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TMI BlogRegarding All Industry Rates of Duty Drawback, 2011-12.X X X X Extracts X X X X X X X X Extracts X X X X ..... -12 vide Notification No. 68 / 2011- Cus. (N.T.), dated 22.09.2011. The rates of duty drawback are effective from 01.10.2011. The Notification may please be downloaded from CBEC website www.cbec.gov.in and perused for details. 2. As in previous years, the drawback rates have been determined on the basis of certain broad parameters including, inter alia, the prevailing prices of inputs, Standard Input Output Norms (SION), share of imports in the total consumption of inputs, FOB value of export goods and the applied rates of duty. The incidence of duty on HSD/Furnace Oil has been factored in the drawback calculations. The incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the DEPB Scheme, major exporters operating under the DEPB Scheme are mainly from the Engineering sector including the auto and auto component industry, Chemicals, Pharmaceuticals, Textiles and the marine sector. It has been decided to provide a smooth transition for items in these sectors while incorporating these in the drawback schedule. As a transitory arrangement, these items will suffer a modest reduction from their DEPB rates, ranging from 1% to 3% for most items. 6. Presently, the DEPB rates are available for two wheelers, three wheelers, commercial vehicles and tractors. Appropriate duty drawback rates have been provided for these items in the proposed schedule without any value cap. Exporters of passenger cars are presently o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailed for any of the inputs or input services used in the manufacture of the export product, the composite rate of drawback is permissible on export of such goods. The expression "When Cenvat facility has not been availed", in Para 15 of the above mentioned notification, as far as the drawback provisions are concerned, has always meant Cenvat facility on inputs and input services, and is to be understood as such .The drawback notification has been suitably amended to further clarify the matter. 9. There has been some confusion regarding the eligibility of drawback rates for tufted bath mats made of cotton. A new entry has been created under the 4-digit category 5703 which specifies the applicable rate for tufted floor-coverings etc. made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that drawback is to be allowed for articles under tariff items 7323 of the drawback schedule without making any deduction towards the lids, handles etc. provided they retain the character of iron or steel articles classifiable under the said tariff item. It is clarified that the same logic shall also be applicable for the goods falling under tariff items 8211 and 8215 of the drawback schedule. 13. There has been a dispute regarding classification of FIBC (Flexible intermediate bulk containers). It has been represented that the field formations are classifying the FIBCs under Chapter 39 whereas the FIBC finds a specific mention under tariff item 630502 of the drawback schedule and the exporters are being denied drawback mentioned against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notices/Standing Orders may be issued in this regard.
15. The Notification and the new Drawback Schedule may be perused carefully to note the changes made therein. Though all care has been taken, the possibility of inadvertent errors/omissions cannot be ruled out. It is requested that any error/omission noticed during the implementation of the rates be brought to the notice of the Board immediately for suitable corrective action.
16. The Public Notice and Standing Order for guidance of the trade and staff may be issued. Difficulties faced, if any in implementation of the changes may be brought to the notice of the Board at once.
Kindly acknowledge receipt of this Circular.
(Najib Shah)
Joint Secretary (Drawback) X X X X Extracts X X X X X X X X Extracts X X X X
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