[TO BE PUBLISHED IN PART II SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA (EXTRAORDINARY)]

DATED THE 16TH JULY, 2007

25  ASADHA, 1929(SAKA)

                                                                      

 

 GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

*** 

 

Notification  No. 68/2007 - CUSTOMS (N.T.) 

 

 

G.S.R.           (E).     In exercise of the powers conferred by sub-section (2)  and (3) of section 75 of the Customs Act, 1962 (52 of 1962), sub-section (2) and ( 2A) of section 37 of the Central Excise Act, 1944 (1 of 1944), and section 93A, and sub-section (2) and (3) of section 94 of the Finance Act, 1994 (32 of 1994) read with rules 3, 4 and 5  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. 81/2006-Customs (N.T.), dated the 13th  July, 2006 [GSR 420(E),  dated the 13th July, 2006]  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 conditions specified hereunder, namely:-

 

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.

 

(2A)    Notwithstanding anything contained in the said Schedule, all artware and handicraft items shall be classified under the heading of artware/handicraft (of constituent material) as mentioned in the relevant chapters.

 

(3)       The figures shown in columns 4 and 6 appearing below the “Drawback Rate” 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.

 

(4)       The figures shown in columns 5 and 7 appearing below the “Drawback Cap” refer to the maximum amount of drawback that can be availed of per unit specified in column 3.

 

(5)       The figures shown under 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.

 

(6)       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.

 

(7)       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 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 per cent. 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 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;

 

            (f)        manufactured or exported in terms of sub-rule (2) of rule 19 of the Central Excise Rules, 2002;

 

            (g)       manufactured or exported availing of the facility under the Duty Entitlement Pass Book Scheme as contained in paragraph 7.14, read with  paragraph 7.17  of the Export and Import Policy 1997-2002 or manufactured or exported availing of the facility under the Duty Entitlement Pass Book Scheme as contained in paragraph 4.3 of the Export and Import Policy 2002-2007, notified  under  section 5 of  the  Foreign Trade  (Development  and  Regulation) Act, 1992 (22  of   1992), read  with   paragraph 4.37 of  the  Hand Book of  Procedures (Volume 1) issued in pursuance of  the  provisions  of  paragraph  2.4 of the said  policy or manufactured or exported availing of the facility under the Duty Entitlement Pass Book Scheme as contained in paragraph 4.3 of the Foreign Trade Policy 2004-2009, notified  under  section 5 of  the  Foreign Trade  (Development  and  Regulation) Act, 1992 (22  of   1992), read  with   paragraph 4.37 of  the  Hand Book of  Procedures (Volume 1) issued in pursuance of  the  provisions  of  paragraph  2.4 of the said  policy and that  shall remain in force until  the 31st  March, 2009.

 

(8)       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.

 

(9)       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.

 

(10)   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.

 

(11)     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.

 

(12)     The expression “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 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 the goods under export, 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.

 

(13)     Whenever a composite article is exported for which any specific rate has not been provided in the 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.  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.

 

(14)     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.

 

(15)     The term “dyed” in relation to fabrics and yarn of cotton, shall include “bleached or mercerized or printed or mélange.”

 

( 15A) The term “dyed” in relation to textile materials in Chapters 54 and 55, shall include “printed or bleached”.

 

(16)     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.

 

(17)  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.

 

3.                  All claims for duty drawback  shall be filed  with reference to the tariff items and descriptions  of goods shown in column 1 and 2 of the said  Schedule respectively.

 

4.                 This notification shall come into force  on the 18th day of July, 2007.  However,  notwithstanding  anything contained in the Notification No. 81/2006-Customs (N.T.), dated 13th July, 2006( GSR 420 (E) dated the 13th July, 2006), the following chapter/tariff items and the entries relating thereto in  the said Schedule shall be applicable retrospectively with effect from the 1st April 2007.

