F.No. S/10-284/2001 DBK
IMPORT SUPPLY NO. 14/2001
EXPORT SUPPLY NO.14/2001
PUBLIC NOTICE NO.63/2001 DT. 28/05/2001
Sub : Duty Drawback on Ready-made Garments (RMG) in the wake of levy of
terminal Excise duty
Attention of all Exporters/CHAs and all other concerned is invited to
Drawback Circular No.25/2001-Cus dated 24.4.2001 vide F.No.609/46/2001-DBK, Govt. of India, Ministry of finance,
Department of Revenue on the above mentioned subject.
It has been proposed in the Finance Bill 2001 to subject readymade garment and clothing accessories bearing/sold under a registered brand name and falling under a C.E.T. heading 62.01/62.02 to a CENVAT levy of 16% ad valorem from 1.3.2001.
It is clarified that earlier, since such goods were not chargeable to any excise duty and the drawback rates fixed accounted for Customs and Central Excise duties on the inputs the availment of drawback benefits were therefore not subjected to any condition of non-availment of CENVAT facility.
However, to avoid any double benefits to exporters, the admissibility of drawback on goods covered under Sub-serial No.62.01,62.08,62.13,62.15,62.16,62.17,62.18,62.19 and 62.20 have been subjected to the condition that the CENVAT facility has not been availed.
In cases where the CENVAT facility has been availed, only the Customs allocation of drawback is admissible. Therefore, 8 new Sub-serial Nos.62.011,62.081,62.151,62.161,62.171,62.181,62.191 and 62.201 have been added to the Drawback table with the rates equivalent to the Customs
allocation with proportionate drawback caps. Exporters of goods not coming under the Central Excise net can be allowed higher drawback subject to furnishing of a declaration stating that -
- The goods do not bear any registered brand name and do not merit Central Excise duty as they are exempted under Notification 12/2001 C.E.
- The exporters are not registered with Central Excise and are not availing CENVAT facility for the inputs used in the manufacture of the goods under export.
It is also clarified that if the goods are not exported under the AR4 procedure of Central Excise and the relevant declaration as above is furnished, then the exporters may not be required to produce a Central Excise certificate regarding availment/non-availment of the CENVAT credit facility.
All Drawback claims shall be decided accordingly.
Sd/-
(M. DWIVEDI)
COMMISSIONER OF CUSTOMS (EP)
ATTESTED
(A. K. CHOUDHARY)
DY. COMMISSIONER OF CUSTOMS
DRAWBACK DEPTT.