Public Notice No. 45/2003, Dt. 30.04.2003

Duty Drawback of Composite Items

1. Attention of all the Exporters, CHA and other concerned is drawn to General Note 11 to Customs Notification No. 33/2002 Cus (N.T.) dated 29.05.2002. In terms of the said note if a composite article is exported for which any specific rate has not been provided in the Duty Drawback Table, duty drawback can be extended to the composite articles according to the net content of various constituent materials at the rate of duty drawback applicable in such materials in the Drawback Table. However, such extention of drawback is subject to the condition that various constituent materials are visibly distinguishable and their weights unambiguously verifiable.

2. The trade has however been representing that on occasions it becomes difficult to resolve the composite article into its constituent components and the only alternative is to break the article. This result in wastage of the products and also the exporters are asked to go for laboratory testing to ascertain the composition of individual materials.

3. This issue has been considered by the Kelkar Committee and based on its recommendations, the Board has decided that as a general policy, the weight of the constituent material in a composite item as declared by the exporters should be accepted. The verification can be caused only in cases of doubt or if there is intelligence to the contrary.

4. Contents of this notice may be brought to the notice of all concerned and trade constituents in particular.

(K. K. AGGARWAL)
COMMISSIONER OF CUSTOMS (G)

File No. S/10-32-DBK/2003 CFS (M)

Circular No. 9/2003-Cus dated 17.02.2003 of Govt. of India, Ministry of Finance & Company Affairs, Deptt. of Revenue in File No. 609/162/2002-DBK dated 17.02.2003.

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