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TMI BlogAll Industry Rates of Drawback and other Drawback related changes -reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... ) dated 31.10.2016 which comes into force on 15.11.2016. These AIRs take into account relevant broad average parameters including, inter alia, prevailing prices of inputs, input output norms, share of imports in input consumption, the rates of central excise and customs duties, incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods, incidence of duty on HSD/furnace oil, value of export goods, etc. The notification may be downloaded from Board‟s website and carefully perused for details of the changes. Some of the changes are highlighted below (a) AIRs have been provided to certain worked articles under chapters 45, 46 and 68; (b) Certain products, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chapter 42 of the Drawback Schedule has been expanded to include any article wherein 60% or more of the outer and inner surface area taken together is of leather. This is in the light of newer design and commercial practices; (f) Residuary rate (customs) provided to items across various chapters has been reduced from 1.9% to 1.5% and from 1.4% to 1.1%. 2. The notification also specifies the alternative AIRs on garment exports made against the Special Advance Authorization ( para 4.04A of FTP 2015-20 ) in discharge of export obligations in terms of Notification No. 45/2016-Customs dated 13.8.2016 . For claiming these alternative AIRs, the relevant tariff item has to be suffixed with suffix C‟ or suffix D‟ for the situa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ze; and (b) where smaller packs made of packaging material other than that described in the tariff line are packed in larger master packs made of the material specified in the tariff line, the drawback rate eligible shall be the drawback rate appropriate to the size of the master pack. 5. It is noted that field formations intermittently raise the issue, with exporters, of admissibility of drawback on parts of machinery under individual drawback tariff lines where the AIR is provided at 4-digit level but the 4-digit description does not specifically indicate the word parts . In the Drawback Schedule‟s notification‟s notes and conditions it is specified that the tariff items and description of goods in the Drawback Schedule ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dequate care at the time of export. Further, in case of claim of the composite (higher) rate of AIR, the processing should specifically ensure availability of Non-availment of Cenvat certificate‟ etc. at the export stage itself. In the case of AIR claim against tariff item numbers 711301, 711302 or 711401 the availability of exporter‟s declaration as per Circular No.30/2016-Customs should be ensured and recorded at the Let Export Order stage by the Customs officer. 8. There is also need for continued scrutiny for preventing any excess drawback arising from mismatch of declarations made in the Item Details and the Drawback Details in a shipping bill. It may continue to be ensured that exporters do not avail of the refund of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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