Moneycontrol
Feb 10, 2016 08:00 AM IST | Source: PTI

Govt effects changes in duty drawback rates

"The government considered representations, feedback and data related to the All Industry Rates (AIR) of Duty Drawback that took effect on November 23, 2015 and has notified certain changes...," a Central Board of Excise and Customs (CBEC) notification said.

Govt effects changes in duty drawback rates

Government modified duty drawback structure by increasing rates or caps on some products like leather items, steel tanks and also added new classification for several items with effect from February 11.

"The government considered representations, feedback and data related to the All Industry Rates (AIR) of Duty Drawback that took effect on November 23, 2015 and has notified certain changes...," a Central Board of Excise and Customs (CBEC) notification said.

Duty drawback is refund of duties on imported inputs for export items.

As per the notification, drawback rates/caps have been increased for fishing nets and sports nets.

Drawback caps have also been increased for leather articles, leather footwear, steel tanks, cans and tractors.

Caps have also been raised for certain carpets made of wool, silk, and other fabrics.

The notification also said in respect of certain items of stainless or alloy steels, the caps have been adjusted.

Drawback caps are imposed on several export products with an aim to obviate the possibility of misuse by over invoicing of the export value.

As per the changes, descriptions of some tariff items have been amended to include certain products, like notebooks, dresses, skirts, and undivided skirts.

Further, separate tariff entries with AIRs (including caps) have been created for 'hair-on' varieties of mats and carpets, flat-rolled products of stainless steel of thickness of 0.25 mm or less, hollow drill bars and rods of non-alloy steel, among others.

Declining for the 13th month in a row, India's merchandise exports contracted 14.75 per cent in December to USD 22.2 billion due to a steep fall in shipment of petroleum products and engineering goods amid tepid global demand.

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