Procedure for Drawback Claim for Gold and Silver Jewellery

The following Public Notice was issued by the Commissioner of Customs (Export) Air Cargo Complex, Mumbai on 24th February 2010.

[Customs Public Notice No. 04 dated 24th February 2010]

Subject: - Introduction of drawback on Gold and Silver Jewellery - Procedure for drawback claim.

Attention of all Exporters, Custom House Agents and the Trade isinvited to Notification No. 175/2009-Customs (NT) dated 27.11.2009 and Circular No. 33/2009-Customs dated 27.11.2009 issued by the Central Board of Excise & Customs. By the said notification, new entries for gold and silver Jewellery and parts thereof have been introduced at Sl. No. 711301 and 711302 of Drawback Schedule. Specific Drawback rates based on content of gold (0.995 or more purity) and silver (0.999 purity) have been prescribed.

2. Drawback for gold and silver Jewellery and parts thereof will only be applicable for exports made through Air Cargo Complex, Mumbai after filing of Shipping Bill at Diamond Plaza Customs Clearance Centre (DPCCC-I / II) or Andheri Gem & Jewellery Section, Andheri & examination thereof by the Customs Jewellery Expert or Appraising Officer / Superintendent to ascertain the quality and the quantum of gold/silver in exported items.

3. The drawback rates provided for gold & silver Jewellery and parts thereof shall not be applicable to goods manufactured or exported in discharge of export obligation against any scheme of the relevant Export and Import Policy or the Foreign Trade Policy of the Government of India which provides for duty free import / replenishment / procurement of gold / silver from local sources.

4. In order to ensure smooth implementation of this, following procedure is prescribed:-

(a) The exporter shall file drawback Shipping Bill in green colour manually at Diamond Plaza Customs Clearance Centre (DPCCC-I / II), Swastik Chambers, 2nd Floor, 391, Lamington Road, Mumbai – 400 004 or Andheri Gem & Jewellery Section, Andheri, as the case may be, in quadruplicate. The form of shipping bill shall be as laid down vide Shipping Bill and Bill of Export (Form) Regulations, 1991. The Shipping Bill should bear the details of exporter’s bank account in which they want drawback amount to be credited. The Shipping Bill shall be accompanied by the following documents:-

(i) Invoice.

(ii) Copy of export contract / Letter of Credit

(iii) Packing List

(iv) GR-1 form in duplicate

(v) Declaration as prescribed in Annexure-I

(vi) Certificate of registration with the Gem & Jewellery Export promotion Council, for the exporters registered with that council.

(b) The Shipping Bill must contain item-wise details indicating identification mark as per Annexure-I, including gross weight and net weight of gold content (0.995 or more purity) / net silver content (0.999 purity), as the case may be.

(c) The goods and Shipping Bill shall be presented to the Customs Jewellery Expert Appraiser/ Superintendent at Diamond Plaza Customs Clearance Centre (DPCCC-I / II) or Andheri Gem & Jewellery Section, Andheri, as the case may be. The Customs Jewellery Expert Appraiser/ Superintendent shall examine the goods w.r.t. content of gold / silver and assess the Shipping Bill. The content of gold / silver shall be certified by the Customs Jewellery Expert for drawback purposes.

(d) All Shipping Bills with FOB value more than Rs.10 Lakhs or Drawback more than Rs.1 Lakh shall be countersigned by the Assistant / Deputy Commissioner of Diamond Plaza Customs Clearance Centre (DPCCC-I / II), Mumbai or Andheri Gem & Jewellery Section, Andheri, as the case may be. For this purpose, Customs Jewellery Expert or Appraising Officer / Superintendent shall forward all such Shipping Bills to AC / DC Diamond Plaza Customs Clearance Centre (DPCCC-I / II) or Andheri Gem & Jewellery Section, Andheri, as the case may be, so as to reach him before 5 P.M.

(e) The Jewellery and part thereof shall be packed in steel / tin containers of suitable size only. These containers shall be sealed under the supervision of the Customs Jewellery Expert or Appraising Officer / Superintendent with one time wire seal and also separate serial numbered one time security seal after examination and certification of gold content (0.995 or more purity) / Net silver content (0.999 purity) as the case may be. The serial number of the security seal shall be indicated on the Shipping Bill by the Customs Jewellery Expert or Appraising Officer / Superintendent. After grant of Let Export Order, the goods shall be deposited with the Custodian for completion of export procedure as prescribed in relevant public notices and handing over of the cargo to the airlines for shipment.

(f) The Custodian at Diamond Plaza Customs Clearance Centre (DPCCC-I / II) or Andheri Gem & Jewellery Section, Andheri, as the case may be, will prepare Air Cargo Transfer Manifest (ACTM) in triplicate and the ‘Transshipment Permit’. The duplicate, triplicate and Export Promotion copies of the Shipping Bills along with original and duplicate copies of the ACTM will accompany the export cargo. The cargo will then be transshipped by the Custodian to the Air Cargo Complex, Sahar for onward shipment by airlines. Custodian will be responsible for the safe & secure transportation of export parcels from the Diamond Plaza Clearance Centre (DPCCC-I / II) or Andheri Gem & Jewellery Section, Andheri, as the case may be, to the Air Cargo Complex, Sahar.

