New Drawback Rates Effective from 19
December 2018 Released – Customs Notification
[Notification No. 95/2018-CUSTOMS (N.T.) dated 6
December 2018]
In exercise of the
powers conferred by sub-section (2) of section 75 of the Customs Act, 1962 (52
of 1962) and sub-section (2) of section 37 of the Central Excise Act, 1944 (1
of 1944), read with rules 3 and 4 of the Customs and Central Excise Duties Drawback
Rules, 2017 (hereinafter referred to as the said rules) and in supersession of
the notification of the Government of India in the Ministry of Finance
(Department of Revenue) No. 89/2017-Customs (N.T.) dated the 21st September, 2017 published vide number
G.S.R. 1178(E), dated the 21st September, 2017, except as respect to
things done or omitted to be done before such supersession, the Central
Government hereby determines the rates of drawback as specified in the Schedule
given below (hereinafter referred to as the said Schedule) subject to the
following notes and conditions, namely :-
Notes and
conditions
(1) The tariff
items and descriptions of goods in the said Schedule are aligned with the
tariff items and descriptions of goods in the First Schedule to the Customs
Tariff Act, 1975 (51 of 1975) at the four-digit level only. The descriptions of
goods given at the six digit or eight digit in the said Schedule are in several
cases not aligned with the descriptions of goods given in the First Schedule to
the Customs Tariff Act, 1975.
(2) The general
rules for the interpretation of the First Schedule to the Customs Tariff Act,
1975 shall, mutatis mutandis, apply for classifying the export goods listed in
the said Schedule.
(3) Notwithstanding
anything contained in the said Schedule, -
(i) all art-ware or handicraft items shall be
classified under the heading of art-ware or handicraft (of constituent
material) as mentioned in the relevant Chapters;
(ii) any identifiable ready to use machined part
or component predominantly made of iron, steel or aluminium, made through
casting or forging process, and not specifically mentioned at six digit level
or more in Chapter 84 or 85 or 87, except those classifiable under heading 8432
or 8433 or 8436, may be classified under the relevant tariff item (depending
upon material composition and making process) under heading 8487 or 8548 or
8708, as the case may be, irrespective of classification of such part or
component at four digit level in Chapter 84 or 85 or 87 of the said Schedule;
(iii) the sports gloves mentioned below heading 4203
or 6116 or 6216 shall be classified in that heading and all other sports gloves
shall be classified under heading 9506.
(4) The figures
shown in column (4) in the said Schedule refer to the rate of drawback
expressed as a percentage of the free on board value or the rate per unit
quantity of the export goods, as the case may be.
(5) The figures
shown in column (5) in the said Schedule refer to the maximum amount of
drawback that can be availed of per unit specified in column (3).
(6) An export
product accompanied with a tax invoice and forming part of project export
(including turnkey export or supplies) for which no figure is shown in column
(5) in the said Schedule, shall be so declared by the exporter and the maximum
amount of drawback that can be availed under the said Schedule shall not exceed
the amount calculated by applying ad-valorem rate of drawback shown in column
(4) to one and half times the tax invoice value.
(7) The rates of drawback
specified against the various tariff items in the said Schedule in specific
terms or on ad valorem basis, unless otherwise specifically provided, are
inclusive of drawback for packing materials used, if any.
(8) Drawback at the
rates specified in the said Schedule shall be applicable only if the procedural
requirements for claiming drawback as specified in rule 12, 13 and 14 of the
said rules, unless otherwise relaxed by the competent authority, are satisfied.
(9) The rates of
drawback specified in the said Schedule shall not be applicable to export of a
commodity or product if such commodity or product is -
(i) manufactured partly or wholly in a warehouse
under section 65 of the Customs Act, 1962 (52 of 1962);
(ii) manufactured or exported in discharge of
export obligation against an Advance Authorisation or Duty Free Import
Authorisation issued under the Duty Exemption Scheme of the relevant Foreign
Trade Policy :
Provided that where
exports are made against Special Advance Authorisation issued under paragraph
4.04A of the Foreign Trade Policy 2015-20 in discharge of export obligations in
terms of Notification No. 45/2016-Customs, dated 13th August, 2016, the rates
of drawback specified in the said Schedule shall apply as if in the said
Schedule, the entries in columns (4) and (5) against the Tariff items in the
said Schedule below all Chapters, except Chapter 61 and 62, are NIL, and those
in Chapters 61 and 62 are as specified in the Table annexed hereto;
(iii) manufactured or exported by a unit licensed as
hundred per cent Export Oriented Unit in terms of the provisions of the
relevant Foreign Trade Policy;
(iv) manufactured or exported by any of the units
situated in Free Trade Zones or Export Processing Zones or Special Economic
Zones;
(v) manufactured or exported availing the benefit
of the notification No. 32/1997- Customs, dated 1st April, 1997.
