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TMI BlogAll Industry Rates of Drawback, 2006-07- rates effective from 15.7.2006X X X X Extracts X X X X X X X X Extracts X X X X ..... determined on the basis of certain broad parameters including, inter alia, the prevailing prices of inputs, standard input/ output norms (SION) published by DGFT, share of imports in the total consumption of inputs and the applied rates of duty. As education cess is being collected as duties of excise/customs, the element of education cess has been factored in the drawback rates. The incidence of duty on HSD/Furnace Oil has also been factored in the drawback calculation. 3. A significant feature of the new Drawback Schedule is that the drawback rates now also take into account the incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods. For this purpose, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revised upwards to 7.2% with a cap of Rs.19/kg from the existing rate of 6.5% with a cap of Rs.17/kg. The dyed yarn - hosiery grade carries a higher rate of 8.3% with a cap of Rs.23/kg. The drawback rates on blended yarn and fabrics have been revised upwards accordingly. c) Cotton Yarn and Fabrics : The new drawback rate for grey cotton yarn of less than 60 counts is 4% with a cap of Rs.8/kg as against the existing rate of 3.5% with a cap of Rs.7/kg. The new rate for dyed cotton yarn of less than 60 counts is 5% with a cap of Rs.13.30/kg. In respect of cotton yarn of 60 counts and more, a higher rate of 6.8% / 7.8% with a cap of Rs. 20.40 per kg / Rs. 26 per kg has been provided depending upon whether the yarn is grey or dyed. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drawback rates on woven garments have been revised accordingly. As for ready made garments made up of silk and wool the rate provided is 6.7% with varying caps. f) Made Ups: In the made up category, the new drawback rate for bed linen, table linen, toilet linen, kitchen linen and curtains of cotton is 6.4% with a cap of Rs.64 per kg as against the existing rate of 5% with a cap of Rs.50 per kg. The new drawback rates on made-ups of manmade fibres and made-ups of silk/wool have also been revised upwards. The new rates are 7.5% and 6.9% respectively as against the existing rate of 6%. ii) Leather and Leather Articles (Chapters 41-42 64) 6. The new drawback rate for finished leather is 6.6% with a cap of Rs.7 per sq.ft. as aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h artware/handicrafts of copper where the drawback rate has been increased from 11% with a cap of Rs.44/kg to 15% with a cap of Rs. 110/kg. 7.2 In the case of stainless steel cutlery falling under Chapter 82, the drawback rate has been increased to 15% in line with duty drawback on stainless steel utensils. The same is the case with brass hardware items and other similar items under chapter 83 where the drawback rate is being provided at 15% on par with brass handicrafts. iv) Machinery and Equipment (Chapters 84 and 85) 8. For machinery items falling within Chapter 84, the existing drawback rates are mostly in the range of 1.5%-3% (all customs). The rates have been reduced proportionately in line with reduction in peak duty from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2%-3%. In the case of zinc oxide - IP / BP / USP Grade, the new drawback rate is 5.5% (customs) as against the present rate of 9.6% [5.7% (excise component) + 3.9% (customs component)]. Following a request from the Department of Commerce (DOC) and after examination of the cost data, for the first time a drawback rate of Rs.1050/MT (all customs) has been provided in respect of Furnace Oil and HSD supplied by domestic oil companies to the Units located in SEZs. Hitherto, the drawback was being determined and paid by DOC. Drawback on Cotton Bags, Leather Caps and Plastic Combs 12. In the wake of switchover to HS classification system, three products viz. cotton handbags, leather caps and plastic combs became ineligible for drawback. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quired to fulfil the stipulated conditions for availing of drawback. 13. The notification and the new Drawback Schedule may be gone through carefully to note the changes made therein. Though all care has been taken in formulating / publishing the rates, the possibility of inadvertent errors / omissions cannot be ruled out. It is requested that any error / omission noticed during the implementation of the rates may be brought to the notice of the Board immediately for suitable corrective action. 14. The Commissioners may kindly ensure that a quick and efficient administrative system is in place to deal with all drawback claims for hassle-free crediting of drawback the moment the exports take place. In particular, they may ensure that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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