Drawback Circular No. 98/2000-Cus dated the 29th November, 2000
Duty Drawback
- Exports under DFRC Scheme Eligible to Drawback Sir,
Subject: All Industry Rates of Drawback in respect of man-made fabrics falling under Chapters 54, 55 and 58 of the Drawback Table - regarding.
In the All Industry Rates Drawback Table, the drawback rates for the man-made fabrics falling under Chapters 54, 55 and 58 of the said Table, have been determined by taking into consideration the duty suffered on the inputs, i.e., yarn, dyes, chemicals and packing materials. While formulating these rates, the Central Excise duty payable at the processing stage of the manufacture of these fabrics has not been included/considered. Therefore, if the processing stage duty on the finished man-made fabrics is covered under bond in terms of rule 13(1)(b) of the Central Excise Rules, 1944 or rebate is claimed under rule 12(1)(b) ibid, the All Industry Rate of Drawback shall be admissible provided no Modvat facility has been availed. The exporters are required, however, to produce proof of non-availment of Modvat, else they may apply for special Brand Rate in accordance with Customs & Central Excise Duties Drawback Rules, 1995.
2. The All Industry Rate of Drawback is also admissible in respect of yarn duty where the exporters avail Modvat credit on fibre/POY or where the fibre/POY is imported duty free but duty is paid on the yarn used in the grey/unprocessed fabric exported.
3. Representations have been received from the trade that in the wake of the introduction of the DFRC scheme, these existing instructions may also be made applicable to the Notification No. 48/2000-Cus (N.T.) dated 1.6.2000 whereby the Drawback Table, 2000-2001 was notified.
4. It is hereby clarified that the basic scheme of the Notification as well as of the Drawback Table has remained the same this year. Further, since the imports under DFRC Scheme are also subject to the payment of Countervailing duty (Central Excise duty), the relevant Notification No. 4/2000-Cus (N.T.) dated 25.4.2000, has been specifically included in the First Proviso to General Note 2(b), making the exports under this Scheme eligible to the Central Excise allocation of the Drawback Rates. Therefore, the above instructions are equally applicable to the exports effected under the DFRC Scheme.
5. Suitable Public Notice for information of the trade and standing orders for guidance of the staff may kindly be issued on the above lines.
6. Receipt of the Circular may please be acknowledged.
Sd/- (S.S. Renjhen)
Joint Secretary to the Govt. of India
Issued by:
Government of India, Ministry of Finance
Department of Revenue, New Delhi
F.No.609/115/2000-DBK
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