[TO BE PUBLISHED IN PART II SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA (EXTRAORDINARY)]

DATED THE 16^TH JULY, 2007

25  ASADHA, 1929(SAKA)

 GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

*** 

                                                     Notification  No. 68/2007 - CUSTOMS (N.T.)                                                       

G.S.R.           (E).     In exercise of the powers conferred by sub-section (2)  and (3) of section 75 of the Customs Act, 1962 (52 of 1962), sub-section (2) and ( 2A) of section 37 of the Central Excise Act, 1944 (1 of 1944), and section 93A, and sub-section (2) and (3) of section 94 of the Finance Act, 1994 (32 of 1994) read with rules 3, 4 and 5  of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 (hereinafter referred to as the said rules) and in supersession of the notification of  the  Government  of  India  in  the Ministry  of  Finance (Department of Revenue) No. 81/2006-Customs (N.T.), dated the 13^th  July, 2006 [GSR 420(E),  dated the 13^th July, 2006]  except  as  respects  things  done  or  omitted  to be  done  before  such  supersession,  the Central Government  hereby   determines  the  rates  of  drawback  as  specified  in  the  Schedule  annexed hereto (hereinafter referred to as the said Schedule)  subject to the conditions specified hereunder, namely:-

Conditions:

(1)       The tariff items and descriptions of goods in the said Schedule are aligned with the tariff items and descriptions of goods in the First   Schedule to the Customs Tariff Act, 1975(51 of 1975) at the four-digit level only. The descriptions of goods given at the six digit or eight digit or modified six or eight or ten digits are in several cases not aligned with the descriptions of goods given in the said First Schedule to the Customs Tariff Act, 1975

(2)       The General Rules for the Interpretation of the First Schedule to the said Customs Tariff Act, 1975 shall mutatis mutandis apply for classifying the export goods listed in the said Schedule.

(2A)            Notwithstanding anything contained in the said Schedule, all artware and handicraft items shall be classified under the heading of artware/handicraft (of constituent material) as mentioned in the relevant chapters.

(3)       The figures shown in columns 4 and 6 appearing below the “Drawback Rate” in the Schedule refer to the rate of drawback expressed as a  percentage of the free on board ( f.o.b.) value or the rate per unit quantity of the export goods, as the case may be.

(4)       The figures shown in columns 5 and 7 appearing below the “Drawback Cap” refer to the maximum amount of drawback that can be availed of per unit specified in column 3.

(5)       The figures shown under drawback rate and drawback cap appearing below  the column “Drawback when Cenvat facility has not been availed” refer to the total drawback (customs, central excise and service tax component put together) allowable and those appearing under the column “Drawback when Cenvat facility has been  availed” refer to the drawback allowable under the customs component. The difference between the two columns refers to the central excise and service tax component of drawback. If the rate indicated is the same in both the columns, it shall mean that the same pertains to only customs component and is available irrespective of whether the exporter has availed of Cenvat or not.

(6)            Drawback at the rates specified in the said Schedule shall be applicable only if the procedural requirements for claiming drawback as specified in rules 11, 12 and 13 of the said rules, unless otherwise relaxed by the competent authority, are satisfied.

(7)       The rates of drawback specified in the said Schedule shall not be applicable to export of a commodity or product if such commodity or product is-

            (a)            manufactured partly or wholly in a warehouse under section 65 of the Customs Act, 1962 (52 of 1962);

            (b)            manufactured or exported in discharge of export obligation against an Advance Licence or Advance Authorisation issued under the Duty Exemption Scheme of the relevant Export and Import Policy or the Foreign Trade Policy:

Provided that where exports are made against Advance Licences issued on or after the 1st April, 1997, in discharge of export obligations in terms of notification No. 31/97 - Customs, dated the 1st April, 1997, or against Duty Free Replenishment Certificate Licence issued in terms of  notification No. 48/2000-Customs, dated the 25th April, 2000, or against  Duty Free   Replenishment  Certificate Licence   issued  in terms of  notification No. 46/2002-Customs,   dated the 22^nd  April, 2002, or against  Duty Free   Replenishment  Certificate Licence   issued  in terms of notification No. 90/2004-Customs, dated    the    10^th   September, 2004,   drawback at the      rate equivalent  to  Central Excise  allocation  of  rate of drawback  specified  in  the said Schedule shall be admissible subject to the conditions specified therein;

(c)            manufactured or exported  by a unit licensed as hundred per cent. Export Oriented Unit in terms of the   provisions of the relevant Export and Import Policy and the Foreign Trade Policy;

            (d)            manufactured or exported by any of the units situated in free trade zones or export processing zones or special economic zones;

            (e)            manufactured or exported by availing  the  rebate of  duty  paid  on  materials  used  in the manufacture  or  processing  of such  commodity  or  product  in terms of rule 18 of the Central Excise Rules, 2002;

            (f)            manufactured or exported in terms of sub-rule (2) of rule 19 of the Central Excise Rules, 2002;

