Govt Hikes Duty Drawback Rates on Gold (Rs. 252.39/gm) and Silver (Rs. 3285.40/kg) Jewellery

The government raised duty refund rates on gold and silver jewellery to Rs 252.30 per gram and Rs 3285.40 per kg, respectively on 24 June.

"Central government raises the AIR (All India Rates) duty drawback on export of silver jewellery and articles from Rs 2,790 to Rs 3285.40 per kg," Central Board of Excise and Customs (CBEC) said in a tweet.

The Government raises the AIR duty drawback on export of gold jewellery from Rs 209.30 to Rs 252.30 per gram, it added.

Duty drawback is refund of duties on imported inputs for export items.

[CBEC Circular No. 30 dated 24th June 2016]

Subject: Increase in All Industry Rates (AIR) of Duty Drawback on gold jewellery and silver jewellery/articles.

The Government has amended the AIR Drawback Notification no. 110/2015-Cus (N.T.) dated 16.11.2015 vide Notification No. 90/2016-Customs (N.T.) dated 24.06.2016 which may be downloaded and perused from www.cbec.gov.in.

2.  This amendment has raised, with effect from 24.06.2016, the specific AIRs of Drawback for export of gold jewellery, silver jewellery and silver articles under tariff item numbers 711301, 711302 and 711401, respectively, and specified additional conditions when the AIRs on these items shall not be applicable. Accordingly, it will be necessary for the exporter claiming these AIRs to make a declaration at the time of export.

3.  The declaration shall be that the goods on which AIR of drawback is claimed under tariff item numbers 711301, 711302 or 711401 are manufactured or exported without availing CENVAT facility for any of the inputs or input services used in their manufacture and without availing the rebate of duty paid on materials used in their manufacture or processing in terms of rule 18 of the Central Excise Rules, 2002 and are not manufactured or exported in terms of sub-rule (2) of rule 19 of the said Central Excise Rules, 2002.

4.  Wherever these revised AIRs of tariff item numbers 711301, 711302 or 711401 are claimed the availability of this declaration shall be ensured and recorded at the Let Export Order stage by the Customs officer.

5.  Suitable public notices/standing orders are to be immediately issued for guidance of the Trade/field formations. Difficulties faced, if any, in implementation of the changes may be brought to the notice of the Board.

[Customs Notification No. 90 (Non Tariff) dated 24th June 2016]

In exercise of the powers conferred by sub-section (2) of section 75 of the Customs Act, 1962 (52 of 1962), sub-section (2) of section 37 of the Central Excise Act, 1944 (1 of 1944), and section 93A read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), read with rules 3 and 4 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, the Central Government, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.110/2015-Customs (N.T.), dated the 16th November, 2015, published vide number G.S.R. 861 (E), dated the 16th November, 2015, namely:-

In the said notification,-

(a) in the Notes and conditions, after paragraph (24), the following paragraph shall be inserted, namely :-

“(24A) Notwithstanding anything contained in paragraph (7) above, the drawback rate specified in the said Schedule against tariff items 711301, 711302 and 711401 shall not be applicable to goods manufactured or exported availing CENVAT facility for any of the inputs or input services used in their manufacture or availing the rebate of duty paid on materials used in their manufacture or processing in terms of rule 18 of the Central Excise Rules, 2002 or manufactured or exported in terms of sub-rule (2) of rule 19 of the said Central Excise Rules, and the exporter claiming the drawback rate against said tariff items shall make appropriate declaration at the time of export.”;

(b)  in the Schedule, in Chapter-71,-

(i)   under heading 7113, for tariff items and the entries relating thereto, the following tariff items and entries shall be substituted, namely :-

“711301

Articles of jewellery and parts thereof, made of gold

Gms

Rs. 252.30 per gram of net gold content (.995 or more purity) in the jewellery

 

Rs. 252.30 per gram of net gold content (.995 or more purity) in the jewellery

 

711302

Articles of jewellery and parts thereof, made of silver

Kg

Rs. 3285.40 per kg of net silver content (.999 purity) in the jewellery

 

Rs. 3285.40 per kg of net silver content (.999 purity) in the Jewellery

 

711399

Others

 

Nil

 

Nil

”;

(ii) under heading 7114, for tariff items and the entries relating thereto, the following tariff items and entries shall be substituted, namely :-

“711401

Articles made of silver

Kg

Rs. 3285.40 per kg of net silver content (.999 purity) in the article

 

Rs. 3285.40 per kg of net silver content (.999 purity) in the Article

 

711499

Others

 

Nil

 

Nil

”.

[F. No. 609/35/2016-DBK]