ALL INDUSTRY RATES OF DUTY DRAWBACKS FOR THE YEAR 2003-04 NOTIFIED

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The Government has notified the new All Industry Rates of Duty Drawbacks for the year 2003-04. These will come into effect from April 7, 2003. The revised rates have following salient features:-

• Drawback Rate for Chassis of motor vehicles has been fixed on the basis of data furnished by the Engineering Export Promotion Council.
• Drawback rates in respect of 401 entries have been continued at the existing level as there is no change in the duties on the inputs used in the export products.
• In respect of 403 entries, drawback rates have been reduced consequent upon reduction in customs and central excise duties.
• Since the customs duty rates on various inputs used in leather industry have remained unchanged, the rates of leather and leather articles and leather footwear have been maintained at last year’s level. Few explanatory notes have been added to clarify the scope of certain entries.
• Duty drawback rates of handloom textiles/made-ups, made of cotton, have not been changed owning to the retention of central excise duty on cotton hank yarn imposed last year. However, new entries have been created for handloom made-ups made of man-made fibres/febrics with lower drawback rates.
• Due to reduction in customs and central excise duties on various inputs the drawback rates have been reduced for Knitted garments/Knitwears and Woven Garments.
• On account of reduction in the duties of Customs and Central Excise, drawback rates of woollen/silk/synthetic carpets have been reduced.
• The drawback rates of copper/brass artwares/handicrafts/hardware have not been altered due to the continuation of earlier customs duty rates in respect of main raw materials.
• Consequent upon the recommendations of the Kelkar Committee, relaxation has been provided in the exports of composite articles. The General Note 11 to the new Drawback Table shall enable the exporters to avail drawback on the strength of a declaration only.
• In the wake of amendment in the Customs Act, supplies made to the special economic zone are now treated at par with the physical exports. Consequently, rule 2(c) of the Customs and Central Excise Duties Drawback Rules 1995, have been amended. Accordingly, the exports to special economic zone shall be eligible for drawback at the rates specified in the Duty Drawback Table.

Annual review of rates of duty drawback is done in the wake of announcement of revised duties of customs and central excise in the Union Budget.