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No.14/005/ 012(DBK)/2005
Nov 22, 2005
Members of the Council
Dear Members,
Sub: Amendments in the duty drawback schedule for leather & leather products
As members are aware, the new DBK schedule was notified, vide Notification No.36/2005-Customs (NT) dated 2nd May 2005 which was effective from
5th May 2005.
Based on the Council’s representations, a few amendments in the said Notification were carried out in the month of Sept 2005 vide Notification No.82/2005-Customs (NT) dated 26th Sept 2005. These amendments were mostly in the form of changes in description and rationalization of entries to facilitate easy availment of
DBK.
As such changes were effective only from 28th Sept 2005 (the date of Notification), the Council requested the Drawback Directorate to give effective to those changes from 5th May 2005 itself, since many of the exporters who have exported various items based on the new DBK schedules were finding it difficult to avail the duty drawback in view of the then existing description / entries of the DBK schedule. Accordingly, the Department of Revenue has now issued Notification No.101/2005-Customs
(NT) giving effect to all such amendment from 5th May 2005. This is a very important announcement, since it would facilitate all the exporters in availing the DBK in accordance with amended entries / description without any interpretation and classification problem. The extract of the Customs Notification No.101/2005 dated 17th Nov, 2005 as it relates to Chapter 41, 42 & 64 are appended separately as Annexure I. for information and guidance of member-exporters.
Enhancement in DBK ceiling for Handbags made of leathers falling under Chapter 42.
As members are also aware, in view of the lower DBK ceiling, fixed for handbags made of leather under DBK Serial No 4202.30 which was Rs.70/- per piece, the Council had strongly represented to the DBK Directorate for enhancing DBK ceiling for this item, supported with necessary data.
After constant follow-up with the Directorate of DBK, the revised DBK ceiling in respect of hand bags made leather has now been notified at Rs.100/- per piece. The relevant extract of the Notification No.102/2005-Customs (NT) dated 17th Nov, notifying enhanced DBK ceiling for this product falling under Chapter 42 is also appended herewith as Annexure II.
Member-exporters may kindly note all the above amendments / enhancement and accordingly avail the All Industry Rates of Duty Drawback for leather & leather products including footwear.
Thanking you,
Yours faithfully,
K Abdul Sattar Khan
Asst Director
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