(i)
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification
No. 131/2016 - CUSTOMS (N.T.)
New Delhi, the 31
st
October, 2016
G.S.R. 1018 (E).- In exercise of the powers conferred by sub-section (2) of section 75 of the
Customs Act, 1962 (52 of 1962), sub-section (2) of section 37 of the Central Excise Act, 1944 (1 of
1944), and section 93A and sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), read
with rules 3 and 4 of the Customs, Central Excise Duties and Service Tax 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.110/2015-CUSTOMS (N.T.), dated the
16
th
November, 2015, published vide number G.S.R. 861 (E), dated the 16
th
November, 2015, 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 following notes and conditions, namely:-
Notes and conditions:
(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 or eight digit
or modified six or eight digits in the said Schedule are in several cases not aligned with the
descriptions of goods given in the First Schedule to the Customs Tariff Act, 1975.
(2) The general rules for the interpretation of the First Schedule to the Customs Tariff Act,
1975 shall, mutatis mutandis, apply for classifying the export goods listed in the said Schedule.
(3) Notwithstanding anything contained in the said Schedule, -
(i) all art-ware or handicraft items shall be classified under the heading of art-ware
or handicraft (of constituent material) as mentioned in the relevant Chapters;
(ii) any identifiable ready to use machined part or component predominantly made of
iron, steel or aluminium, made through casting or forging process, and not specifically
mentioned at six digit level or more in Chapter 84 or 85 or 87, may be classified under
the relevant tariff item (depending upon material composition and making process) under
heading 8487 or 8548 or 8708, as the case may be, irrespective of classification of such
part or component at four digit level in Chapter 84 or 85 or 87 of the said Schedule;
(iii) the sports gloves mentioned below heading 4203 or 6116 or 6216 shall be
classified in that heading and all other sports gloves shall be classified under heading
9506.
(ii)
(4) The figures shown in columns (4) and (6) in the said Schedule refer to the rate of
drawback expressed as a percentage of the free on board value or the rate per unit quantity of
the export goods, as the case may be.
(5) The figures shown in columns (5) and (7) in the said Schedule refer to the maximum
amount of drawback that can be availed of per unit specified in column (3).
(6) An export product accompanied with application for removal of excisable goods for
export (ARE-1) and forming part of project export (including turnkey export or supplies) for
which no figure is shown in column (5) and (7) in the said Schedule, shall be so declared by the
exporter and the maximum amount of drawback that can be availed under the said Schedule
shall not exceed the amount calculated by applying ad-valorem rate of drawback shown in
column (4) or (6) to one and half times the ARE- 1 value.
(7) The figures shown in the said Schedule in columns (4) and (5) refer to the total drawback
(Customs, Central Excise and Service Tax component put together) allowable and those
appearing in columns (6) and (7) refer to the drawback allowable under the Customs
component. The difference in rates between the columns (4) and (6) refers to the Central Excise
and Service Tax component of drawback. If the rate indicated is the same in the columns (4)
and (6), it shall mean that the same pertains to only Customs component and is available
irrespective of whether the exporter has availed of Cenvat facility or not.
(8) 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.
(9) 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.
(10) 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
Authorisation or Duty Free Import Authorisation issued under the Duty Exemption
Scheme of the relevant Foreign Trade Policy;
Provided that where exports are made against Special Advance Authorisation
issued under paragraph 4.04A of the Foreign Trade Policy 2015-20 in discharge
of export obligations in terms of Notification No. 45/2016-Customs dated 13
th
August, 2016, the rates of drawback specified in the said Schedule shall apply as
if in the said Schedule-
(i) the heading A and heading B are heading C and heading D,
respectively; and
(ii) the entries in columns (4), (5), (6) and (7) against the Tariff items in
the said Schedule below all Chapters, except Chapter 61 and 62, are
NIL, and those in Chapters 61 and 62 are as specified in the Table
annexed hereto;
(iii)
(c) manufactured or exported by a unit licensed as hundred per cent. Export Oriented
Unit in terms of the provisions of the relevant 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 availing the benefit of the notification No. 32/1997–
Customs, dated 01
st
April, 1997.
(11) The rates and caps of drawback specified in columns (4) and (5) of the said Schedule
shall not be applicable to export of a commodity or product if such commodity or product is –
(a) 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;
(b) manufactured or exported in terms of sub-rule (2) of rule 19 of the said Central
Excise Rules, 2002.
(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:-
(a) 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 or input
services used in the manufacture of the export product;
(b) 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 any of the inputs or input services used in the manufacture of the export
product, 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 art-ware) 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 said 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 and in case of doubt or where
there is any information contrary to the declarations, the proper officer of customs shall cause a
verification of such declarations.
