 |
OFFICE OF THE
COMMISSIONER OF CUSTOMS, |
PUBLIC
NOTICE NO. 115 /2001
Sub: Duty Drawback on ready-made Garments in the wake
of levy of
Terminal
Excise Duty - regarding.
******
Government of India, Ministry of
Finance, Department of Revenue, New Delhi, Drawback Circular No.25/2001-Cus.
Vide F.No.609/46/2001-DBK dated 24.04.2001, is reproduced below for the
guidance of the importers, clearing agents and trading staff.
Sd/-
C11/35/2001-AP (PORT)
(HEERA RADHAKRISHNAN)
CUSTOM HOUSE, CHENNAI-1. COMMISSIONER OF CUSTOMS
(PORT)
DATE : 12.06.2001
________________________________________________________________________
DRAWBACK CIRCULAR NO.25/2001-CUS.
F.NO.609/46/2001-DBK
DATED 24.04.2001
In
terms of Chapter 4 of the Finance Bill, 2001, amongst other proposals of
Central Excise Taxes, it has been proposed to subject ready-made garments and
clothing accessories bearing a registered brand name or sold under a registered
brand name, and falling under Central Excise Tariff Headings 62.01 and 62.02,
to a Cenvat levy of 16% ad valorem with effect from 1.3.2001.
2. As
these goods were not chargeable to any terminal excise duty in the past, the drawback
rates for the same had been worked out by taking into account both the Customs
and Central Excise duties on the inputs and the availment of drawback benefits
was not subject to any condition of non-availment of Cenvat facility. In order
to avoid any double benefits to the exporters as well as to obviate the
possibility of any harassment at the field level, the admissibility of drawback
to the goods covered by the entries appearing at SS No.62.01, 62.08, 62.13,
62.15, 62.16, 62.17, 62.18, 62.19, 62.20, has been made subject to the
condition “when Cenvat facility has not been availed”. However, in those cases
where the exporters avail of Cenvat facility, the admissibility of Customs
allocation merits to be made available. Therefore, 8 new SS Numbers, viz, at SS
No.62.011, 62.081, 62.151, 62.161, 62.171, 62.181, 62.191 and 62.201 have been
added to the Drawback Table with drawback rates equivalent to the Customs
allocations along with proportionate drawback caps. A Notification
No.16/2001-Cus (N.T.) has been issued on 20th April, 2001 to this
effect and the same is effective for all exports effected from 1.3.2001.
3. Board
appreciates that majority of exporters of these goods may not be coming under
the Central Excise net. Therefore, the exporters of these goods may be allowed
higher drawback in the existing entries subject to furnishing of a declaration
:-
(a) that the
goods do not bear any registered brand name and the exporters are not liable to
pay any Central Excise duty on the goods as these are completely exempt under
exemption notification 12/2001-CE and
(b) that the
exporters are not registered with Central Excise and are not availing any
Cenvat credit facility for the inputs used in the manufacture of the goods
under exports.
4 Therefore,
once a declaration as aforesaid is made and the goods are not found to be
exported under AR-4 procedure of Central Excise (which is required to be
followed only by excise duty paying manufacturers for goods cleared for
exports. Custom Houses need not insist on any further certificate from the
concerned jurisdictional officers of Central Excise about availment or
otherwise of the Cenvat credit facility.
ATTESTED
(S.
SANKARAVADIVELU)
DY. COMMR.
OF CUSTOMS (APPG.)
