Drawback on used goods re exported – Government amends a 40 year old notification
Imported goods can be exported and drawback is allowed. Imported goods can be exported under the drawback scheme even if they had been used in India, but here the drawback is subject to restrictions based on the period for which the goods have been used in India. Notification No. 19/65 – cus prescribes the period and the percentage of drawback available. This notification was last amended in 1970 and now after 36 years, it is again amended to change the periods and percentages to the benefit of the trade. It is great that the Board was able to trace a 40 year old notification and amend it. The new rates are as per the table below with the old rates given in the last column.
Sl. No. | Length of period between the date of clearance for home consumption and the date when the goods are placed under Customs control for export. | Percentage of import duty to be paid as Drawback | Old rates |
(1) | (2) | (3) | |
1. | Not more than three months | 95% | 85% for not more than 6 months |
2. | More than three months but not more than six months | 85% | |
3. | More than six months but not more than nine months | 75% | 70% for six months to 12 months |
4. | More than nine months but not more than twelve months | 70% | |
5. | More than twelve months but not more than fifteen months | 65% | 60% for 12 months to 18 months |
6. | More than fifteen months but not more than eighteen months | 60% | |
7. | More than eighteen months but not more than twenty-one months | 55% | 50% for 18 months to 24 months |
8. | More than twenty-one months but not more than twenty-four months | 50% | |
9. | More than twenty-four months but not more than twenty-seven months | 45% | 40% for 24 to 30 months |
10. | More than twenty-seven months but not more than thirty months | 40% | |
11. | More than thirty months but not more than thirty-three months | 35% | 30% for 30 to 36 months |
12. | More than thirty-three months but not more than thirty-six months | 30% | |
13. | More than thirty-six months | NIL | nil |
Notification No. , dated 14-3-2006