[TO
BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SUB-SECTION (i)]
GOVERNMENT
OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification
No. 89/2017-CUSTOMS (N.T.)
New Delhi, the
21st September, 2017
G.S.R. (E). – In exercise of the powers conferred by
sub-section (2) of section 75 of the Customs Act, 1962 (52 of 1962) and
sub-section (2) of section 37 of the Central Excise Act, 1944 (1 of 1944), read
with rules 3 and 4 of the Customs and Central Excise Duties Drawback Rules,
2017 (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. 131/2016-Customs (N.T.), dated the 31st October, 2016,
published vide number G.S.R. 1018(E), dated the 31st October, 2016, except as
respect to 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 following notes and conditions, namely :-
Notes
and 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 digits in the said Schedule are in several
cases not aligned with the descriptions of goods given in the First Schedule to
the Customs Tariff Act, 1975.
(2) The general rules for the interpretation
of the First Schedule to the Customs Tariff Act, 1975 shall, mutatis mutandis,
apply for classifying the export goods listed in the said Schedule.
(3) Notwithstanding anything contained in the
said Schedule, -
(i) All art-ware or handicraft items shall
be classified under the heading of artware or handicraft (of constituent
material) as mentioned in the relevant Chapters;
(ii) any identifiable ready to use machined
part or component predominantly made of iron, steel or aluminium, made through
casting or forging process, and not specifically mentioned at six digit level
or more in Chapter 84 or 85 or 87, except those classifiable under heading 8432
or 8433 or 8436, may be classified under the relevant tariff item (depending
upon material composition and making process) under heading 8487 or 8548 or
8708, as the case may be, irrespective of classification of such part or
component at four digit level in Chapter 84 or 85 or 87 of the said Schedule; ii
(iii) The sports gloves mentioned below heading
4203 or 6116 or 6216 shall be classified in that heading and all other sports
gloves shall be classified under heading 9506.
(4) The figures shown in column (4) in the
said Schedule refer to the rate of drawback expressed as a percentage of the
free on board value or the rate per unit quantity of the export goods, as the
case may be.
(5) The figures shown in column (5) in the
said Schedule refer to the maximum amount of drawback that can be availed of
per unit specified in column (3).
(6) An export product accompanied with a tax
invoice and forming part of project export (including turnkey export or
supplies) for which no figure is shown in column (5) in the said Schedule,
shall be so declared by the exporter and the maximum amount of drawback that
can be availed under the said Schedule shall not exceed the amount calculated
by applying ad-valorem rate of drawback shown in column (4) to one and half
times the tax invoice value.
(7) 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.
(8) Drawback at the rates specified in the
said Schedule shall be applicable only if the procedural requirements for
claiming drawback as specified in rule 12, 13 and 14 of the said rules, unless
otherwise relaxed by the competent authority, are satisfied.
(9) 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 Authorisation or Duty Free Import
Authorisation issued under the Duty Exemption Scheme of the relevant Foreign
Trade Policy:
Provided
that where exports are made against Special Advance Authorisation issued under
paragraph 4.04A of the Foreign Trade Policy 2015-20 in discharge of export
obligations in terms of Notification No. 45/2016-Customs, dated 13th August,
2016, the rates of drawback specified in the said Schedule shall apply as if in
the said Schedule, the entries in columns (4) and (5) against the Tariff items
in the said Schedule below all Chapters, except Chapter 61 and 62, are NIL, and
those in Chapters 61 and 62 are as specified in the Table annexed hereto;
(c) Manufactured or exported by a unit
licensed as hundred per cent Export Oriented Unit in terms of the provisions of
the relevant 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; iii
(e) Manufactured or exported availing the
benefit of the notification No. 32/1997-Customs, dated 1st April, 1997.
(10) Whenever a composite article is exported
for which any specific rate has not been provided in the said 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 and
in case of doubt or where there is any information contrary to the
declarations, the proper officer of customs shall cause a verification of such
declarations.
(11) The term ‘article of leather’ in Chapter 42
of the said Schedule shall mean any article wherein (a) 60% or more of the
outer visible surface area; or (b) 60% or more of the outer and inner surface
area taken together, 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.
(12) 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.
(13) The term “dyed” in relation to fabrics and
yarn of cotton, shall include “bleached or mercerised or printed or melange”.
(14) The term “dyed” in relation to textile
materials in Chapters 54 and 55 shall include “printed or bleached or melange”.
(15) In respect of the tariff items in Chapters
60, 61, 62 and 63 of the said Schedule, the blend containing cotton and man-made
fibre shall mean that content of man-made fibre in it shall be more than 15%
but less than 85% by weight and the blend containing wool and man-made fibre
shall mean that content of manmade fibre in it shall be more than 15% but less
than 85% by weight. The garment or made-up of cotton or wool or man-made fibre
or silk shall mean that the content in it of the respective fibre is 85% or
more by weight.
(16) The term “shirts” in relation to Chapters
61 and 62 of the said Schedule shall include “shirts with hood”.
(17) 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; and
(c) American or USA adult size 1 and above.
(18) 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; and
(c) American or USA children size upto 13.
(19) The drawback rates specified in the said
Schedule against tariff items 711301, 711302 and 711401 shall apply only to
goods exported by airfreight, post parcel or authorised courier through the
Custom Houses as specified in para 4.72 of the Hand Book of Procedures,
2015-2020 published vide Public Notice No. 1/2015-2020, dated the 1st April,
2015 of the Government of India in the Ministry of Commerce and Industry, after
examination by the Customs Appraiser or Superintendent to ascertain the quality
of gold or silver and the quantity of net content of gold or silver in the gold
jewellery or silver jewellery or silver articles. The free on board value of
any consignment through authorised courier shall not exceed rupees twenty
lakhs.
(20) The drawback rates specified in the said
Schedule against tariff items 711301, 711302 and 711401 shall not be applicable
to goods manufactured or exported in discharge of export obligation against any
Scheme of the relevant Foreign Trade Policy of the Government of India which
provides for duty free import or replenishment or procurement from local
sources of gold or silver.
(21) “Vehicles” of Chapter 87 of the said
Schedule shall comprise completely built unit or completely knocked down (CKD)
unit or semi knocked down (SKD) unit.
2. All claims for duty drawback at the
rates of drawback notified herein shall be filed with reference to the tariff
items and descriptions of goods shown in columns (1) and (2) of the said
Schedule respectively. Where, in respect of the export product, the rate of
drawback specified in the said Schedule is Nil or is not applicable, the rate
of drawback may be fixed, on an application by an individual manufacturer or
exporter in accordance with the said rules. Where the claim for duty drawback
is filled with reference to tariff item of the said Schedule and it is for the
rate of drawback specified herein, an application, as referred under sub-rule
(1) of rule 7 of the said rules shall not be admissible.
3. The amount referred in sub-rule (3) of
rule 7 of the said rules, relating to provisional drawback amount as may be
specified by the Central Government, shall be equivalent to the drawback rate
and drawback cap shown in column (4) and (5) in the said Schedule for the
tariff item corresponding to the export goods, if applicable, and determined as
if it were a claim for duty drawback filed with reference to such rate and cap.
4. This notification shall come into force on the 1 st day of October, 2017.
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