Notifying All Industry Rates (AIR) of Duty Drawback w.e.f. 22.11.2014

[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)

New Delhi, the 17^th November, 2014

Notification

No. 110 / 2014 – CUSTOMS (N.T.)

G.S.R. 814 (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.98/2013-CUSTOMS (N.T.), dated the 14^th September, 2013, published vide number G.S.R. 632 (E),
dated the 14^th September, 2013, 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 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)             
Notwithstanding anything contained in the
said Schedule, –

(i)                  
all
artware or handicraft items shall be classified under the heading of artware 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.

(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 under the drawback rate and drawback cap
appearing below the column heading “Drawback when Cenvat facility has not been
availed” refer to the total

drawback (Customs, Central Excise and
Service Tax component put together) allowable and those appearing under the
column heading “Drawback when Cenvat facility has been availed” refer to the
drawback allowable under the Customs component. The difference between the two
columns refers to the Central Excise and Service Tax component of drawback. If
the rate indicated is the same in both the columns, 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 Licence or
Advance Authorisation or Duty Free Import Authorisation issued under the Duty
Exemption Scheme of the relevant Export and Import Policy or 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 or 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 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 Central Excise Rules,

2002.

(12)         
Wherever
specific rates have been provided against tariff item in the said 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.

(13)         
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 artware) or finished leather and other export products
which are unconditionally exempt from the duty of central excise.

(14) 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.

(15)         
The
term ‘article of leather’ in Chapter 42 of the said Schedule shall mean any
article wherein 60% or more of the outer visible surface area (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.

(16)         
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.

(17)         
The
term “dyed” in relation to fabrics and yarn of cotton, shall include “bleached
or mercerised or printed or mélange’’.

(18)         
The
term “dyed” in relation to textile materials in Chapters 54 and 55 shall
include “printed or bleached”.

(19)         
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.