 

 

CHAPTER/TARIFF ITEM

CHAPTER/TARIFF ITEM

CHAPTER/TARIFF ITEM

CHAPTER/TARIFF ITEM

15131900

28276010

33071010

3918909002

15153010

28276020

33074100

39199090

22071090

28281010

34011110

3920 excluding  tariff item 3920000099

24022000

28281020

3401119001

3921909901

24039900

28301000

3401119002

3921909902

250410

28311010

34021190

3923 excluding tariff item 3923000099

25081090

28311020

34031900

3924 excluding tariff item 3924000099

271001

28319020

3404100001

3926 excluding tariff item 3926000099

271002

28332300

3404100002

4002700001

28030010

28332400

34049033

4002700002

28047020

28332500

35030010

4002700003

28091000

28332940

35030020

4002700004

28092010

28332990

3506919001

4002700005

28092020

28364000

3506919002

40094100

2811110001

28365000

35069991

40111010

2811110002

28366000

35069999

40111090

28111990

28371100

36050010

4011990001

28121020

28371910

36050090

4011990002

28121030

28371990

38029019

4011990003

28139090

28391100

38040090

40132000

28151110

28391900

3808 excluding tariff item 3808000099

40139090

28152000

28412010

3811900001

40141010

2817001001

28415090

3811900002

40149010

2817001002

28416100

38122090

4016 excluding tariff item 4016000099

28183000

28470000

38123090

410701

28230010

28480020

38151900

410702

28241010

2852 excluding tariff items 285210 and 285299

38249022

411201

28242000

29173600

38249024

411202

28249000

3204000043

38249025

411301

28261110

3204163004

38259000

411302

28261200

3204168003

3917239001

4114

2826199001

33030090

3917239002

42 excluding tariff items 420304 and  4206

2826199002

33049910

3917239003

430301

28273200

3304992001

39181010

44119900

28273201

3304992002

3918109001

4412999001

2827399001

3306102001

3918109002

4412999002

2827599003

3306102002

3918909001

4412999003

 

 

 

 

48026120

54

721904

871601

48026130

55

73 excluding tariff items 7301 to 7306  and  732606

871602

48026210

56

7418

90 excluding tariff items 900101 and  900102

48030010

57 excluding tariff item 570299

7419 excluding tariff items 741905 and 741906

91 excluding tariff items 9101, 911101, 911201 and  911301

48030020

58

7615

92

48030090

59

7616

94

48041100

60

82 excluding tariff item 8209

95 excluding tariff items 950403 and 95069962

4817100001

61

83 excluding tariff item 8311

96 excluding tariff items 9601 to 9606, 96083920 to   96083999, 96086090, 96089110, 96089199 to 96089999, 9609 to 9614, 961503 and 9618

4817100002

62

8413 excluding tariff items 841307 to 841310

29089090

4817100003

63 excluding tariff items 630503, 6309 and 6310

842301

29214516

48180001

64 excluding tariff items 6401, 640202, 640311, 640402, 6405, 640613 and 640699

843201

 

48191001

6506 excluding 650699

843202

48191002

6804229001

843203

4820  excluding 4820200099

6804229002

843204

48211010

68113010

 

4823 excluding  tariff item 4823000099

6908909001

848101

4901990001

6908909002

848301

4901990002

70023900

848302

49029020

70031290

848303

4905 excluding tariff item 4905900099

70051090

848304

50 excluding tariff items 5001 to 5003

70091090

848305

51 excluding tariff items 5101 to 5104 and 510502

70133100

8484

52 excluding  tariff items 5201 to 5203

70139990

8708 excluding tariff item 8708048

530601

70179010

871101

530602

70181020

871102

5307

70200090

871201

530901

70200091

8714

530902

7117 excluding tariff item 7117000099

8715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(P. K. MOHANTY)

 

 

JOINT SECRETARY TO THE GOVERNMENT OF INDIA

 

 

 

 

F. No. 609/10/2007-DBK

 

 

 

 

 

 


 


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