(14) The term „article of leather‟ in Chapter 42 of the said Schedule shall mean any article
wherein (a) 60% or more of the outer visible surface area; or (b) 60% or more of the outer and
inner surface area taken together, excluding shoulder straps or handles or fur skin trimming, if
any, is of leather notwithstanding that such article is made of leather and any other material.
(iv)
(15) The term “dyed”, wherever used in the said Schedule in relation to textile materials, shall
include yarn or piece dyed or predominantly printed or coloured in the body.
(16) The term “dyed” in relation to fabrics and yarn of cotton, shall include “bleached or
mercerised or printed or mélange‟‟.
(17) The term “dyed” in relation to textile materials in Chapters 54 and 55 shall include
“printed or bleached”.
(18) In respect of the tariff items in Chapters 60, 61, 62 and 63 of the said Schedule, the blend
containing cotton and man-made fibre shall mean that content of man-made fibre in it shall be
more than 15% but less than 85% by weight and the blend containing wool and man-made fibre
shall mean that content of man-made fibre in it shall be more than 15% but less than 85% by
weight. The garment or made-up of cotton or wool or man-made fibre or silk shall mean that
the content in it of the respective fibre is 85% or more by weight.
(19) The term “shirts” in relation to Chapters 61 and 62 of the said Schedule shall include
“shirts with hood”.
(20) In respect of the tariff items appearing in Chapter 64 of the said Schedule, leather shoes,
boots or half boots for adult shall comprise the following sizes, namely: -
(a) French point or Paris point or Continental Size above 33;
(b) English or UK adult size 1 and above; and
(c) American or USA adult size 1 and above.
(21) In respect of the tariff items appearing in Chapter 64 of the said Schedule, leather shoes,
boots or half boots for children shall comprise the following sizes, namely: -
(a) French point or Paris point or Continental Size upto 33;
(b) English or UK children size upto 13; and
(c) American or USA children size upto 13.
(22) The drawback rates specified in the said Schedule against tariff items 711301, 711302
and 711401 shall apply only to goods exported by airfreight, post parcel or authorised courier
through the Custom Houses as specified in para 4.72 of the Hand Book of Procedures, 2015-
2020 published vide Public Notice No.1/ 2015-2020, dated the 1
st
April, 2015 of the
Government of India in the Ministry of Commerce and Industry, after examination by the
Customs Appraiser or Superintendent to ascertain the quality of gold or silver and the quantity
of net content of gold or silver in the gold jewellery or silver jewellery or silver articles. The
free on board value of any consignment through authorised courier shall not exceed rupees
twenty lakhs.
(23) The drawback rates specified in the said Schedule against tariff items 711301, 711302
and 711401 shall not be applicable to goods manufactured or exported in discharge of export
obligation against any Scheme of the relevant Foreign Trade Policy of the Government of India
which provides for duty free import or replenishment or procurement from local sources of
gold or silver.
(24) Notwithstanding anything contained in paragraph (7) above, the drawback rate specified
in the said Schedule against tariff items 711301, 711302 and 711401 shall not be applicable to
goods manufactured or exported availing CENVAT facility for any of the inputs or input
services used in their manufacture or availing the rebate of duty paid on materials used in their
(v)
manufacture or processing in terms of rule 18 of the Central Excise Rules, 2002 or
manufactured or exported in terms of sub-rule (2) of rule 19 of the Central Excise Rules, 2002
and the exporter claiming the drawback rate against said tariff items shall make appropriate
declaration at the time of export.
(25) “Vehicles” of Chapter 87 of the said Schedule shall comprise completely built unit or
completely knocked down (CKD) unit or semi knocked down (SKD) unit.
2. All claims for duty drawback at the rates of drawback notified herein shall be filed with
reference to the tariff items and descriptions of goods shown in columns (1) and (2) of the said Schedule
respectively. Where, in respect of the export product, the rate of drawback specified in the said
Schedule is Nil or is not applicable, the rate of drawback may be fixed, on an application by an
individual manufacturer or exporter in accordance with the said rules. Where the claim for duty
drawback is filed with reference to tariff item of the said Schedule and it is for the rate of drawback
specified herein, an application, as referred under sub-rule (1) of rule 7 of the said rules shall not be
admissible.
3. The amount referred in sub-rule (3) of rule 7 of the said rules, relating to provisional drawback
amount as may be specified by the Central Government, shall be equivalent to the Customs component,
as provided by the drawback rate and drawback cap shown in column (6) and (7) in the said Schedule
for the tariff item corresponding to the export goods, if applicable, and determined as if it were a claim
for duty drawback filed with reference to such rate and cap.
4. This notification shall come into force on the 15
th
day of November, 2016.
