TaxTMI 
TaxTMI 
All Industry Rates of Duty Drawback, 2005-06 – Reg
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....also been factored in the drawback calculation. 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 changes in drawback rates reflect the changes in applied duties and changes in prices. 3. A significant feature of the new Drawback Schedule is that barring a few exceptions the rates on all export products have been expressed in ad valorem terms in lieu of earlier specific rates, i.e. Metric Tonne /kg etc. Though the weight based drawback is reported to be less vulnerable to abuse, the ad valorem rates have the dual virtue of first being fair to the exporters and secondly, serve the policy objective of encouraging the export of value added items. Therefore, as a conscious policy decision, it has been decided to express drawback rates in ad valorem terms. The associated drawback caps have, however, been fixed in specific items, i.e. weight or piece, as the case may be. 4. The existing Drawback Schedule is based on a mixed c....
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....t when CENVAT facility has not been availed (which is inclusive of Customs and Central Excise allocation) and a lower amount when CENVAT facility has been availed, representing the Customs portion of drawback. As a measure of simplification and to avoid repetition of entries, in the new Schedule the format of the Table has been changed to show the drawback rates separately, i.e. when CENVAT facility has not been availed and when CENVAT facility has been availed. The latter entry denotes the Customs portion of drawback only whereas, the former entry denotes the Central Excise and Customs portion put together. The difference between the two is Central Excise portion of drawback. 7. The drawback rates have undergone significant changes in sympathy with the changes in prices of inputs, duties etc. The Drawback Schedule may be perused for details. The more important changes are outlined below: - i) Textiles and Textile Articles (Chapters 50-63) a) Silk: In the case of silk, the drawback rate for higher quality silk fabrics has been revised from Rs. 126/kg to 7.5% with a drawback cap of Rs. 140/kg. The rate for fabrics of noil silk h....
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....f Rs. 21 per piece as against the existing rate of Rs.48/kg. The drawback rates on woven garments have been revised accordingly. As for ready made garments made up of silk, the rate provided is 6% with a cap of Rs. 36/45 per piece as against the existing rate of Rs.130/kg. The drawback rate on dyed woollen shawls has been revised upwards from Rs.20.50/kg to 6% with a cap of Rs. 30 per piece. f) Made Ups: In the made up category, the new drawback rate on bed linen, table linen, toilet linen, kitchen linen and curtains of cotton is 5% with a cap of Rs. 50 per kg as against the existing rate of Rs. 4 per kg (grey) and Rs. 8 per kg (dyed). The drawback rates on made-ups of man-made fibres/silk/wool have also been revised. ii) Leather and Leather Articles (Chapters 41-42 & 64) 8. The new drawback rate for finished leather is 6.3% with a cap of Rs. 5 per sq.ft. as against the existing rate of 5.1% with a cap of Rs. 3.40 per sq. ft. Likewise, the new drawback rate for leather footwear for adults is 8.3% with a cap of Rs. 70 per pair and the rate for leather footwear for children is 9% with a cap of Rs. 40 per pair. Under the exis....
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.... and bicycle rickshaw reflect the duty on components. The drawback is mainly on account of duty on domestic steel. Nickel and zinc are also used in the manufacture of certain parts. The rate of drawback has been calculated as per standard input-output norms, where available and domestic steel prices. The rates have undergone changes on bicycle parts. On some parts the rates have registered an increase and on others the same has decreased. The Schedule may be perused for details. Writing Instruments (Chapter 96) 12. The existing drawback rate on fountain pen, ball point pens, etc. is 9.5% with a cap of 4.90 per piece. The rate has now been reduced to the level of 6% with lower drawback caps. Chemicals, Dyes, Essential Oils, Plastics and Rubber (Chapters 28-40) 13. The drawback rate on zinc oxide IP/BP/USP grade has been revised downwards from 14,063/MT [Rs.6400/MT (customs) + Rs.7663/MT (central excise)] to 9.6% with a cap of Rs. 9,600/MT. Taking into account the incidence of duty and prices of inputs the drawback rates on dyes and optical bleaching agents have been revised upwards. The new drawback rate on perfumed agarbattis is 8.8% as again....