Government enforces Revised All Industry Duty Drawback Rates
The government has so far never undermined the goal of export promotion in India. The efforts of the government have been always to boost trade & commerce. In the interest of the exporters, the government has repeatedly amended the customs duties, countervailing duties and anti-dumping duties. The main intent behind such policies has always been to regulate the export-import trade.
In a bid to help the exporters, the government has now revised the Duty Drawback Rates.
#1. What is a Duty-drawback?
The term ‘Duty-drawback’ is a term given to the or partial refund of the Basic Custom duty, Central Excise duty and all other indirect taxes or levies paid by the importers to the Government of India in order to export the goods.
#2. What are the revised provisions of Duty Drawback Rates?
The Central Board of Indirect Taxes and Customs (CBIC) has recently notified the Revised All Industry Duty Drawback Rates for the fiscal year 2018-19. These rates will be applicable with effect from 19th December 2018.
The revised provisions of Duty Drawback Rates are relevant to the traders having Import export code and deal in the specified items of exports and are subject to procedural compliances as notified. Some of the revised provisions of Duty Drawback Rates are discussed as under:
- The tariff items and descriptions of items in the said Schedule are aligned with the tariff items and descriptions of goods in the First Schedule of the Customs Tariff Act, 1975 at the 4-digit level only.
- The descriptions of items at the 6 or 8 digit in the said Schedule are however not aligned with the descriptions of goods given in the First Schedule to the Customs Tariff Act, 1975.
#3. What change has been made w.r.t. Classification of export goods?
The general rules for the explanation of the First Schedule of the Customs Tariff Act, 1975 shall apply for classification of the listed export goods in the said Schedule
Irrespective of whatsoever mentioned in the said Schedule, –
- All art-ware or handicraft goods shall be categorised under the head- art-ware or handicraft (of constituent material) in the relevant Chapters;
- Any distinguishable finished machined spare part or components made of metal (iron, steel or aluminium) not specifically mentioned at 6 digit level or more in Chapter 84/85/87, excluding those classified under heading 8432/8433/8436, may be categorised under the relevant tariff item (on the basis of material composition and processing) under heading 8487/8548/8708, irrespective of classification of such part or component at 4-digit level in Chapter 84/85/87 of the said Schedule;
- For the exporters of sports accessories having a unique Import export code, it’s crucial to know that the sports gloves mentioned under heading 4203/6116/6216 shall be classified in that heading and other types of sports gloves shall be mentioned under head 9506.
If you need any sort of assistance regarding Import export code registration, feel free to contact our business advisor at 8881-069-069.
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