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Dear Members,
This is regarding the announcement made in respect of duty free import of essential inputs for all leather products to the extent of 3% of the preceding year’s export performance, on the lines of the facility available to manufacturer-exporters of leather garments and textile garments.
As already informed to members, the Notification No.48/2002-Customs dated April 22, 2002 issued by the Ministry of Finance was not in tune with the announcement made in this regard. The import entitlement was restricted to only 1% of the preceding year’s export performance (instead of 3%), and the facility was extended to only a few segments of the leather Industry and not to all segments. Disappointed by the Notification, the Council called on Hon’ble Union Minister for Finance & Hon’ble Union Minister for Commerce & Industry and other senior officials of the Department of Commerce / Revenue and represented the matter. The Commerce Secretary also wrote to the Revenue Secretary in this regard. The Council held a detailed discussion with Joint Secretary (Drawback) and requested him to amend the Notification, bringing all the products and their specific inputs under the purview of the scheme, and to fix the import entitlement at 3%.
In the background of such effective efforts, we expected that this matter would be finalized and accordingly notified in the last week itself. As it did not happen, the Executive Director of the Council again discussed this matter with JS (DBK) on May 25. It is understood that the matter was further examined in a meeting with the DGFT, and it is now put up for approval of the Ministry. The indication is that the amendments notifying all inputs as suggested by the Council, may be notified before the end of this week.
Meanwhile, if the members manufacturing & exporting the permitted export products as per the current Customs Notification No.48/2002-Customs dated April 22, desire to avail of the duty free entitlement scheme to the extent of 1% of the preceding year’s export, they may approach the Council’s H.O as well as Regional Offices in this regard for obtaining necessary Certificates. The format of the application for obtaining the Export Performance Certificate & Import Certificate can be had from the Council’s Offices.
The fee for obtaining the Export Performance certificate will be the same as has been fixed for leather garment manufacturer-exporters i.e., 0.020% of the preceding year’s export performance. This is on the premise that we should be able to get 3% duty free import entitlement. In case the entitlement percentage is below 3%, the fee will be suitably altered and refunded wherever necessary.
With best wishes,
Yours sincerely,
S Audiseshiah
Executive Director
May 27, 2002
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