Circulars

DBK - CBIC circular regarding Revision of All Industry Rates (AIRs) of Duty Drawback
 

CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle, 4th Floor, 7 Cooperage Road, Mumbai - 400 001.India.

Tel : +91 22 22021288 / * Fax : +91 22 22026684

* E-mail : info@chemexcil.gov.in Web : https://chemexcil.gov.in

 

EPC/LIC/DBK_2018 

   13/12/2018

 

ALL  THE MEMBERS OF THE COUNCIL

 

DBK

CBIC circular regarding Revision of All Industry Rates (AIRs) of Duty Drawback

 

 

Dear Members,

 

This is in continuation of our circular dated 07/12/2018 informing you that  Department of Revenue  Ministry of Finance, Government of India  has issued Notification no. 95/2018-Cus (NT) Dated  06.12.2018  regarding Revised  All Industry Rates (AIRs) of DBK.   For the sake of convenience of members,  the  gist of  revised AIR DBK rates for items under CHEMEXCIL purview was provided in our circular.  The MOF notification  come into force on the 19th  day of December, 2018.    

 

Now,  Central Board of Indirect Taxes & Customs (CBIC)  has issued  Circular No. 52/2018-Customs dated 12/12/2018 informing about Notification No. 95/2018-Customs (N.T.) dated 6.12.2018   and   highlighting the salient features of the revised AIRs of DBK  which are reproduced as follows –

 

  • As being done since 1.10.2017, the revised AIRs of Duty Drawback neutralize incidence of duties of Customs on inputs used and remnant Central Excise duty on specified petroleum products used in manufacture of export goods. Accordingly each tariff item in the Schedule annexed with above mentioned Notification has been provided with one AIR specified under column (4) with caps under column (5) in the Schedule. For claiming these AIRs, the relevant tariff item have to be suffixed with suffix ‘B’ e.g. for export of goods covered under tariff item (TI) 640609, the drawback serial no. should be declared as 640609B;

 

  • The notification also specifies the alternative AIRs on garments exports made against the Special Advance Authorization (para 4.04A of Foreign Trade Policy 2015-20) in discharge of export obligations in terms of Notification No. 45/2016-Customs dated 13.08.2016. For claiming these alternative AIRs, the relevant tariff item has to be suffixed with suffix ‘D’ instead of the usual suffix ‘B’.
  •  
  • The AIR of Duty Drawback for items of marine products and seafood (Chapter 3, 15, 16, 23) including live fish (TI 0301), chemicals (Chapter 29), essential oils (Chapter 33) including synthetic perfumery compounds (TI 330201), bicycle/ cycle-rickshaw tyres and bicycles tubes (Chapter 40), finished and lining leather, leather articles and footwear (Chapter 41, 42 and 64), raw cotton, ginned cotton (Chapter 52), textiles (Chapter 50 to 60), silk yarn fabrics and readymade garments (Chapter 50 and 61-62), wool yarn fabrics and readymade garments (Chapter 51 and 61-62), carpets (Chapter 57), made-ups (Chapter 63), glass and glass ware (Chapter 70) Multi speed bicycle and Mountain Terrain Bike (TIs 871202 & 871203) and sports goods (Chapter 95) have been increased on account   of various factors such as change in duty structure, change in prices (CIF) of imported inputs and FOB of export goods, change in import intensity of inputs, etc.;

 

 

  • 24 new tariff items in various sectors viz. Chemicals (17 items), Textiles and made-up (3 items) and Electrical and electronics (4 items) have been introduced in the Schedule including for common rail injector (Chapter 84) and cellular mobile phones (Chapter 85);
  •  
  • Appropriate caps have been provided wherever felt necessary to prescribe upper limit of Duty drawback.

 

  • The Commissioners are expected to ensure due diligence to prevent any misuse. The shipping bills with parameters considered to be sensitive should be handled with adequate care at the time of export. There is also need for continued scrutiny for preventing any excess drawback arising from mismatch of declarations made in the Item Details and the Drawback Details in a shipping bill.

 

  • With trade facilitation in view, the Drawback Committee constituted by the Central Government has also been mandated to give a supplementary report on the basis of representations received after the revised rates are notified. Accordingly, exporters may immediately come forward with representations with supporting data and documents, if any, for higher rates than rates provided. The representation may be submitted latest by 31.12.2018.
  • Any inconsistency, error or difficulty faced should be intimated to the Board. The Commissioners may also inform, with appropriate data, the details of specific products where drawback cap needs to be imposed.

 

Members are requested to take note of  above points in revised DBK rates.   You can also  mail send your feed-back/ representations  on ed@chemexcil.gov.in  & deepak.gupta@chemexcil.gov.in. 

 

The above said circular is available for reference using below links-

 

 


52/2018

View (121 KB)
 

12-12-2018

F. No. 609/65/2018-DBK

Revised All Industry Rates of Duty Drawback

 

 

http://cbic.gov.in/htdocs-cbec/customs/cs-circulars/cs-circulars-2018/Circular-52-2018-Customs.pdf

 

Thanking You,


Yours faithfully,

 

(S.G. BHARADI)
Executive Director

CHEMEXCIL