Eligibility of duty free import of embellishments used in the manufacture of wallets and purses under Sr. No. 167A of Customs Notification No. 21/2002-Cus. under 1% scheme - Regarding - Customs - 092/02

Circular No. 92/2002-Cus., dated 20-12-2002 F. No. 609/218/98-DBK Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Eligibility of duty free import of embellishments used in the manufacture of wallets and purses under Sr. No. 167A of Customs Notification No. 21/2002-Cus. under 1% scheme - Regarding In terms of Sr. No. 167A read with condition No. 21A of jumbo Customs Notification No. 21/2002-Cus., dated 1-3-2002, as amended, inter alia duty free import of embellishments required in the manufacture of handbags and similar containers all made of leather is allowed under 1% scheme. On account of not defining the term "handbags and similar containers all made of leather" as appearing in condition 21A of this serial number, doubt has been expressed whether products namely , purses and wallets both made of leather would get covered under it. 2. The issue is examined in Board and it is clarified that purses and wallets both made of leather would get covered under the broad heading of "handbags and similar containers all made of leather" as specified in condition 21A of said Sr. No. 167A. In other words, embellishment items which are specified in Sr. No. 167A of Notification No. 21/2002-Cus. and which are used in the manufacture of purses and wallets both made of leather would also be entitled for duty free benefit under 1% scheme provided the conditions of the said notification are satisfied. 3. Suitable Public Notice for the guidance of trade and standing order for the Departmental Officers may kindly be issued. 4. Receipt of this Circular may please be acknowledged.