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

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....orted/ 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. 16/2000 dated 1.3.2000 (vide Serial No. 115), exempts hangers....

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....ormulating 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 either free of charge or against payment. In view of such di....

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....ducted 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 at the net f.o.b. value of the ready-made garments exclusive of ha....