PUBLIC NOTICE NO:  70 / 2001

 

Sub: Duty Drawback on embroidered silk garments – regarding.

 

            Govt. of India, Ministry of Finance, Department of Revenue, New Delhi, Drawback Circular No.108 / 2000-Customs vide F. No.609 / 154/2000 – DBK dated 20.12.2000 vide F.No.609/154/2000–DBK,  is reproduced below for guidance of Importers, Clearing Agents and Trading Public.

 

C11/8/2001 AP (PORT)                                                                         (T.S. JAYACHANDAR)
CUSTOM HOUSE, CHENNAI                                                 ASST. COMMR. OF CUSTOMS(APPG.)

DATED:   04.04.2001

 DRAWBACK CIRCULAR NO. 108 / 2000 – DBK.
F.NO . 609 /154/2000 – DBK DATED 20.12.2000

 

            A representation has been received from the Indian Silk Export Promotion Council, New Delhi, that their exports of beaded and embroidered silk garments are being denied drawback under SS No.62.06 for the reason that the said entry does not cover embroidered garments and also under SS No. 6207 on the premise that the garments entered for export are not manufactured by using import beads and sequins.

 

2.                  The issue has been examined in the Board.  It is clarified that the drawback rate under SS No.62.07 has been determined by taking into account the duty incidence in respect of imported glass beads, sequins, lining and zippers.  This rate does not rebate duty incidence on account of silk as the data submitted by the Council for the relevant entry “Natural Silk high fashioned ready-made garments…” indicated that the silk used was imported duty free under the Advance Licence Scheme.  On the other hand, the drawback rate under SS No.62.06 is intended to rebate duty suffered on the input, i.e., silk.

 

3.         The Board is of the view that the denial of drawback to embroidered silk garments would be against the principal of equity as the exporters of embroidered silk garments have at least suffered duties on the raw material “silk”.  Therefore, in the interest of trade, it has been decided that the embroided garments (including those embroidered with metallised yarn) be given drawback under SS No.62.06.  However, for the purpose of granting drawback, the value of embroidery/beads/ sequins should be excluded from the total f.o.b. value.  The exporters should, therefore, be specifically advised to declare the value of embroidery, beads and sequins separately on the shipping bills. 

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