Revised All Industry Rates of Duty Drawback (DBK Rates)

No.CLE/POL/DBK/2008                                                
August 30,2008

Members of the Council

Sub : Revised All Industry Rates of Duty Drawback (DBK Rates)

Dear Member,

We wish to inform you that the Department of Revenue, Ministry of Finance, Government of India has notified the revised All Industry Rates of Duty Drawback covering all export products including leather & leather products vide Customs Notification (Non- Tariff) No. 103/2008 dated August 29, 2008. The revised DBK rates will come into effect from September 1, 2008.

As far as leather and leather products falling under Chapter 41, 42, 43 and 64 are concerned, there is an overall reduction in the DBK rates in the range of 0.3% to 1.6% for most products. The revised Drawback schedule relating to the said Chapters is enclosed herewith.

The Department of Revenue has also issued Customs Circular No.13/2008 in connection with the revised DBK rates, wherein it is stated that the DBK rates have undergone changes in line with changes in prices of inputs, duties etc., and thus the DBK rates have been decreased in most cases. Thus, it may be noted that the reduction in DBK rates have been made not only for leather and leather products but for most of the products in the DBK schedule.

As in the case of last year, the Government of India constituted a three member High Level Committee for formulation of All Industry Rates of Duty Drawback for 2008-09. The Council made a detailed presentation to the High Level Committee about the status of the industry, future potential for growth and the need to provide realistic compensation of duties suffered on inputs used in export product through the revised DBK rates. Based on the discussions with the High Level Committee, submitted a detailed a comprehensive proposal to the Government giving assessment of DBK rates and ceilings on the basis of the input cost data received from members and incidence of customs, central excise duties, service tax and fuel charges suffered in  manufacturing & exporting various products concerning leather sector. The DBK proposal also highlighted the changes to be made in entries in the DBK schedule to facilitate procedural simplification.  

Out of the various changes suggested by the Council, the request of the Council for having a separate entry for Parts/Components of Harness and Saddlery made of leather or non-leather has been considered. Accordingly, a new entry under DBK tariff no. 420104 has been incorporated for these items with a DBK rate of 8.6% and ceiling of Rs.90/-per piece (when CENVAT facility is not availed)

Members may kindly note and avail the Duty Drawback accordingly.

With best wishes
Yours sincerely

 
Elangovan K
Executive Director
COUNCIL FOR LEATHER EXPORTS


NOTE :

In the attached DBK schedule, the page numbers of the Chapters pertaining to Leather Sector are given below.

Chapter 41 - Page nos. 93-95
Chapter 42 - Page nos. 96-99
Chapter 43 - Page no. 100
Chapter 64 - Page nos. 161-164

 

Notifications/Circulars DBK 2008-09 CHAPTER 41, 42, 43 DBK 2008-09 CHAPTER 64