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OFFICE
OF THE COMMISSIONER OF CUSTOMS, |
PUBLIC NOTICE NO. 337 /2001
Sub: Processing of drawback shipping
bills filed by Merchant
Exporters on export of readymade garments – Requirement
of non-availment of MODVAT/CENVAT certificate for
claiming Central Excise portion – Procedure – Reg.
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Extract of relevant
portions of Ministry’s Circular No.54/2001-Customs issued under Reference
F.No.609/107/2001-DBK dated 19.10.2001 on the above subject is reproduced below
for information and guidance of the importers, clearing agents and trading
public.
(JOSEPH DOMINIC)
COMMISSIONER OF CUSTOMS(SEA)
F.No.
Ref.No.S.Misc.449/2001-EDI-DBK
Custom House,
Chennai.
Date: 10 .12.2001
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COPY OF MINISTRY’S CIRCULAR NO.54/2001-CUSTOMS
F.NO.609/107/2001-DBK
All categories of
readymade woven garments (other than raincoats, undergarments and clothing
accessories) falling under Chapter 62 of the Customs & Central Excise
Tariff Act are now subject to Central Excise levy as a result of the changes
announced in the Union Budget, 2001-2002 (Finance Bill stage and those made
thereafter till the Finance Bill was enacted).
Though normally it is the actual manufacturer who is to pay duty of excise
leviable on any commodity, considering the peculiar and very decentralised
nature of garment producing sector certain special provisions have been made,
wherein the merchants who get their garments produced by supplying materials to
producing job working units have been recognised for registration/duty payment
etc. purposes. Vide Rule 4(3) of
Central Excise (No.2) Rules, 2001, a merchant manufacturer, i.e. a merchant,
who gets the goods manufactured from a job worker on his own account, is
required to pay duty on the garments manufactured on his behalf onjob work
basis, either himself or authorise such job worker(s) to pay duty on his
behalf. When merchant manufacturer pays
duty, he is also entitled to avail of CENVAT for inputs procured and used for
garment production by job workers.
2. Since the manufacturer or
merchant manufacturer whose domestic turnover exceeds rupees one crore has to
pay excise duty and can avail of CENVAT credit in respect of inputs used in the
manufacture of woven garments, separate drawback rates have been provided with
effect from 7.6.2001 for the garments where CENVAT facility is availed or not
availed. In case the CENVAT facility is
availed, the drawback rate has only Customs allocation and if such facility is
not availed, the rate includes both the Customs & Central Excise
allocations. It has been brought to the
notice of the Board that the Customs formations while scrutinising Drawback
claims of woven garments exporters are insisting on the production of the
certificate evidencing non-availement of CENVAT facility in every case. This is stated to be causing undue hardship
to garment exporters – very large number of which are said to be only merchant
manufacturer who are basically export oriented and whose domestic clearances
are nil or negligible.
3. Export Organisations
have, however, represented that in the present scenario where a merchant
getting the goods manufactured from other manufacturers/job workers is under
liability to pay the Central Excise duty and especially since such
manufacturers/ job workers are scattred, it is not possile to furnish such
certificate in every case. Further, it
has also been represented that most of garment exporters are
merchant-manufacturers who are exempted from the levy of Central Excise as
their domestic clearances do not exceed Rs.1 crore. They have, therefore, requested that instead of insisting on a
CENVAT non-availment certificate in every case, drawback at higher rate may be
permitted on the basis of suitable declaration from such exporters. The
Departmetn could check independently if need be to check its veracity.
4. The issue and request has
been examined and the production and export pattern and system of excise
control and duty payment/CENVAT in garment industry also looked into. It is observed that in the case of the goods
manufactured by manufacturer- exporters, thee shall not be any difficulty in
verifying the declaration that CENVAT facility has not been availed in as much
as for dutiable garments, if cleared for export under bond-rebate claim, movement
has to be made under ARE-1 and such exporters can evidence the same through production of an ARE-1
issued.
5. For the exports, where
ARE-1 is not issued it has been decided that they should clearly declare on the
Shipping Bills, the name(s) of the job worker(s)/supporting manufacturing
unit(s) through whom the garments covered by the Shipping Bill have been
manufactured. Where the shipping bill
has been filed in EDI system such declaration should be filed with A.O. examining
the goods and the A.O. will make appropriate comments using departmental
comments, facilities in EDI. These
exporters shall also be required to give a declaration in the format given in
the Annexure-I certifying interalia that they are not registered with the
Central Excise and that they are not paying any Central excise duties and not
availing of the CENVAT facility and that they have not authorised any
supporting manufacturer/job worker to pay excise duty and comply with the
provisions of Central Excise (No.2) Rules, 2001.
6. These exporters shall
also be required to furnish a certificate-cum-decaration as given in
Annexure-II, from their supporting manufacturers/job workers interalia
clarifying that they are manufacturing and supplying garments to this
particular merchant exporter only and that they are not registered nor availing
of any CENVAT facility for any garments manufactured by them. The fact that exporter has filed this
declaration should also be entered in the departmental comments.
7. Such
merchant-manufacturer exporters can be allowed higher drawback on the basis of
these declarations. (Annexure I
&
Annexure II enclosed)
// ATTESTED //
(S.
SANKARAVADIVELU)
DY.
COMMISSIONER OF CUSTOMS (APPG)
Exporters’ Declaration required for Exports of Woven Garments for availing higher All Industry Rate of Drawback
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(Circular No. 54/2001-Cus, dated
19th October, 2001). |
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1 |
Description of the Goods: |
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2 |
Invoice No. and Date: |
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3 |
Name and address of the Exporter alongwith the name of the
Jurisdictional Central Excise Commissionerate / Division / Range: |
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4. Name of the Supporting Manufacturer (s) / Job worker (
s) alongwith the name of the Jurisdictional Central Excise Commissionerate/
Division/Range: |
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5 |
Address of the Manufacturing Unit(s)/ Job Work Premises: |
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We, M/s. _________________ , the Exporters of the above
mentioned goods, hereby declare that - |
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(a) we are
not registered with Central Excise authorities, (b) we have not paid any Central
Excise duty on these goods, and (c) we have not availed of the
Cenvat facility under the CENVAT Credit Rules, 2001 or any notification
issued thereunder, and (d) we have not authorised any supporting
manufacturer/job-worker to pay excise duty and discharge the liabilities and
comply with the provisions of Central Excise (No.2) Rules, 2001, under the
proviso to Rule 4(3) of the said Rules. We also undertake that in case it is discovered
that the Cenvat facility has been availed by us or by our supporting
manufacturers in respect of these export goods, we shall return the excess
drawback paid to us on the basis of above declaration. Exporters' Signature & Seal |
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Supporting
Manufacturers'/Job Workers' Declaration required for Exports of Woven
Garments for availing higher All Industry Rate of Drawback. (Circular No.54/2001-Cus,
dated 19th October,2001). |
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1 |
Description of the Goods: |
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2 |
Invoice No. and Date: |
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3 |
Name and address of the Exporter alongwith the name of the
Jurisdictional Central Excise Commissionerate / Division / Range: |
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4 |
4. Name of the Supporting Manufacturer (s) / Job worker (
s) alongwith the name of the Jurisdictional Central Excise Commissionerate/
Division/Range: |
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5 |
Address of the Manufacturing Unit(s)/ Job Work Premises: |
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We, M/s. _________________ , the supporting manufacturers
/ job workers, hereby, declare that - |
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(a)
are not registered with Central Excise authorities, |
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We
also declare that we are manufacturing and supplying garments to the above
merchant exporters only. Supporting Manufacturers'/Job
Workers' Signature & Seal |
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