Duty drawback

[Raja krishnan]

Dear Sir,

My client is a Textile Manufacturer of Cotton Fabrics and Garments commodities. Now they will enter in the Export Business through duty drawback procedure. Now my decision is, surely they will obtain the Central Excise registration as well as execute the LUT(Letter of undertaking) and the same filed by them for the purpose of removal of excisable goods for export with out payment duty under Rule 19 of CER 2002 as well as availing Duty drawback also. Since the Cotton fabrics is exemption commodity but their major export product is Garments. So in this situation is my opinion is correct one.? in case my decision is wrong please reply some other alternate procedure for this export transaction.
 

AI Summary

Textile Manufacturer Seeks Guidance on Exporting Garments Using Duty Drawback and LUT Under Rule 19 of CER 2002 A textile manufacturer plans to enter the export business using the duty drawback procedure. They intend to obtain Central Excise registration and execute a Letter of Undertaking (LUT) to export excisable goods without paying duty under Rule 19 of CER 2002 while availing of duty drawback. Although cotton fabrics are exempt, their main export product is garments. The query seeks confirmation on whether this approach is correct and requests alternative procedures if it is not. A respondent asked if the issue was clarified, indicating no further detailed guidance was provided in the reply.