Notification No.36/2005, Dated 02 May 2005

2nd May, 2005

Notification No.36/2005-NT-Customs

          In pursuance of  rule 3 read with rule 4 of the Customs and Central Excise Duties 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. 8/2005-Customs (N.T.), dated the 18^th January, 2005,  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 in the General Notes hereunder, namely:-

GENERAL NOTES:   

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/eight digit/modified six/eight/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.

3        The figures shown in column 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 column 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 and central excise 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 refer to the central excise component of drawback. If the rate indicated is the same in both the columns, it would 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 issued under the Duty Exemption Scheme of  the relevant Export and Import Policy and 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 and 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 and 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  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 and Central Excise Duties 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, would 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.