(10) Whenever a
composite article is exported for which any specific rate has not been provided
in the said Schedule, the rates of drawback applicable to various constituent
materials can be extended to the composite article according to net content of
such materials on the basis of a self-declaration to be furnished by the
exporter to this effect and in case of doubt or where there is any information
contrary to the declarations, the proper officer of customs shall cause a
verification of such declarations.
(11) The
term „article of leather‟ in Chapter 42 of the said Schedule shall mean
any article wherein
(a) 60% or more of the outer visible surface area; or (b) 60% or more of the
outer and inner surface area taken together, excluding shoulder straps or
handles or fur skin trimming, if any, is of leather notwithstanding that such
article is made of leather and any other material.
(12) The
term “dyed”, wherever used in the said Schedule in relation to textile materials, shall include
yarn or piece dyed or predominantly printed or coloured in the body.
(13) The
term “dyed” in relation to fabrics and yarn of cotton, shall include “bleached
or mercerised
or printed or melange”.
(14) The
term “dyed” in relation to textile materials in Chapters 54 and 55 shall
include “printed or bleached or melange”.
(15) In respect of
the tariff items in Chapters 60, 61, 62 and 63 of the said Schedule, the blend
containing cotton and man-made fibre shall mean that content of man-made fibre
in it shall be more than 15% but less than 85% by weight and the blend
containing wool and man-made fibre shall mean that content of man-made fibre in
it shall be more than 15% but less than 85% by weight. The garment or made-up
of cotton or wool or man-made fibre or silk shall mean that the content in it
of the respective fibre is 85% or more by weight.
(16) The
term “shirts”
in relation to Chapters 61 and 62 of the said Schedule shall include “shirts with
hood”.
(17) In respect of
the tariff items appearing in Chapter 64 of the said Schedule, leather shoes,
boots or half boots for adult shall comprise the following sizes, namely : -
(i) French point or Paris point or Continental
Size above 33;
(ii) English or UK adult size 1 and above; and
(iii) American or USA adult size 1 and above.
(18) In respect of
the tariff items appearing in Chapter 64 of the said Schedule, leather shoes,
boots or half boots for children shall comprise the following sizes, namely :-
(i) French point or Paris point or Continental
Size upto 33;
(ii) English or UK children size upto 13; and
(iii) American or USA children size upto 13.
(19) The drawback
rates specified in the said Schedule against tariff items 711301, 711302 and
711401 shall apply only to goods exported by airfreight, post parcel or
authorised courier through the Custom Houses as specified in para 4.72 of the
Hand Book of Procedures, 2015-2020 published vide Public Notice No.
1/2015-2020, dated the 1st April, 2015 of the Government of India in the
Ministry of Commerce and Industry, after examination by the Customs Appraiser
or Superintendent to ascertain the quality of gold or silver and the quantity
of net content of gold or silver in the gold jewellery or silver jewellery or
silver articles. The free on board value of any consignment through authorised
courier shall not exceed rupees twenty lakhs.
(20) The drawback
rates specified in the said Schedule against tariff items 711301, 711302 and
711401 shall not be applicable to goods manufactured or exported in discharge
of export obligation against any Scheme of the relevant Foreign Trade Policy of
the Government of India which provides for duty free import or replenishment or
procurement from local sources of gold or silver.
(21) “Vehicles”
of Chapter 87 of the
said Schedule shall comprise completely built unit or completely knocked down
(CKD) unit or semi knocked down (SKD) unit.
2. All claims for
duty drawback at the rates of drawback notified herein shall be filed with
reference to the tariff items and descriptions of goods shown in columns (1)
and (2) of the said Schedule respectively. Where, in respect of the export
product, the rate of drawback specified in the said Schedule is Nil or is not
applicable, the rate of drawback may be fixed, on an application by an
individual manufacturer or exporter in accordance with the said rules. Where
the claim for duty drawback is filed with reference to tariff item of the said
Schedule and it is for the rate of drawback specified herein, an application,
as referred under sub-rule (1) of rule 7 of the said rules shall not be
admissible.
3. The amount
referred in sub-rule (3) of rule 7 of the said rules, relating to provisional
drawback amount as may be specified by the Central Government, shall be
equivalent to the drawback rate and drawback cap shown in column (4) and (5) in
the said Schedule for the tariff item corresponding to the export goods, if
applicable, and determined as if it were a claim for duty drawback filed with
reference to such rate and cap.
4. This
notification shall come into force on the 19th day of December,
2018.