Drawback on Ready – made Garments – Deduction for f.o.b. value on account of Imported/indigenous hangers – regarding

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....nts - Deduction for f.o.b. value on account of Imported/ indigenous hangers - regarding.  A representation has been received from the Apparel Export Promotion Council that certain Customs formations are following a practice of deducting the value of hangers from the f.o.b. value of the hanger packed garments for the purpose of allowing drawback even though the Customs Notification No. 16/2....

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....eady - made garments. 3. It is also clarified here while formulating the All Industry Rates of Drawback for the ready-made garments, the duty incidence on a account of hangers has not been included. The hangers supplied along with the garments are either sourced locally or they are imported. The local procurement in any case is against a price while the imported hangers could have been supplied....

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....garments if the value of hangers is not declared separately and deducted by the exporters and c. where the hangers are imported on payment of duty, drawback under section 74 can be availed separately by the exporters in terms of Board's Circular No.42/96-Cus dated 12.8.96. If their value is not separately indicated in the shipping bills, suitable amendment to the declared f.o.b. value to arrive....