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Dear Members,
As you are aware, the duty free facility for importing the embellishments to the extent of 1% of the previous year’s export value is currently available to manufacturer-exporters of leather footwear, leather gloves, travel goods, hand bags and similar containers all made of leathers. However, this scheme was not extended to leather footwear uppers, harness & saddlery items and small leather goods like wallets, purses etc.
In order to make this scheme purposeful to the leather products industry, the Council repeatedly represented to the Ministry of Finance through letters and direct discussions from time to time, to extend the scheme to all leather products. In view of such representations, the Ministry of Finance has now considered the matter and issued a classificatory circular No.64/2002 dated Oct 7, 2002 (followed by Corrigendum Circular No.64/2002-Customs dated Oct 7), which are attached herewith for your information.
It has been clarified in the said circular that the “description given in the Sr.No 167A and the condition No.21A of the Customs Notification No.21/2002 covers the entire range of export products which are covered under the sub-sectors specified therein. In the case of leather footwear sub-sectors, it shall also cover leather shoe uppers and other parts of leather footwear, which are being exported by the sub-sectors”.
Manufacturer-exporters of leather shoe uppers and other parts of leather footwear may take note of the above and avail the duty free facility for importing the notified embellishments required for export production.
Thanking you,
Yours faithfully,
K. Abdul Sattar Khan
Assistant Director
Oct 10, 2002
Circular
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