2nd May, 2005
Notification No.36/2005-NT-Customs
In pursuance of rule 3 read with rule 4 of the Customs and Central Excise Duties Drawback Rules, 1995 (hereinafter referred
to as the said rules) and in supersession of the notification of the Government of India in the Ministry of Finance
(Department of Revenue), No. 8/2005-Customs (N.T.), dated the 18
th
January, 2005, except as respects things done or
omitted to be done before such supersession, the Central Government hereby determines the rates of drawback as
specified in the Schedule annexed hereto (hereinafter referred to as the said Schedule) subject to the conditions specified
in the General Notes hereunder, namely:-
GENERAL NOTES:
1. The tariff items and descriptions of goods in the said Schedule are aligned with the tariff items and descriptions of
goods in the First Schedule to the Customs Tariff Act, 1975(51 of 1975) at the four-digit level only. The descriptions of goods
given at the six digit/eight digit/modified six/eight/ten digits are in several cases not aligned with the descriptions of goods
given in the said First Schedule to the Customs Tariff Act, 1975
2. The General Rules for the Interpretation of the First Schedule to the said Customs Tariff Act, 1975 shall mutatis mutandis
apply for classifying the export goods listed in the said Schedule.
3 The figures shown in column 4 and 6 appearing below the "Drawback Rate" in the Schedule refer to the rate of drawback
expressed as a percentage of the free on board ( f.o.b.) value or the rate per unit quantity of the export goods, as the case may
be.
4. The figures shown in column 5 and 7 appearing below the "Drawback Cap" refer to the maximum amount of drawback
that can be availed of per unit specified in column 3.
5. The figures shown under drawback rate and drawback cap appearing below the column "drawback when cenvat facility
has not been availed" refer to the total drawback (customs and central excise component put together) allowable and those
appearing under the column "drawback when cenvat facility has been availed" refer to the drawback allowable under the
customs component. The difference between the two columns refer to the central excise component of drawback. If the rate
indicated is the same in both the columns, it would mean that the same pertains to only customs component and is available
irrespective of whether the exporter has availed of cenvat or not.
6. Drawback at the rates specified in the said Schedule shall be applicable only if the procedural requirements for claiming
drawback as specified in rules 11, 12 and 13 of the said rules, unless otherwise relaxed by the competent authority, are
satisfied.
7. The rates of drawback specified in the said Schedule shall not be applicable to export of a commodity or product if such
commodity or product is-
(a) manufactured partly or wholly in a warehouse under section 65 of the Customs Act, 1962 (52 of 1962),
(b) manufactured or exported in discharge of export obligation against an Advance Licence issued under the Duty
Exemption Scheme of the relevant Export and Import Policy and the Foreign Trade Policy:
Provided that where exports are made against Advance Licences issued on or after the 1st April, 1997, in discharge of export
obligations in terms of notification No. 31/97 - Customs, dated the 1st April, 1997, or against Duty Free Replenishment
Certificate Licence issued in terms of notification No. 48/2000-Customs, dated the 25th April, 2000, or against Duty Free
Replenishment Certificate Licence issued in terms of notification No. 46/2002-Customs, dated the 22
nd
April, 2002, or
against Duty Free Replenishment Certificate Licence issued in terms of
notification No. 90/2004-Customs, dated the 10
th
September, 2004, drawback at the rate equivalent to Central Excise
allocation of rate of drawback specified in the said Schedule shall be admissible subject to the conditions specified therein;
(c) manufactured or exported by a unit licensed as hundred per cent. Export Oriented Unit in terms of the provisions of the
relevant Export and Import Policy and the Foreign Trade Policy;
(d) manufactured or exported by any of the units situated in free trade zones or export processing zones or special
economic zones;
(e) manufactured or exported by availing the rebate of duty paid on materials used in the manufacture or processing
of such commodity or product in terms of rule 18 of the Central Excise Rules, 2002;
(f) manufactured or exported in terms of sub-rule (2) of rule 19 of the Central Excise Rules, 2002;
(g) manufactured or exported availing of the facility under the Duty Entitlement Pass Book Scheme as contained in
paragraph 7.14, read with paragraph 7.17 of the Export and Import Policy 1997-2002 and manufactured or exported availing
of the facility under the Duty Entitlement Pass Book Scheme as contained in paragraph 4.3 of the Export and Import Policy
2002-2007, notified under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992), read
with paragraph 4.37 of the Hand Book of Procedures (Volume 1) issued in pursuance of the provisions of paragraph 2.4
of the said policy and manufactured or exported availing of the facility under the Duty Entitlement Pass Book Scheme as
contained in paragraph 4.3, of the Foreign Trade Policy 2004-2009, notified under section 5 of the Foreign Trade
(Development and Regulation) Act, 1992 (22 of 1992), read with paragraph 4.37 of the Hand Book of Procedures
(Volume 1) issued in pursuance of the provisions of paragraph 2.4 of the said policy and that shall remain in force until 31
st
March, 2009.
8. Where the export product is not specifically covered by the description of goods in the said Schedule, the rate of drawback
may be fixed, on an application by an individual manufacturer or exporter in accordance with the Customs and Central Excise
Duties Drawback Rules, 1995.
9. The rates of drawback specified against the various tariff items in the said Schedule in specific terms or on ad valorem
basis, unless otherwise specifically provided, are inclusive of drawback for packing materials used, if any .
10. The term "dyed", wherever used in the said Schedule in relation to textile materials, would include yarn or piece
dyed or predominantly printed or coloured in the body.
11. Wherever specific rates have been provided against tariff item in the Schedule, the drawback shall be payable only if
the amount is one per cent or more of free on board value, except where the amount of drawback per shipment
exceeds five hundred rupees.
12. The expression "when cenvat facility has not been availed", used in the said Schedule, shall mean that the exporter shall
satisfy the following conditions, namely :-
(i) The exporter shall declare, and if necessary, establish to the satisfaction of the Assistant Commissioner of
Customs or Assistant Commissioner of Central Excise or Deputy Commissioner of Customs or Deputy Commissioner of
Central Excise, as the case may be, that no cenvat facility has been availed for any of the inputs used in the manufacture of the
export product;
(ii) if the goods are exported under bond or claim for rebate of duty of central excise, a certificate from the Superintendent
of Customs or Superintendent of Central Excise in-charge of the factory of production, to the effect that no cenvat facility has
been availed for the goods under export, is produced:
Provided that the certificate regarding non-availment of cenvat facility shall not be required in the case of exports of handloom
products or handicrafts(including handicrafts of brass artware) or finished leather and other export products which are
unconditionally exempt from the duty of central excise.
13. Whenever a composite article is exported for which any specific rate has not been provided in the Schedule , the rates
of drawback applicable to various constituent materials can be extended to the composite article according to net content of
such materials on the basis of a self-declaration to be furnished by the exporter to this effect. In cases of doubt or where
there is any information contrary to the declarations, the proper officer of customs shall cause a verification of such
declarations.
