Packing material drawback under Customs law is not separately available where it is already covered in the export drawback rate.

Separate drawback under Section 74 of the Customs Act, 1962 was not available for poly bags, paper inserts and adhesive stickers used as packing material for exported cotton made ups. The drawback scheme treated packing material as included in the admissible drawback rate for the exported goods, and the items did not independently retain the identity required for separate relief. Because the exported cotton made ups already carried drawback at the prescribed rate, the claim for additional drawback on the packing-related items was rejected.

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Issues: Whether the applicant was entitled to drawback under Section 74 of the Customs Act, 1962 on poly bags, paper inserts and adhesive stickers used as packing material for exported cotton made ups.

Analysis: The claim turned on whether the imported articles retained their identity as the goods exported and whether they could independently qualify for drawback. The exported product was 100% cotton made ups, on which drawback was already admissible at the prescribed rate. The drawback scheme, as clarified in Note 3 to the general notes issued under Public Notice No. Drawback/PN-7/88 dated 31-5-1986, treated packing material as included in the drawback rate for such export goods. The poly bags were used only as packing material, and the paper inserts and adhesive stickers were treated as part of the packing or manufacturing process. Separate drawback on those items was therefore not available.

Conclusion: The claim for separate drawback under Section 74 of the Customs Act, 1962 was not admissible and was rejected.

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