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Dear
Members,
I would like to de-brief the following for your information
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Product
specific embellishments as earlier suggested by the
Council are likely to be notified during the course of
next week, as the Revenue Secretary has been sufficiently
impressed upon about the reasonableness of this request.
The duty free import to the tune of 3% of FOB value in
respect of leather garments will continue. Whereas in
respect of all other leather products, 1% of FOB value as
notified on April 22 will only remain, as the Revenue Dept
has not yet accepted to our plea of 3% entitlement. In the
circumstances, for the present, we have given priority to
have product specific embellishments notified covering all
segments.
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A
clarification has been issued on May 31 by the DGFT after
discussing with the Revenue Dept to the effect that all
DEPB scrips issued even after March 31 against export made
prior to March 31 will not attract the SADC. This will
take retrospective effect in the sense that any such cases
wherein SADC was levied will be appropriately corrected.
Public Notice No.14/2002-07 dated May 31, 2002 issued by
DGFT is attached for your reference.
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In
principle, it has been indicated that the DEPB rates will
be increased to offset the loss of such benefit, arising
out of the levy of SADC as per the Customs Notification
No.45/2002 dated April 22, read with Customs Circular
No.24/2002 dated May 6. This may again take retrospective
effect. This is likely to be done in a few days time,
after going through certain formalities.
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Incidentally,
the All Industry Rates of Duty Drawback have been notified
on May 31 vide Notification No.33/2002-Customs(N.T) dated
May 29 issued by the Revenue Department. The new Drawback
Schedules for Chapter 41, 42 & 64 are separately
hosted in this website. I am happy to say that the last
year’s DBK rates are maintained, and the entries have
been rationalized/simplified as proposed by the Council.
Certain new entries (like golf gloves, combination leather
products) have also been incorporated in the DBK schedule,
on the recommendation of the Council.
It
can be mentioned here that the Council earlier made a strong
plea to the Revenue Department that the reduction in the peak
rate of customs duty from 35% to 30% in the Union Budget
2002-03 did not have much impact on the leather Industry, and
hence this should not be reflected in the drawback rates.
Considering the justifiable suggestion of the Council,
supported with submission of representative cost data, the
Revenue Dept maintained the previous year’s drawback rates
for this year also, though rates have not been increased. In
nutshell, the new drawback rates announced would maintain the
cost competitive edge of the Indian products.
With best wishes,
Yours sincerely,
S. Audiseshiah
Executive Director
June 1, 2002
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