F.NO.S/6-MISC-147/2001 CFS (M)
IMP NO: 34
EXPNO: 34

PUBLIC NOTICE NO. 84/2001 Date: 12-07-2001

All Industry Rates of Duty Drawback for the year 2001-02.
Attention of all Exporters/CHAs Trade is invited to Notification No. 29/2001-Cus (NT) dated 1.6.2001 vide which the Drawback schedule for 2001-2002.

The new rates of drawback are effective from 7.6.2002. It may be noted that in the new schedule, a number of generic entries specially relating to ready made garments, leather articles and writing instruments have been rationalized and split into specific categories in the following manner: -

1. The existing entries at Sub-serial Nos.42.05 – 42.09, which broadly cover leather boxes, wallets, purses, travel bags, brief bags, etc. And the generics entry "all leather goods not elsewhere specified" have been split, rationalised and made specific through creation of 12 entries. This has been done keeping in view the representations from the export promotion council concerned and the members of the leather trade/

2. The entries relating to knitted garments (Sub-serial No. 61.01) and ready made garments (Sub-serial No.62.01) were generic and had a single rate with a broad drawback cap. Knitwears enjoyed drawback rate of 15% of FOB with a cap of Rs. 55/- piece and ready made garments a rate of 16.5% of FOB with cap of Rs.62/- piece. This broad banding has been in force till date. However, the reports were being received that this facility of broad banding was being misused by the exporters to artificially inflate the value of their export goods to derive the peak drawback, benefit obtaining in these entries. In view of the new Schedule as a part of rationalisation, these entries have been split and made specific after taking into account the data furnished by the Apparel Export Promotion Council. Accordingly, new specific entries with different drawback rates and caps have been introduced.

3. In the same manner, the existing entries pertaining to leather shoes, boots, sandals and show uppers have been rationalised and split into specific entries. This has been done considering the request of Council for Leather Exports.

4. Writing instruments of all sorts were enjoying drawback rate of 20% of FOB with a cap of Rs.4/- piece under Sub-serial No.96.03. However this year, based on the data submitted by the Writing Instruments Manufacturers Organisation, the entries have been split into five entries comprising plastic body ball pens, metal ball pens, micro tip pens, roller pens and marker highlighter pens.

Based on the data submitted by the All India Silk Export Promotion Council the drawback rates have been worked out for silk fabrics, garments and made-ups but they have been capped to the extent of duty incidence on per kilogram per square meter of silk content. Residual entry for all types of capital goods and machinery falling under Chapter 84 and 85 of Customs Tariff has also been introduced.

It is also informed that alignment of different Sub-serial Nos. Entries with the Customs Subheadings has been dispensed with to avoid confusion caused by interpretation of generic entries with reference to General Note 10.

All drawback claims shall be settled accordingly.

(RAMESH RAMACHANDRA)
COMMISSIONER OF CUSTOMS (GENERAL)
MUMBAI.

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