(g) The cargo will be presented to the Customs Export Freight Officer (E.F.O.) at the Air Cargo Complex, Sahar, who will check the parcels and the wire seal and one time security seal on the same with the particulars on shipping bills (including serial number of seal), ACTM and then permit the airlines for loading of the goods for exportation under Customs escort. The airlines will acknowledge the receipt of the cargo on the ACTM copies and return the original and the duplicate copy of ACTM to the Custodian, who shall submit the original copy to the DPCCC-I / II or Andheri Gem & Jewellery Section, Andheri, as the case may be, for their records.

(h) After the shipment, endorsement will be obtained on the duplicate, triplicate and E. P. copies of Shipping Bill from Airlines and E.F.O., the Custodian will forward duplicate Shipping Bill to DPCCC-I / II or Andheri Gem & Jewellery Section, Andheri, as the case may be, for connecting with original Shipping Bill and the ACTM. The Custodian will hand over E.P. copy of Shipping Bill to the exporter and Triplicate copy to Customs Batch Office of the Air Cargo Complex, Sahar.

(i) The Triplicate copy of Shipping Bill for export of goods under a claim for drawback shall be deemed to be a claim for drawback filed on the date on which the proper officer of Customs makes an order permitting clearance and loading of goods for exportation under Section 51, and said claim for drawback shall be retained by the proper officer of Customs Batch Office after making such order.

(j) The Exporter/CHA and the officer of DPCCC-I / II or Andheri Gem & Jewellery Section, Andheri, as the case may be, shall ensure that the said claim for drawback (Triplicate copy of S/B) is accompanied by the following documents, namely:-

(i) Invoice

(ii) Copy of export contract / Letter of Credit

(iii) Packing List

(iv) Declaration as prescribed in Annexure I

(v) Certificate of registration with the Gem & Jewellery Export promotion Council, for the exporters registered with that council.

(k) The officer-in-charge of Customs Batch Office, ACC, Sahar shall ensure endorsement of EGM and flight details on the Triplicate copy of Shipping Bill. The Triplicate copy of Shipping Bill along with enclosures shall be sent to Drawback Section at ACC, Sahar for processing and sanction of drawback claim.

(l) There shall be specific register at the Customs Batch Office to record receipt of such claims and their dispatch to Drawback Section, as well as register in Drawback Section where these shall be entered and then disposed.

5. For disbursal of drawback amount, the Exporter shall provide to the Assistant Commissioner / Deputy Commissioner (Drawback), Air Cargo Complex, Sahar details of their bank account in which they want drawback amount to be credited. No claim shall be sanctioned unless this information has been provided.

6. The Drawback Section shall sanction and disburse drawback amount by issue of a consolidated cheque on weekly basis for the exporter who has their Bank account with any Branch of the State Bank of India. A consolidated cheque shall be forwarded to SBI, Air Cargo Complex for onward credit to the accounts of the respective exporters. For rest of the exporters, who do not have an account with any branch of the State Bank of India, individual cheque bearing the bank name & account No. shall be issued which shall be dispatched only by registered post / speed post. There will be no hand delivery of cheque under any circumstances.

Any difficulty faced in this regard may be brought to the notice of this office.

F.No. S/3-S.O./P.N-102/2010 DBK(EDI)

Annexure-I

Declaration by the Exporter for export of Gold / Silver Jewellery or parts thereof under claim of drawback

I/we______________(name of the Exporter) declare that:-

1.* The weight of gold / silver declared in the shipment if for 0.995 or more purity of gold or 0.999 purity of silver.

2.* The gross weight is more than gold / silver content and the net gold content (0.995 or more purity) / Net silver content (0.999 purity) is _______ and the drawback claim has been restricted to this quantity only.

3. The export is not under any other export promotion scheme under which gold / silver is supplied / replenished duty free.

4. The item-wise content details in Studded / Kundan/Theva/Meena Jewellery is as under:-

SNo.	Item	Quantity	Value
1.	Gold
	(a) Gross weight (in grams)
	(b) Net weight (in grams)
	(c) Net weight in 0.995 purity
2.	Silver
	(a) Gross weight (in grams)
	(b) Net weight (in grams)
	(c) Net weight in 0.999 purity
3.	Gem stones
	(a) Precious stones (pcs and carat)
	(b) Semi-precious stones (pcs and carat)
4.	Diamond (pcs, size and carat)
5.	Glass (pcs and weight)
6.	Wax or lac
7.	Any other material

Above declaration is true to the best of my knowledge and I shall be held responsible for any discrepancy, if noticed during examination by the Customs.

*Strike out whichever is in applicable.

(Name, address and
Signature of the Exporter)