Classification of artware / handicraft items and composite goods in the Drawback Schedule - reg

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..... llate Tribunal, New Delhi. Sir/Madam, Sub: Classification 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 ma .....

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..... pment Commissioner (Handicrafts)/EPCH certifying the goods as artware/handicraft should be taken only with the approval of the Commissioner of Customs/Central 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 .....

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..... ware items with coating/ plating unless specifically provided otherwise. 7. Problems have also been reported in classification of composite articles. Note and condition 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 co .....

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