            (g)            manufactured or exported availing of the facility under the Duty Entitlement Pass Book Scheme as contained in paragraph 7.14, read with  paragraph 7.17  of the Export and Import Policy 1997-2002 or manufactured or exported availing of the facility under the Duty Entitlement Pass Book Scheme as contained in paragraph 4.3 of the Export and Import Policy 2002-2007, notified  under  section 5 of  the  Foreign Trade  (Development  and  Regulation) Act, 1992 (22  of   1992), read  with   paragraph 4.37 of  the  Hand Book of  Procedures (Volume 1) issued in pursuance of  the  provisions  of  paragraph  2.4 of the said  policy or manufactured or exported availing of the facility under the Duty Entitlement Pass Book Scheme as contained in paragraph 4.3 of the Foreign Trade Policy 2004-2009, notified  under  section 5 of  the  Foreign Trade  (Development  and  Regulation) Act, 1992 (22  of   1992), read  with   paragraph 4.37 of  the  Hand Book of  Procedures (Volume 1) issued in pursuance of  the  provisions  of  paragraph  2.4 of the said  policy and that  shall remain in force until  the 31^st  March, 2009.

(8)       Where the export product is not specifically covered by the description of goods in the said Schedule, the rate of drawback may be fixed, on an application by an individual manufacturer or exporter in accordance with the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995.

(9)       The rates of drawback specified against the various tariff items in the said Schedule in specific terms or on ad valorem basis, unless otherwise specifically provided, are inclusive of drawback for packing materials used, if any.

(10)   The term “dyed”, wherever used in the said Schedule in relation to textile materials, shall include yarn or piece dyed or predominantly printed or coloured in the body.

(11)            Wherever specific  rates have been  provided  against  tariff item in the Schedule, the  drawback  shall be payable  only if  the amount is one  per  cent  or  more of  free on board  value, except  where the  amount of  drawback  per  shipment  exceeds  five hundred  rupees.

(12)     The expression “when Cenvat facility has not been availed”, used in the said Schedule, shall mean that the exporter shall satisfy the following conditions,    namely:-

            (i)            The  exporter shall declare,  and  if  necessary,  establish  to  the  satisfaction  of  the Assistant Commissioner of Customs or Assistant Commissioner of Central Excise or Deputy Commissioner of Customs or Deputy Commissioner of  Central Excise,  as the case may be, that no Cenvat facility has been availed for any of the inputs used in the manufacture of the export product;

            (ii)            if the goods are exported under bond or claim for rebate of duty of central excise, a certificate from the Superintendent of Customs or Superintendent of Central Excise in-charge of the factory of production, to the effect that no Cenvat facility has been availed for the goods under export, is produced:

            Provided that the certificate regarding non-availment of  Cenvat facility shall not be required in the case of exports of handloom products or  handicrafts(including handicrafts of brass artware) or  finished leather and other export products which are unconditionally exempt from the duty of  central excise.

(13)            Whenever a composite article is exported for which any specific rate has not been provided in the Schedule ,  the rates of drawback applicable to various constituent materials can be extended to the composite article according to net content of such materials on the  basis of  a  self-declaration to be  furnished  by the  exporter  to this  effect.  In cases of doubt or where there is any information contrary to the declarations, the proper officer of customs shall cause a verification of such declarations.

(14)     The term ‘article of leather’ in chapter 42 of the said Schedule shall mean any article wherein 60% or more of the outer visible surface area (excluding shoulder straps or handles or fur skin trimming, if any) is of leather notwithstanding that such article is made of leather and any other material.

(15)     The term “dyed” in relation to fabrics and yarn of cotton, shall include “bleached or mercerized or printed or mélange.”

( 15A) The term “dyed” in relation to textile materials in Chapters 54 and 55, shall include “printed or bleached”.

(16)     In respect of the tariff items appearing in chapter 64 of the said Schedule, leather shoes, boots or half boots for adult shall comprise the following sizes, namely: -

(a)               French point or Paris point or Continental Size above 33;

(b)              English or UK adult size 1 and above;

(c)              American or USA adult size 1 and above.

(17)  In respect of the tariff items appearing in chapter 64 of the said Schedule, leather shoes, boots or half boots for children shall comprise the following sizes, namely: -

(a)              French point or Paris point or Continental Size upto 33;

(b)              English or UK children size upto 13;

(c)              American or USA children size upto 13.

3.                  All claims for duty drawback  shall be filed  with reference to the tariff items and descriptions  of goods shown in column 1 and 2 of the said  Schedule respectively.

4.                 This notification shall come into force  on the 18^th day of July, 2007.  However,  notwithstanding  anything contained in the Notification No. 81/2006-Customs (N.T.), dated 13^th July, 2006( GSR 420 (E) dated the 13^th July, 2006), the following chapter/tariff items and the entries relating thereto in  the said Schedule shall be applicable retrospectively with effect from the 1^st April 2007.