Duty Drawback Rates Revised
Revenue Secretary P.V. Bhide, announced at a press conference yesterday that the All Industry Rates of Duty Drawback for 2007-08 has been worked out and the rates will be announced shortly. The increased rates of drawback would take effect from 1.4.2007. We in TIOL had been eagerly waiting for this to update our CD.
The drawback rates have been determined on the basis of certain broad parameters including
1. the prevailing prices of inputs
2. standard input/output norms (SION) published by DGFT
3. share of imports in the total consumption of inputs and the applied rates of duty
4. the element of education cess
5. The incidence of duty on HSD/Furnace Oil
6. the incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods
The rates - revised upward in most cases:-
Commodity | Existing | Revised | ||
|---|---|---|---|---|
Rate | Cap | Rate | Cap | |
Silk higher quality | 10.8% | Rs.325/kg | 8.3% | Rs.250/kg |
Cotton yarn for grey cotton yarn of less than 60 counts | 4% | Rs.8/kg | 5.4% | Rs.11/kg |
dyed cotton yarn of less than 60 counts | 6.5% | Rs.18/kg | ||
cotton yarn of 60 counts and more | 8.8%/ 9.9% | Rs.26 per kg / Rs.33 per kg | ||
cotton fabrics | 4.7% (grey) / 5.7% (dyed) | Rs.14 per kg (grey) / Rs.20.5 per kg (dyed). | 6.4% (grey) / 7.7% (dyed) | Rs.19 per kg (grey) / Rs.28 per kg (dyed) |
hand knotted woolen carpets | 9.4% | Rs.565 per sqm | 12.5% | Rs.700 per sqm |
silk carpets | 11.8% | Rs.1600 per sqm | 15.5% | Rs.2750 per sqm |
cotton durries | 9.4% | Rs.20/kg | 11.5% | Rs.26/kg |
knitted blouses/shirts/tops of cotton | 7% | Rs.31 | 10% | Rs.48 per piece |
knitted blouses/shirts/tops of man-made fibre | 8.1% | Rs.34 per piece | 11.5% | Rs.48 per piece |
knitted blouses/shirts/tops of cotton and man made fibre blend | 7.5% | Rs.32 per piece | 10.7% | Rs.48 per piece |
bed linen, table linen, toilet linen, kitchen linen and curtains of cotton | 6.4% | Rs.64 per kg | 9.1% | Rs.110 per kg |
finished leather | 6.6% | Rs.7 per sq.ft | 7.5% | Rs.8 per sq.ft |
leather footwear for adults | 9.5% | Rs.85 per pair | 11.5% | Rs.105 per pair |
leather apparels | 9.5% | Rs.533 per piece | 11.4% | Rs.650 per piece |
stainless steel utensils | 15% | 17% | ||
brass builder hardware and handicrafts of brass | 15% | Rs.75/kg | 18% | Rs.110/kg |
artware/handicrafts of copper | 15% | Rs.110/kg | 18% | Rs.155/kg. |
bicycles and bicycle parts | 13% | |||
ball point pens | 7% | Rs.75 per 100 pcs | 8.5% | Rs.225 for 100 pcs |
felt tipped pens | 12% | Rs.200 per 100 pcs | 13.3% | Rs.275 per 100 pcs. |
The Customs Department has already implemented EDI at 34 major customs locations covering about 85% of the imports and exports. Under the system, the shipping bill itself is treated as the claim for drawback. The drawback claim is processed on line and the amount is credited into the exporter's account in the bank designated by the Customs immediately after "let export order" and filing of manifest by the carrier without any additional paper work. Commissioners have also been instructed to ensure that all grievances or problems raised by exporters on drawback claims are addressed within 72 hours and, if this is not possible in any case, to bring the matter to the notice of Member (Customs/Export Promotion) in CBEC. Exporters may also bring any delay beyond 72 hours to the notice of Member (Customs/Export Promotion).