F. NO. S/10-45/2001 DBK
F. NO.13/2001

Drawback Department,
New Custom House,
Ballard Estate,
Mumbai 400 038

PUBLIC NOTICE NO.13/2001, Dt. 08/02/2001

Sub: Duty Drawback on Embroidered Silk Garment

Attention of all officer/field formations/trade is invited to Drawback circular no. 105/2000 Cus dt. 20.12.2000 vide F. NO. 609/154/2000 Dbk. Govt. of India , Ministry of Finance, Department of Revenue on the above subject.

Clarifications have been received from the Board regarding admissibility of drawback on export of beaded and embroidered wilk garments, under S.S. 62.06 and 62.07.

It is informed that the drawback rate under S.S. 62.07 has been determined by taking into account the duty incidence in respect of imported glass beads, sequines, lining and zippers. The rate dies not rebate duty incidence on account of silk as the silk used is imported duty free under the Advance Licence Scheme.

However, the drawback rate under S.S.62.06 is intended to rebate duty suffered on the imput i.e. Silk.

Since Exporters of embroidered silk garments have suffered duties on the raw material silk, it is decided that the embroidered garments – (including these embroidered with metallised yarn) be alloed drawback under S.S. 62.06.

Further, at the time of granting drawback, the value of embroidery/beads/sequins should be excluded from the total F.O.B. value and the exporters are required to declare the value of embroidery, beads and sequins seperately on the Shipping Bill.

(S.P.S. PUNDIR)
COMMISSIONER OF CUSTOMS, MUMBAI

ATTESTED

(A.K. CHAUDHARY)
DRAWBACK DEPARTMENT,
MUMBAI.

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