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No.14/005/176/2002
Dec 30, 2002
Members of the Council
Dear Members,
Sub: 1% Duty free import scheme – Extension of scheme for export of leather wallets & purses
As members are aware, in terms of Customs Notification No.21/2002 dated 1.3.2002 (as amended by Customs Notifications No.72/2002 dated 23.7.2002 and No.131/2002 dated 28.11.2002, read with Customs Circular No.64/2002 dated 7.10.2002) the
manufacturer- exporters of leather footwear, footwear components, leather gloves, travel goods, handbags and similar containers all made of leather as well as leather harness and saddlery are eligible for duty free import facility to the extent of 1% of the previous year’s export.
However, the facility was not made available to manufacturer-exporters of small leather goods such as wallets and purses. The Council represented the matter to the Department of Revenue to cover these products also under the 1% duty free import scheme, in order to provide necessary duty relief on the inputs imported by such exporters.
After effectively pursuing the matter, we now wish to inform the members that the Department of Revenue has recently issued Customs Circular No.96/2002 dated Dec 20, 2002, clarifying that the purses & wallets both made of leather would get covered under the broad heading of “handbags and similar containers all made of leathers” and the manufacturer-exporters of purses & wallets would be eligible to duty free import of permitted embellishments.
The text of the Customs Circular No.96/2002 dated Dec 20, 2002 is appended herewith for your information, reference and necessary guidance.
Member-exporters concerned may please note and avail the benefit of 1% duty free import scheme. The formalities & procedures for availing the duty free import benefit will remain the same as specified in Council’s circular No. 14/05/176/202 dated Aug 2, 2002, which was issued in respect of 1% duty free import facility.
With regards,
Yours sincerely,
S.Audiseshiah
Executive Director
Encl: as stated above
Circular
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