[TO BE PUBLISHED IN THE GAZETTE OF INDIA,
EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, dated the 22nd
September, 2011
Notification
No. 68 / 2011 - Customs (N.T.)
G.S.R. (E). 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 and 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 (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.84/2010-Customs (N.T.), dated the 17th
September, 2010 published vide number
GSR 765(E), dated the 17th September, 2010 except as respects things done or omitted to
be done before such supersession, the
Central Government hereby determines the rates of drawback as specified in the
Schedule annexed hereto (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 or modified six or eight or ten digits are in several cases not
aligned with the descriptions of goods given in the said First Schedule to the
Customs Tariff Act, 1975.
(2) The General Rules for the Interpretation
of the First Schedule to the said 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, all artware or handicraft items shall be classified under
the heading of artware or handicraft (of constituent material) as mentioned in
the relevant Chapters.
(4) The figures shown in columns (4) and (6)
in the Schedule refer to the rate of drawback expressed as a percentage of the free on board ( f.o.b.)
value or the rate per unit quantity of the export goods, as the case may be.
(5) The figures shown in columns (5) and (7)
in the said Schedule refer to the maximum amount of drawback that can be
availed of per unit specified in column (3).
(6) The figures shown under the drawback
rate and drawback cap appearing below the column “Drawback when Cenvat facility
has not been availed” refer to the total drawback (customs, central
excise and service
tax component
put together) allowable and those appearing under the column “Drawback
when Cenvat facility has been availed” refer to
the drawback allowable under the
customs component. The difference
between the two columns refers to the central excise and service tax component
of drawback. If the rate indicated is the same in both the columns, it shall
mean that the same pertains to only customs component and is available
irrespective of whether the exporter has availed of Cenvat or not.
(7) Drawback
at the rates specified in the said Schedule shall be applicable only if the
procedural requirements for claiming drawback as specified in rules 11, 12 and
13 of the said rules, unless otherwise relaxed by the competent authority, are
satisfied.
(8) 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-
(a) manufactured partly or wholly in a
warehouse under section 65 of the Customs Act, 1962 (52 of 1962);
(b) manufactured or exported in discharge of
export obligation against an Advance Licence or Advance Authorisation or Duty
Free Import Authorisation issued under
the Duty Exemption Scheme of the relevant Export and Import Policy or the
Foreign Trade Policy:
Provided
that where exports are made against Advance Licences issued on or after the 1st
April, 1997, in discharge of export obligations in terms of notification No.
31/97 - Customs, dated the 1st April, 1997, or against Duty Free Replenishment
Certificate Licence issued in terms of
notification No. 48/2000-Customs, dated the 25th April, 2000, or
against Duty Free Replenishment Certificate Licence issued
in terms of notification No.
46/2002-Customs, dated the 22nd
April, 2002, or against Duty
Free Replenishment Certificate Licence issued
in terms of notification No. 90/2004-Customs, dated the 10th
September, 2004, drawback at the rate equivalent to Central Excise allocation
of rate of drawback specified in the said Schedule shall be admissible subject
to the conditions specified therein;
(c) manufactured
or exported by a unit licensed as hundred percent Export Oriented Unit in terms
of the provisions of the relevant Export
and Import Policy and the Foreign Trade Policy;
(d) manufactured or exported by any of the
units situated in free trade zones or export processing zones or special
economic zones;
(e) manufactured or exported availing the
benefit of the notification No. 32/1997–Customs, dated 01st April,
1997;
(f) exported under the Duty Entitlement
Pass Book Scheme as contained in the Foreign Trade Policy, read with
the Hand Book of Procedures
issued in pursuance of the provisions
of the said policy.
(9) The rates and caps of drawback specified
in columns (4) and (5) of the said schedule shall not be applicable to export
of a commodity or product if such commodity or product is-
(a) manufactured or exported by
availing the rebate of
duty paid on
materials used in the manufacture or
processing of such commodity
or product in terms of rule 18 of the Central Excise
Rules, 2002;
(b) manufactured or exported in terms of
sub-rule (2) of rule 19 of the Central Excise Rules, 2002.
(10) Where the export product is not
specifically covered by the description of goods in the said Schedule, the rate
of drawback may be fixed, on an application by an individual manufacturer or
exporter in accordance with the Customs, Central Excise Duties and Service Tax
Drawback Rules, 1995.
(11) 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.
(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) In respect of the
tariff items in Chapters 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 or noil silk shall mean that the content in it of the
respective fibre is 85% or more by weight.
(14) Wherever specific rates have been provided
against tariff item in the
Schedule, the drawback shall be payable only if
the amount is one per cent
or more of free on board
value, except where the amount of
drawback per shipment
exceeds five hundred rupees.
(15) The expressions “when Cenvat facility has
not been availed”, used in the said Schedule, shall mean that the exporter
shall satisfy the following conditions, namely:-
(i) the exporter shall declare, and
if necessary, establish
to the satisfaction of the
Assistant Commissioner of Customs or Assistant Commissioner of Central Excise
or Deputy Commissioner of Customs or Deputy Commissioner of Central Excise, as the case may be, that no
Cenvat facility has been availed for any of the inputs or input services used
in the manufacture of the export product;
(ii) if
the goods are exported under bond or claim for rebate of duty of central
excise, a certificate from the Superintendent of Customs or Superintendent of
Central Excise in-charge of the factory of production, to the effect that no
Cenvat facility has been availed for any of the inputs or input services used
in the manufacture of the export product, is produced:
Provided
that the certificate regarding non-availment of
Cenvat facility shall not be required in the case of exports of handloom
products or handicrafts (including handicrafts of brass artware) or finished leather and other export products
which are unconditionally exempt from the duty of central excise.
(16) 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 cases of doubt or where there
is any information contrary to the declarations, the proper officer of customs
shall cause a verification of such declarations.
(17) The term ‘article of leather’ in Chapter
42 of the said Schedule shall mean any article wherein 60% or more of the outer
visible surface area (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.
(18) The term “dyed” in relation to fabrics and
yarn of cotton, shall include “bleached or mercerized or printed or mélange.”
(19) The term “dyed” in relation to textile
materials in Chapters 54 and 55 shall include “printed or bleached”.
(20) 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: -
(a) French
point or Paris point or Continental Size above 33;
(b)
English or UK adult size 1 and above;
(c)
American or USA adult size 1 and above.
(21) 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: -
(a)
French point or Paris point or Continental Size upto 33;
(b)
English or UK children size upto 13;
(c)
American or USA children size upto 13.
(22) The drawback rates specified in the said
Schedule against tariff items 711301 and 711302 shall apply only to goods
exported by airfreight, post parcel or authorised courier through the Custom
Houses as specified in para 4A.12 of the Hand Book of Procedures (Vol. I),
2009-14 published vide Public Notice No.1/2009-14 dated 27th August,
2009 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
or silver jewellery. The Free on Board (FOB) value of any consignment through
authorised courier shall not exceed rupees twenty lakhs.
(23) The
drawback rates specified in the said Schedule against tariff items 711301 and
711302 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 from local sources of gold or silver.
2. All
claims for duty drawback shall be filed with reference to the tariff items and
descriptions of goods shown in columns 1 and 2 of the said Schedule
respectively.
3. This
notification shall come into force on the 1st day of October, 2011.
[F. No. 609/81/2011-DBK]
(Najib Shah)
Joint Secretary to
the Government of India