Import Supply No. 63

Export Supply No. 63

PUBLIC NOTICE NO. 117/2001 Date: 23.10.2001

Sub.: Duty Drawback on Readymade woven Garments falling under Chapter 62 of the Customs and Central Tariff in the wake of levy of C. Ex. duty–Problems faced by Merchant Exporters regarding availment of Drawback on garments – reg.
Attention of all exporters/CHAs and all other concerned is invited to the All Industry Drawback Rates, 2001 - 2002 on Readymade woven Garments as notified by Govt. of India, Ministry of Finance, Department of Revenue vide Notification No. 29/2001-Cus (NT) dated 1.6.2001, as amended.

2. All categories of Ready-made woven garments (other than raincoats, undergarments and clothing accessories) falling under Chapter 62 of Customs & Central Tariff Act are now subject to central excise levy as a result of changes announced in the Union Budget, 2001 - 2002 (Finance Bill stage and those made thereafter till the Finance Bill was enacted). Though normally it is the actual manufacturer who is to pay duty of excise leviable on any commodity, considering the peculiar and very decentralized nature of garment producing sector certain special provisions by supplying materials to producing job working units have been recognized for registration duty payment etc. purposes. Vide Rule 4(3) of Central Excise (No.2) Rules 2001, a merchant manufacturer, i.e. a merchant, who gets the goods manufactured from a job worker on his own account is required to pay duty on the garments manufactured on his behalf on job work basis, either himself or authorize such job worker(s) to pay duty on his behalf. When merchant manufacturer pays duty, he is also entitled to avail of CENVAT for inputs procured and used for garment production by job workers.

3. Since the manufacturer or merchant manufacturer who domestic turnover exceeds rupees one crore has to pay excise duty and can avail of Cenvat credit in respect of inputs used in the manufacture of woven garments, separate drawback rates have been provided with effect from 7.6.2001 for the garments where Cenvat facility is availed or not availed. In case the Cenvat facility is availed, the drawback rate has only Customs allocation and if such facility is not availed, the rate includes both the Customs & Central Excise allocations.

4. In the case of goods manufactured by manufacturer-exporters, there shall not be any difficulty in verifying the declaration that Cenvat facility has not been availed in as much as for dutiable garment, if cleared for export under bond rebate claim, movement has to be made under ARE-1 and such exporters can evidence the same through production of an ARE-1 issued.

5. For the exports, where ARE-1 is not issued, it has been decided that they should clearly declare on the Shipping Bills, the name(s) of the job worker(s) supporting manufacturing unit(s) through whom the garments covered by the Shipping Bill have been manufactured. These exporters shall also be required to give a declaration in the format given in the Annexure-1 certifying inter alia that they are not registered with the Central Excise and that they are not paying any Central Excise duties and not availing of the Cenvat facility and that they have not authorized any supporting manufacturer/job-worker to pay excise duty and comply with the provisions of Central Excise (No.2) Rules, 2001.

6. These exporters shall also be required to furnish a certificate-cum-declaration as given in Annexure-II, from their supporting manufacturers/job-workers interalia clarifying that they are manufacturing and supplying garments to this particular merchant exporter only and that they are not registered nor availing of any Cenvat facility for any garments manufactured by them.

7. Such merchant - manufacturer exporters can be allowed higher drawback on the basis of these declarations.

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

9. All Drawback claims shall be decided accordingly.

10. This Public Notice is issued in supercesion of the earlier Public Notice No. 63/2001 dated 28.5.2001 issued by this Commissionerate in F. No. S/10-284/2001 DBK

(M. DWIVEDI)
COMMISSIONER OF CUSTOMS (EP)

Encl.: Annexure I & II

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

(Issued on the basis of Circular No. 54/2001-Cus dt. 19.10.2001 of Govt. of India, Ministry of Finance, Department of Revenue in F. No. 609/107/2001-DBK)

Attested

(B. C. Rajak)
Dy. Commissioner of Customs,
Drawback Deptt.

ANNEXURE-I

Exporters’ Declaration required 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 the Goods:

2. Invoice No. and Date :

3. Name and address of the Exporter along
with the name of the Jurisdictional Central Excise
Commissionerate/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 Manufacturing Units(s)/
Job Work Premises:

We, M/s. ___________________________ , the Exporters of the above mentioned goods hereby declare 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 Cenvat facility under the CENVAT Credit Rules, 2001 or any notification under thereunder, and

(d) we have not authorized any supporting manufacturer/job-worker to pay excise duty and discharge the liabilities and comply with the provisions of Central Excise (No.2) Rules, 2001, under the proviso 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

ANNEXURE-II

Supporting Manufacturers’/Job Workers’ Declaration required 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 the Goods:

2. Invoice No. and Date :

3. Name and address of the Exporter along with
the name of the Jurisdictional Central Excise
Commissioner/Divison/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 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 of the Cenvat facility under the CENVAT Credit Rules, 2001 or any notification issued thereunder, and

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

Supporting Manufacturers’/Job Workers’ Signature & Seal

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

Presented by eximkey.com