9911796707
TMI BlogClassification of artware / handicraft items and composite goods in the Drawback Schedule - regX X X X Extracts X X X X X X X X Extracts X X X X ..... ification of artware / handicraft items and composite goods in the Drawback Schedule - reg. It has been brought to notice of the Board that difficulties are being faced by exporters in classification of articles declared as handicraft/artware items. It has also been brought to notice that divergent practices are being followed in classifying the goods made of different constituent materials in the Drawback Schedule and applying Note 14 of the Drawback Schedule, notification No.103/2008-Cus (N.T.), dated 29.08.2008 in this regard. 2. The matter has been examined. I am directed to state that it may be recalled that the Board vide circular no. 128/39/95-CX, dated 25.5.1995 had clarified that since the office of Development Commissioner (H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise and after discussions with the certificate issuing authority. The exports should not, in the mean time, be held up. 5. Doubts have also been expressed relating to interpretation of note and condition (3) of the Drawback Schedule notification No.103/2008-Cus (N.T.) dated 29.08.2008. The note and condition provides as follows: "Notwithstanding anything contained in the said Schedule, all artware or handicraft items shall be classified under the heading of artware or handicraft (of constituent material) as mentioned in the relevant Chapters." The essence of this condition is that while the Drawback Schedule is aligned with the Customs Tariff at the 4 digit level, this alignment is not applicable to Artware/Handicraft items. Artwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion No. 14 of the Drawback Schedule notification ibid, provides that whenever a composite article is exported for which any specific rate has not been provided in the said Schedule, the rates of drawback applicable to various constituent materials can be extended to the composite article according to net content of such materials. It may be noted that this Note is applicable only to composite articles for which no specific rate has been provided in the Drawback Schedule and not to articles which fall in one or the other headings/sub-headings of the Drawback Schedule (which could be a residuary heading 'others') and have a drawback rate. Therefore, it is clarified that articles made of more than one constituent material should be classified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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