TaxTMI 
TaxTMI 
All Industry Rates of Duty Drawback, 2004-2005 – Reg
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....on the basis of certain broad parameters including, inter alia, the prevailing prices of inputs, standard input/ output norms (SION) published by DGFT, share of imports in the total consumption of inputs and the applied rates of duty. As education cess is being collected as duties of excise/customs, the element of education cess has been factored in the drawback rates. The production, import and price data used for calculation of drawback rates have been obtained from the various sources, such as, the field formations of Central Excise/Customs, the Export Promotion Councils and trade bodies, Government publications and other reputed journals. The wastage norms given in the SION vary from product to product in the same Prod....
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.... acrylic yarn, viscose yarn, various blended yarn/fabrics, fishing nets etc. Further, the existing entries in the Drawback Schedule relating to garments have been expanded so as to create separate entries for garments made up of (i) cotton; (ii) cotton and MMF (Man Made Fibre) blend; and MMF. Separate rates have been prescribed for these categories of garments on the basis of composition of textiles. 6. There are several products in the Drawback Schedule, where the main inputs are exempt from customs duty. It has been decided to withdraw the All Industry Rate for these products. The exporters of such products can, of course, avail of the brand rate of duty drawback. As such, 46 entries have been d....
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....s/shirts/tops of man-made fibre is Rs.53.50/kg as against the existing rate of 10.6% subject to a maximum of Rs.40/piece. For knitted blouses/shirts/tops of cotton and man made fibre blend the new drawback rate is Rs.48/kg. The drawback rates on woven garments have been revised accordingly. As for ready made garments made up of silk, the rate has been increased from Rs.86/kg to Rs.130/kg. The drawback rate on dyed woollen shawls has also been revised upwards from Rs.6.10/kg to Rs.20.50/kg. d) Carpets and Floor Coverings : The new drawback rate for woollen carpets (57.01) is Rs.35.50/kg as against the existing rate of 7.8% of FOB value subject to a maximum of Rs.300/sq. metre. For silk carpets (57....
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.... seven items which included leather apparel (42.09), leather wallets/purses etc (42.07), finished leather (41.02), the drawback rates remain unchanged. The description of the entries "industrial leather gloves with or without cotton" (42.11, 42.11.1 & 42.12) has been changed to "industrial leather gloves with or without cotton/synthetic fabrics" so that gloves made in combination with synthetic fabrics become eligible for drawback. iii) Base Metals and Articles of Base Metals (Chapters 72-83) In Chapter 73 (Articles of Iron and Steel), all the existing entries in the Drawback Schedule have been retained. However, the scope of entries which were hitherto having only customs portion of drawback has been widened by providing d....
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....eous Edible Products (Chapters 1-21) In respect of products falling within Chapters 3-21 of the Drawback Schedule, drawback has been allowed only in respect of packaging material i.e. Aseptic Bags, M S Drums, OTS (Open Top Sanitary) Cans, and Glass Bottles. The drawback rate on these packing materials for food products has been determined on the basis of the current prices of input materials and incidence of duty. v) Chemicals, Dyes and Essential Oils (Chapters 28-33) In respect of items falling within Chapter 28, the drawback rates have been calculated by taking into consideration the SION norms, the prices of raw material and the applied rate of customs duty on the raw material. Applying these parameters, the dra....
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....educed from 11.6 % (customs) to 8.85% (customs). In Chapter 85, there are several entries/products where the major inputs are allowed to be imported duty free. All these entries have been deleted from the Schedule. The entries deleted are 85.03 (cast alloy permanent magnets), 85.24 (transformers), 85.36 (floppy diskettes), 85.43 to 85.48 (picture tubes) 85.50 to 85.52 (fly back transformer and deflection coil), 85.53 (TV tuner), 85.56 to 85.59 (capacitors) 85.60 to 85.62 (resistors), 85.63 to 85.67 (PCBs), 85.71 (switches), 85.81 to 85.91 (monitor tubes), 85.92 to 85.95 (semiconductor devices), 85.96 (magnet assemblies) and 85.97 (ferrite components). vii) Motor Vehicles, Bicycles & Parts Thereof (Chapter 87) In Ch....