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No.14/005/012 (DBK)/2005
Sept 6, 2005
Members of the Council
Dear Members,
Sub: All Industry Rates of Duty Drawback – Amendments to the DBK Schedule
As you are aware, the new DBK schedule for All Industry Rates of Duty Drawback for leather & leather products including non-leather footwear was notified by the Department of Revenue, Ministry of Finance vide Notification No. 36/2005-Cus (NT) dated May 2, 2005, which are effective from May 5, 2005
Based on the suggestions received from the Industry members for smooth availment of DBK and also to re-fix realistic DBK ceilings for a few products, the Council has taken up certain issues with the Department of Revenue. Detailed discussions were also held with the officials in the DoR explaining the need for amending the DBK schedule.
In this background, we wish to inform that the Department of Revenue has now amended the DBK schedule vide Notification No.77/2005-Cus (NT) dated Sept 2, 2005. A copy of the said Notification is attached herewith, which is self explanatory.
The salient features of the amendments made in the DBK schedule are summarized below for your ready information:
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Articles of leathers falling under Chapter 42 have been defined on the basis of the outer visible surface area, which is stipulated as 60% and above.
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Similarly, sizes of footwear for adults and children have been defined on the basis of French Points, English sizes, American sizes etc
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DBK rates for finished leather (tariff item 411301) and for lining leather (tariff item 411302) made of Goats / Kids have been separately notified
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The DBK rates for Chamois leathers / patent leathers etc (tariff item 4114) have been notified.
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A residual entry at 1% DBK has been notified for Tariff Items 4107 & 4113
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New entry for leather woven mesh / mats / panels / carpets in rolls or sheets has been notified vide tariff item 42050301 with DBK rate @2.5% of FOB, without any ceiling.
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New entry for leather woven belts / braids / strips / laces in rolls or cut pieces has been notified vide tariff item 42050302 with DBK rate @2% of FOB, without any ceiling
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DBK ceilings for other articles made of leather (tariff item 42050303) & other articles made of leathers in combination with other materials (tariff item 42050304) have been enhanced to Rs.100 (from Rs.50) and Rs.55 (from Rs.27.50) respectively (However, unit of measurement has been wrongly mentioned as per kg. instead of per piece)
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DBK ceilings for leather boots / half boots / shoes for children – tariff item 640309 - have been upwardly fixed at Rs.60 per pair (as against Rs.40).
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Similarly, DBK rates for leather uppers for boots / half boots / shoes for children – tariff item 640607 - have been upwardly fixed at Rs.42 per pair (as against Rs.28)
Member-exporters may kindly note the above and also peruse the amendment Notification in conjunction with the Notification No.36/2005-Cus (NT) for comprehensive information.
Thanking you,
Yours faithfully,
K Abdul Sattar Khan
Asst Director
Encl: as above
Notification
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