| |
India:Duty drawback rates revised for all industries |
|
2005-1-20
|
|
 |
Ministry of Finance has revised All Industry Rates of Duty Drawback, which would come into force from January 19, 2005. A notification No. 8/2005-Cus (NT) to this effect was issued, here today.
The drawback rates have been determined on the basis of certain broad parameters including, inter alia, the prevailing prices of inputs, standard input/ output norms (SION) published by DGFT, share of imports in the total consumption of inputs and the applied rates of duty. As education cess is being collected as duties of excise/customs, the element of education cess has been factored in the drawback rates. The changes in drawback rates reflect the changes in applied duties and changes in prices.
A significant feature of the new Drawback Schedule is that the rates for most products have been expressed in terms of Metric Ton/kg in lieu of earlier ad valorem rates. Further, following the SION, the rates previously expressed in terms of numbers, pieces and gross have now been changed to Metric Ton/kg. This will meet the requirements of transparency and more importantly, will help prevent disputes and litigations arising from alleged over-invoicing of exports.
The existing Drawback Schedule does not provide for drawback of excise duty in respect of several entries. To make the Schedule attractive and useful for exporters, the drawback rate for excise portion has been added at several places. The drawback can be availed of only when cenvat credit has not been taken.
Taking into account the suggestions of trade and industry, several new entries have been created in the Drawback Schedule. A new Chapter (Chapter 72) has been introduced covering pig iron, iron ore pellets, ferro-alloys and steel products. In all, 29 new entries have been created. In the Textiles Sector (Chapters 50-63), the product coverage has been expanded by creating about 165 new entries. The new products included are wool tops, cotton yarn, acrylic yarn, viscose yarn, various blended yarn/fabrics, fishing nets etc.
Further, the existing entries in the Drawback Schedule relating to garments have been expanded so as to create separate entries for garments made up of (i) cotton; (ii) cotton and MMF (Man Made Fibre) blend; and MMF. Separate rates have been prescribed for these categories of garments on the basis of composition of textiles.
The drawback rates have undergone significant changes in sympathy with the changes in prices of inputs, duties etc. In the case of silk, the drawback rate for higher quality silk fabrics has been increased from Rs.86/kg to Rs.126/kg. In the case of wool, the new drawback rate for woollen worsted yarn (dyed) – weaving quality is Rs.20.50/kg which is significantly higher than the existing rate of Rs.4.80/kg. The drawback rates on blended yarn and fabrics have been revised upwards accordingly.
In the case of ready made garment sector, the new drawback rate for knitted blouses/shirts/tops of cotton is Rs.42/kg as against the existing rate of 10.6% of FOB value subject to a maximum of Rs.40/piece. The new rate for knitted blouses/shirts/tops of man-made fibre is Rs.53.50/kg. For knitted blouses/shirts/tops of cotton and man made fibre blend the new drawback rate is Rs.48/kg. The drawback rates on woven garments have been revised accordingly. As for ready made garments made up of silk, the rate has been increased from Rs.86/kg to Rs.130/kg. The drawback rate on dyed woollen shawls has also been revised upwards from Rs.6.10/kg to Rs.20.50/kg.
The new drawback rate for woollen carpets (57.01) is Rs.35.50/kg as against the existing rate of 7.8% of FOB value subject to a maximum of Rs.300/sq. metre. For silk carpets (57.03), the new drawback rate is Rs.150/kg as against the existing rate of 8.2% of FOB value subject to a maximum of Rs.950/sq.metre. In view of abolition of excise duty on cotton textiles, the drawback rate on cotton durries (57.02) has been reduced from 9% of FOB value subject to a maximum of Rs.25/kg (central excise) to Rs.8/kg [Rs.3/kg (customs) + Rs.5/kg (central excise)].
In the leather sector, the drawback rates have been reduced by 20% on seven items which included leather footwear (64.01) and leather footwear uppers (64.10), industrial leather gloves (42.11), leather sandals (64.04) etc and 10% on two items, namely, leather bags (42.05) and other leather gloves (42.13). The new drawback rate for leather footwear (64.01) is 7.9% subject to a maximum of Rs.61/pair. On two items, viz. lining leather (41.01) and rubber canvas footwear (64.08) the drawback rates have been increased by 20% and on one item viz., leather sandal upper (64.13) the rate has been increased by 10%. On seven items which included leather apparel (42.09), leather wallets/purses etc (42.07), finished leather (41.02), the drawback rates remain unchanged.
The drawback rates on copper cathodes, wire bars and rods have been calculated taking into account the duty incidence on copper concentrates. As a result, the rates have registered a decline from Rs.18.10 / Rs.13.30/kg (customs) to Rs. 6.50/kg (customs). Taking into account the duty incidence and prices of inputs, the drawback rate on brass builder hardware and handicrafts of brass has been marginally reduced from Rs. 26.20/kg to Rs.24.10/kg. The same is the case with artware of brass and electroplated nickel silver where the drawback rate has been marginally reduced from Rs.26.20/kg to Rs. 24.75/kg. However, in the case of other articles of brass, other than brass artware and electroplated nickel silver and artware of copper, the rates have been revised upwards. |
|
| Press Information Bureau |
|
|
|
|
|
浙公網安33010602010414
