[TO BE PUBLISHED IN PART II SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA
(EXTRAORDINARY)]
TH
DATED THE 16 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
th
th
13 July, 2006 [GSR 420(E), dated the 13 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 fourdigit 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)
(52 of 1962);
manufactured partly or wholly in a warehouse under section 65 of the Customs Act, 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. 48/2000Customs, dated the 25th April, 2000, or against Duty Free Replenishment Certificate Licence issued
nd
in terms of notification No. 46/2002-Customs, dated the 22
April, 2002, or against Duty Free
Replenishment Certificate Licence issued in terms of notification No. 90/2004-Customs, dated
the
th
10
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;
2002;
(f)
manufactured or exported in terms of sub-rule (2) of rule 19 of the Central Excise Rules,
(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 19972002 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
st
2.4 of the said policy and that shall remain in force until the 31 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)
(b)
(c)
French point or Paris point or Continental Size above 33;
English or UK adult size 1 and above;
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)
(b)
(c)
French point or Paris point or Continental Size upto 33;
English or UK children size upto 13;
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.
th
4.
This notification shall come into force on the 18 day of July, 2007. However,
th
notwithstanding anything contained in the Notification No. 81/2006-Customs (N.T.), dated 13 July,
th
2006( GSR 420 (E) dated the 13 July, 2006), the following chapter/tariff items and the entries relating
st
thereto in the said Schedule shall be applicable retrospectively with effect from the 1 April 2007.
CHAPTER/TARIFF
ITEM
CHAPTER/TARIFF ITEM
CHAPTER/TARIFF ITEM
CHAPTER/TARIFF ITEM
15131900
28276010
33071010
3918909002
15153010
28276020
33074100
39199090
22071090
28281010
34011110
24022000
28281020
3401119001
3920 excluding tariff item
3920000099
3921909901
24039900
28301000
3401119002
3921909902
250410
28311010
34021190
3923 excluding tariff item
3923000099
25081090
28311020
34031900
3924 excluding tariff item
3924000099
271001
28319020
3404100001
3926 excluding tariff item
3926000099
271002
28332300
3404100002
4002700001
28030010
28332400
34049033
4002700002
28047020
28332500
35030010
4002700003
28091000
28332940
35030020
4002700004
28092010
28332990
3506919001
4002700005
28092020
28364000
3506919002
40094100
2811110001
28365000
35069991
40111010
2811110002
28366000
35069999
40111090
28111990
28371100
36050010
4011990001
28121020
28121030
28371910
28371990
36050090
38029019
4011990002
4011990003
28139090
28391100
38040090
40132000
28151110
28391900
3808 excluding tariff item
3808000099
40139090
28152000
28412010
3811900001
40141010
2817001001
28415090
3811900002
40149010
2817001002
28416100
38122090
4016 excluding tariff item
4016000099
28183000
28470000
38123090
410701
28230010
28480020
38151900
410702
28241010
2852 excluding tariff items
285210 and 285299
38249022
411201
28242000
29173600
38249024
411202
28249000
3204000043
38249025
411301
28261110
3204163004
38259000
411302
28261200
3204168003
3917239001
4114
2826199001
33030090
3917239002
42 excluding tariff items
420304 and 4206
2826199002
33049910
3917239003
430301
28273200
3304992001
39181010
44119900
28273201
3304992002
3918109001
4412999001
2827399001
3306102001
3918109002
4412999002
2827599003
3306102002
3918909001
4412999003
48026120
54
721904
871601
48026130
55
73 excluding tariff items
7301 to 7306 and 732606
871602
48026210
56
7418
90 excluding tariff items
900101 and 900102
48030010
57 excluding tariff item
570299
7419 excluding tariff items
741905 and 741906
48030020
58
7615
91 excluding tariff items
9101, 911101, 911201
and 911301
92
48030090
59
7616
94
48041100
60
82 excluding tariff item 8209
95 excluding tariff items
950403 and 95069962
4817100001
61
83 excluding tariff item 8311
4817100002
62
8413 excluding tariff items
841307 to 841310
96 excluding tariff items
9601 to 9606, 96083920
to 96083999, 96086090,
96089110, 96089199 to
96089999, 9609 to 9614,
961503 and 9618
29089090
4817100003
63 excluding tariff items
630503, 6309 and 6310
64 excluding tariff items
6401, 640202, 640311,
640402, 6405, 640613 and
640699
6506 excluding 650699
6804229001
6804229002
842301
48180001
48191001
48191002
4820 excluding
4820200099
48211010
4823 excluding tariff
item 4823000099
4901990001
4901990002
843201
843202
843203
843204
68113010
6908909001
848101
6908909002
70023900
848301
848302
29214516
49029020
4905 excluding tariff
item 4905900099
50 excluding tariff
items 5001 to 5003
51 excluding tariff
items 5101 to 5104
and 510502
52 excluding tariff
items 5201 to 5203
530601
530602
5307
530901
530902
70031290
70051090
848303
848304
70091090
848305
70133100
8484
70139990
8708 excluding tariff item
8708048
871101
871102
871201
8714
8715
70179010
70181020
70200090
70200091
7117 excluding tariff item
7117000099
(P. K. MOHANTY)
JOINT SECRETARY TO THE GOVERNMENT OF INDIA
F. No. 609/10/2007-DBK