Revision of All Industry (AIRs) of Duty drawback - Customs - PUBLIC NOTICE NO. 07/2019-20

OFFICE OF THE COMMISSIONER OF CUSTOMS, G. S. T. BHAWAN, 41/A, SASSOON ROAD, PUNE-411001 F. No. VIII/Cus/Tech/PN/48-123-19-20 Dated: 07/02/2020 PUBLIC NOTICE NO. 07/2019-20 Subject - Revision of All Industry (AIRs) of Duty drawback - regarding Attention is invited to Circular No, 06/2020 - Customs dated 30 th January, 2020 , issued by the Central Board of Indirect Taxes Customs, New Delhi, vide F. No. 609/11/2020-DBK. The matter pertains to ' Revision of All Industry (AIRs) of Duty Drawback '. The Government has notified the revised rates of Duty Drawback, also referred to as All Industry Rates (AIR), vide Notification No.07/2020-Customs (N.T.) dated 28.01.2020, which will come into force on 04.02.2020. 2. The Notification may be downloaded from the Board's website and carefully perused for details. (i) The salient features ofthe revised rates of Duty Drawback are as follows - Each tariff item in the Schedule annexed to the above mentioned Notification has been provided with an AIR specified under column (4) with cap of Duty Drawback amount given under column (5) in the Schedule. For claiming these AIRS, the relevant tariff item have to be suffixed with suffix 'B' e.g. for export of goods covered -under tariff item (TI) 610901, the drawback serial no. should be declared as 610901B; (ii) The notification also specifies in the Table annexed thereto, lower AIRS on export of items covered under Chapters 61 and 62 ofthe Schedule (viz. articles of apparel and clothing accessories) made under Special Advance Authorization Scheme (para 4.04A of Foreign Trade Policy 2015-20) in terms of Notification No. 45/2016-Customs dated 13.08.2016. For claiming th9 alternative AIR, the relevant tariff item has to be suffixed with suffix 'D' instead of the usual suffix 'B' mentioned above; (iii) AIRS of Duty Drawback have been increased for certain items pertaining to marine products and seafood (Chapter 3, 15, 16, 23), chemicals (Chapter 29), finished and lining leather, leather articles and footwear (Chapter 41, 42 and 64), cotton and MMF textiles (Chapter 50 to 60), carpets (Chapter 57), made-ups (Chapter 63) and glass and glass ware (Chapter 70). The increase in AIRS is on account of various factors such as the changes in duties, price (CIF) of imported inputs, FOB value of export goods, import intensity of inputs etc.; (iv) AIRS have been rationalized for bicycles tubes (Chapter 40), wool yarn/fabrics/readymade garments (Chapter 51 and 61-62) and silk yarn/fabrics/readymade garments (Chapter 50 and 61-62) among other items on account of reasons such as decrease in BCD rate, changes in price (CIF) of imported inputs, FOB value of export goods, import intensity of inputs etc.; Contd.. (v) 31 new tariff items have been introduced in the Schedule pertaining to sectors viz. chemicals (18 items), textiles and readymade garments (6 items), leather articles and footwear (6 items) and glass handicraft/ art ware (I item). Descriptions of three tariff items in Chapters 42 viz. TIS 42020102, 42020204 and 42020302 have been revised for better product differentiation; (vi) 10 tariff items under Chapter 64 prescribing AIR of 0.4 per cent in case of export products manufactured by units operating under Section 65 of Customs Act, 1962 have been deleted as no drawback is admissible for such goods in terms of notes and conditions given in notification No. 07/2020- Customs (N.T.) dated 28.01.2020. (vii) Appropriate caps of duty drawback amount have been provided wherever felt necessary to prescribe upper limit of duty drawback. For items under TI 8701 (Tractors), TI 8703 (Motor gars and other motor vehicles) and TI 8708 (Parts and accessory of motor vehicles of headings 8701 to 8705), caps have been removed in the Schedule. 3. The concerned exporters, in case of any difficulty, are requested to approach the Deputy / Assistant Commissioner in charge of the Brand Rate Unit of the Commissionerate, located at E - Wing, IV Floor, GST Bhavan, Bund Garden Road, Purre- 411 001 (Phone No.020-26051846). Pune, Feb., 2020 (P. K. Behera) Commissioner