Circular No. 69/2000-Cus
 28-8-2000

F. No. 609/95/2000-DBK
Government of India
Ministry of Finance (Department of Revenue)
Central Board of Excise & Customs

Subject :- Duty Drawback on Silk Carpets and Synthetic Carpets – regarding.

            As a part of rationalisation of All Industry Rates of Duty Drawback, the SS No. 57.01 in Drawback Table, 1999-2000 relating to Floor Coverings, all sorts, has been trifurcated in the Drawback Table 2000-2001, into Woollen Floor Coverings (SS No. 57.01), Silk Floor Coverings (SS No. 57.03), and Synthetic Floor Coverings (SS No. 57.04), each having different drawback rate and drawback cap.

            Various field formations and trade organisations have expressed that such distinct drawback rates for different categories of floor coverings, entail meticulous examination of the cargo. It has been represented that mere visual examination is not enough to verify the type of input material used. It has also been highlighted that considering the dimensions of the export product and also its value, it is not feasible to draw sample for testing. It has been mentioned that such peculiar circumstances and detailed examination to obviate any revenue leakage results in delay of consignments and drawback claims remain unsettled for long. It, has, therefore, been requested that some procedure be devised to remove the difficulties.

            The issue has been examined in the Ministry. It is observed that normally there should not be any difficulty in examination of different kinds of carpets. It has, however, been decided that for fool-proof and expeditious examination and speedier disbursal of drawback, the field formations may constitute Expert Panels. Such Panels may have textile experts drawn from the Department and from the Export Promotion Council/Trade. Any doubtful cases may be referred for resolution to such Expert Panels.