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DUTY DRAWBACK
New All Industry Rates of Duty Drawback effective from July 15, 2006 No.14/005/012(DBK)/ 2006 July 15, 2006
All members of the Council
Dear members,
Sub: New All Industry Rates of Duty Drawback effective from July 15, 2006
We wish to inform you that the Department of Revenue, Ministry of Finance, Government of India has notified the revised All Industry Rates of Duty Drawback for the year 2006-07 covering all export products including leather & leather products.
We are pleased to inform that the Duty Drawback rates for almost all export items falling under Chapters 41, 42, 43 & 64 have been upwardly revised and the ceilings have also been increased for most of the items.
It may be mentioned here that the Council earlier undertook a comprehensive exercise in compiling the input cost data and incidence of customs & central excise duties suffered on inputs used in manufacturing various export products. The data on incidence of service tax on services availed by the exporters was also compiled during this exercise since the Department of Revenue considered to factor the incidence of service tax through the DBK scheme. Based on the data collected from the member-exporters, the Council submitted a comprehensive proposal to the Directorate of Drawback, justifying for realistic fixation of DBK Rates and also other issues concerning rationalization of entries in the DBK schedule, notifying DBK Rates for new products etc.
As in the case of last year, the Government of India constituted a three member High Level Committee to work out the methodology for calculation of All Industry Rates of Duty Drawback and submit its recommendation of the Government. The Council made a detailed presentation to the High Level Committee about the status of the industry, future potential for growth and the need to provide realistic compensation of duties suffered on inputs used in export product through the new DBK rates.
We are glad to inform the members that the Council’s proposal has been favourably considered by the Department of Revenue in the review exercise and the DBK rates and ceilings have now been enhanced for leather & leather products including non-leather footwear have been enhanced.
The extract of the Customs Notification No.81/2006(NT) dated July 14, 2006, alongwith DBK schedule in respect of Chapters 41, 42, 43 & 64 giving DBK rates are enclosed herewith for information and necessary guidance of member-exporters.
The rates are effective from July 15, 2006.
Members may kindly note and avail the Duty Drawback accordingly.
With best wishes,
Yours sincerely,
Dr K Elangovan
Executive Director
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