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No 14/005/093 /2004
Oct 7, 2004
Members of the Council
Dear Members,
Sub: Central Excise exemption on raw, tanned & dressed furskins
As you are aware, in terms of Para 1B.1(v)(f) of the National Foreign Trade Policy, one of the specific sectoral strategies notified for leather sector pertains to CVD exemption on raw, tanned and dressed furskins falling under Chapter 43 of ITC (HS).
This particular sectoral initiative was notified in the Policy, based on the suggestions made by the Council from time to time as the Customs authorities levy 16% CVD on import of raw, tanned & dressed furskins, classifying under lone entry appearing in the Central Excise Tariff Heading No.43.01 with the description "manufactures of furskins and artificial fur". Though these materials are totally exempted from customs duty, the levy of 16% CVD resulted in increased landed cost.
In this regard, the Department of Revenue issued a Notification No.51/2004-Central Excise dated Sept 17, 2004, exempting raw, tanned and dressed furskins falling under Chapter 45 from the levy of Central Excise duty. Consequently, the CVD on these materials would be exempted from levy of 16% CVD on its import. A copy of the said Notification is appended herewith for your information and necessary guidance.
Manufacturer-exporters may kindly take note of the above positive measure taken by the Government to promote export from leather sector.
Thanking you,
Yours faithfully,
K Abdul Sattar Khan
Assistant Director
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