composite article is exported for which any specific rate has not been provided in the Duty Drawback Table, duty drawback can be extended to the composite articles according to the net content of various constituent materials at the rate of duty drawback applicable to such materials in the Drawback Table. However, such extension of drawback is subject to the condition that various constituent materials are visibly distinguishable and their weights unambiguously verifiable.
3. The trade has however been representing that on occasions it becomes difficult to resolve the composite article into its constituent components and the only alternative is to break the article. This results in wastage of the products and also the exporters are asked to go for laboratory testing to ascertain the composition of individual materials.
4. This issue has been considered by the Kelkar Committee and based on its recommendations, the Board has decided that as a general policy, the weight of the constituent materials in a composite item as declared by the exporters should be accepted. The verification can be caused only in cases of doubt or if there is intelligence to the contrary.
All drawback claims should be decided accordingly.
Sd/- (4.3.03)
(SHISHIR KUMAR)
COMMISSIONER OF CUSTOMS (EP)
MUMBAI
Attested By
(S. G. GAWDE)
DY. COMMISSIONER OF CUSTOMS
DRAWBACK DEPARTMENT
MUMBAI.
F. NO. S/10-608/2001 DBK
(Issued on the basis of Ministry’s Circular 9/2003 Customs issued under F. No. 609/162/2002 DBK dated 17.2.03 Government of India, Ministry of Finance, Department of Revenue)
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