Duty
drawback on handicrafts/articles of composite materials
–SS No.73.27 and SS No.74.19/191
of the Drawback Table – regarding.
Representations
have been received from the trade that the field formations are not permitting
drawback to the exports of Handicrafts / Artwares of composite materials and
also on the articles of composite materials, involving brass as a constituent
material.
2.
The matter has been examined in the Board. It is clarified that the
drawback rate for any export product is basically intended to rebate the duties
of Customs & Central Excise suffered on the inputs used in their
manufacture. In respect of
handicrafts/ articles of iron, the drawback rate reflects only the duty
incidence on the main input, i.e., iron. Therefore, if an article/ handicraft
is entered for export, and its constituent materials like glass, iron etc.
are visibly identifiable and their declared weight can be easily verified
individually, the drawback on iron
content can be allowed under SS No. 73.27 and on glass content under SS No.
70.02 of the Drawback Table.
3.
Similarly, for the articles of composite materials having brass as an
input, the drawback rate under SS No.74.19 / 74.191 can be extended to the brass
content if such content is visibly distinguishable and its weight unambiguously
verifiable. In fact, General Note 16 to the Drawback Table clearly envisages
such dispensation.
4.
All pending claims of the parties may be decided accordingly.
5.
Suitable Public Notice for information of the trade and standing orders
for guidance of the staff may kindly be issued on the above lines.
6.
Receipt of the Circular may please be acknowledged.