| NO.CLE/POL/DBK/2009
March
22, 2008
Members of the Council
IMPORTANT & IMMEDIATE
Dear Members,
Sub: Review of All Industry Rates of Duty Drawback 2008-09
As members are aware, the All Industry Rates of Duty Drawback
for various products including leather and leather products
are reviewed every year after the announcement of Union Budget,
taking into account the budgetary changes in Customs &
Central Excise duties.
In this connection, the Joint Secretary(DBK) in the Department
of Revenue, Ministry of Finance has now issued a communication
to Chairmen & Presidents of all Export Promotion Councils,
giving therein the Proforma for furnishing data on use of
inputs and incidence of Customs & Excise duties on inputs
and service tax on input service.
Accordingly, the information in respect of leather and leather
products has to be provided in the following Proforma:
- Covering Proforma
- Proforma 1.1 (Details of inputs)
- Proforma II (Cost working sheet)
- Proforma III (Details of Service Tax paid)
These are sent herewith as attachments. Separate guidelines
for filling up the Performa is also provided.
Please fill-in these Performa separately for each export
product category i.e., finished leather, leather footwear
& components, leather garments, leather goods, gloves,
harness & saddlery etc.
The Council is required to send the necessary data to the
Department of Revenue in the second week of April, 2008. Therefore,
member-exporters are requested to give priority to this important
matter and send the necessary data to the Council on or before
April 10, 2008 , since the exercise of review of All Industry
Rates for DBK is very crucial to get the DBK rates fixed at
realistic levels.
Further, we also like to inform that the Department of Revenue
has constituted a three member Committee as was done last
year to formulate the All Industry Rates of DBK for 2008-09.
As members are aware, the information provided by the industry
in the prescribed format and the presentation made and the
interaction held with members of the Committee previous year,
has helped the industry and the Council to put forth all the
viewpoints in the DBK matter. Therefore, this year too, such
an opportunity is available to the industry/ Council.
The basic industry data as required by the Department of
Revenue in the prescribed format is very crucial to prepare
comprehensive proposals and explaining to the Committee members
for the purpose of fixing realistic DBK rates for different
product categories.
In this backdrop, the Council would like to seek utmost cooperation
& support from member-exporters and request the members
to furnish proper details on time to the Council. The data
may be submitted to the Council on or before April 10, 2008
as mentioned above.
Please give top most priority to this matter and do the needful.
With regards,
Yours sincerely
Dr K Elangovan
Executive Director
Encl: as above
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GUIDELINES FOR FILLING UP PROFORMA
PROFORMA 1.1
Separate sheet to be given in respect of each export product
The data pertains to consumptions of inputs with respect
to exports made from April 2007 to December 2007, It is preferable
to cover atleast 2 months production to be a representative
sample and not 1 or 2 shipments/models.
The inputs may be broadly classified under Semi finished/
finished leather, chemicals, lining materials, components,
embellishments, packing materials, consumables, fuel etc.
(average prices may be mentioned)
In case of intermediate products/ components such as uppers,
soles etc, purchased or made on job work basis the details
w.r.t Cost of raw materials, consumption etc may be furnished
in separate annexures, wherever it is possible.
PROFORMA II
Separate sheet to be given in respect of each export product
category
The data pertains to consumptions of inputs with respect
to. exports made from October 2007 to December 2007 or July
2007 to September 2007.
The inputs may be broadly classified under Semi finished/
finished leather, lining materials, components, embellishments,
packing materials, consumables, fuel etc.
The information w.r.t. each item of input should be provided
in Column A
Total Cost of INPUTS=(Col 1x3)+(Col 5x 6) of Proforma 1.1.
PROFORMA III
1. It is preferable to give product wise details.
2. If that is not possible then the values may be apportioned
to each product on some equitable basis and a note to that
effect may be appended.
ENCLOSURES
1 SHIPPING BILLS : Enclose 3 or 4 shipping bills of your
company showing highest FOB prices of each product exported
during April 2007 to December 2007. This will enable Council
to recommend for a higher DBK cap
2 Duty Paying Documents – Bill of Entry and Central
Excise Invoice
3 Invoices with TIN ( VAT number)
4 Service Tax Invoices, copy of Service Tax Challan for payment
of tax on foreign agency commission, Goods Transport Agency
etc.,
DBK proforma 1.1 DBK proforma
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