No Change in Customs Duty for following CHAPTERS

As per D.O.F.No.334/5/2015-TRU dated 28.02.2015

THERE IS NO CHANGE IN BASIC CUSTOM DUTY FOR FOLLOWING CHAPTERS

• 01 TO 24
• 31 TO 71
• 75, 77, 78, 79, 80, 82, 83, 86, 88, 89
• 91 TO 98

Duty on the new iPad and the iPad mini is 16.854%

 The  new iPad  and the new iPad mini has just launched minutes ago. After a number  of rumours and speculations, here we witness the launch of two new iPad's by the most valuable company of the world. The iPad mini is a thinner and lighter version of its big 9.7 inch daddy. It weighs  around 310 g which is really lighter than the iPad 4 which weighs around 650 g depending whether it will support sim-card or be a Wi-FI version.


The iPad 4 has improved graphics and  CPU performance  while it retains the same lovely retina display. Also, with the new iPad 4 and iPad mini, we can bid goodbye to the earlier 30-pin connector of the iPad. The new iPad has a much improved camera for all those who like to take photos with their iPad.Both the models will ship with 16 GB, 32GB and 64GB  model variants with no external memory card slots. 


Although rumours about a smaller size variant of the iPad was circulating months ago, the launch of the iPad 4 has surprised many. The reason why Apple launched the iPad 4 now ,instead of its usual march timeline, is unexplained.Maybe the iPad was launched now so that it gained Apple  a headstart against its rivals namely google and microsoft who are preparing for launching some really exciting things for us in near time

 It will attract customs duty  of  16.854% in India

Source for tech specifications : Apple

Calculate Customs duty on Mobile phone ,iphone and ,smartphone

Calculate customs duty on mobile phone imported in to India. Customs Duty levied on mobile phone is 1% for CVD and another 1%  for NCCD. To calculate duty amount ,enter  cost in Indian Rupees after abatement of 35 %  in MRP price .

Mobile Phone
Cost:
Enter Quantity:

Ravindra Kumar

Global Tax Guru

Budget Highlights 2012-2013 for INDIRECT TAX

Budget Highlights 2012-2013

INDIRECT TAX

Service Tax

 Sevice tax confronts challenges of its share being below its potential, complexity

in tax law, and need to bring it closer to Central Excise Law for eventual transition

to GST.

 Overwhelming response to the new concept of taxing services based on negative

list.

 Proposal to tax all services except those in the negative list comprising of 17

heads.

 Exemption from service tax is proposed for some sectors.

 Service tax law to be shorter by nearly 40 per cent.

 Number of alignment made to harmonise Central Excise and Service Tax. A

common simplified registration form and a common return comprising of one

page are steps in this direction.

 Revision Application Authority and Settlement Commission being introduced in

Service Tax for dispute resolution.

 Utilization of input tax credit permitted in number of services to reduce cascading

of taxes.

 Place of Supply Rules for determining the location of service to be put in public

domain for stakeholders’ comments.

 Study team to examine the possibility of common tax code for Central Excise

and Service Tax.

 New scheme announced for simplification of refunds.

 Rules pertaining to point of taxation are being rationalised.

 To maintain a healthy fiscal situation proposal to raise service tax rate from 10

per cent to 12 per cent, with corresponding changes in rates for individual services.

 Proposals from service tax expected to yield additional revenue of `18,660 crore.13

Other proposals for Indirect Taxes

 Given the imperative for fiscal correction, standard rate of excise duty to be

raised from 10 per cent to 12 per cent, merit rate from 5 per cent to 6 per cent and

the lower merit rate from 1 per cent to 2 per cent with few exemptions.

 Excise duty on large cars also proposed to be enhanced.

 No change proposed in the peak rate of customs duty of 10 per cent on nonagricultural goods.

 To stimulate investment relief proposals for specific sectors - especially those

under stress.

Procedure for e-payment Payment of Customs duty

Procedure for e-payment Payment of Customs duty

            In continuation of its efforts for trade facilitation, CBEC has now implemented centralized application called Indian Customs EDI System (ICES1.5) and E-payment facility has been extended to all ICES locations from more than one authorized bank.

(a) Person desirous of availing the E-payment facility must approach the designated bank at the location for opening an INTERNET ACCOUNT (Annexure);

(b) The Central Board of Excise and Customs has set up a CUSTOM E-Payment Gateway (CEG) at ICEGATE (www.icegate.gov.in). The users who are already registered with ICEGATE will automatically be able to avail the facility of e- Payment as REGISTERED USER without any further registration process. However, even the users who are not registered with the ICEGATE can avail e-payment facility as an UNREGISTERED USER;

(c) In the ICEGATE home page, a person can select the e-payment icon from the main menu or if the person is using any other module of ICEGATE (like document filing), he can select the e-Payment option from the side screen menu;

(d) On selection of E-Payment option, the e-Payment page will open. The users already registered with ICEGATE can login with their username and password as REGISTERED USER. Thereafter their (personal) web page would open which will display all the unpaid challans details for the Bills of Entry filed by him;

(e) If the person is an UNREGISTERED USER, or he intends to make payments of duties on the documents not field by him through ICEGATE, then he can make E-Payment by entering the IE Code of the importer. The CEG will display all the unpaid challans against the IE Code;

(f)   On selection of the Challan the user will be shown the options of the “designated” banks for the purpose of E-payment. The user can select any bank authorized for e-payment at the Customs locations;

(g) Thereafter, the user will see the web page of the selected bank. He would be required to login as an “Internet Customer” of the bank;

(h) After successful login in the bank site, the user will be shown the details of the challan including the amount to be paid. The user shall be prompted to confirm the payment option;

(i)   On successful payment, a cyber receipt will be generated by the bank for successful transaction. Then user may take the printout of the cyber receipt for his reference. The bank will prompt the user to come back to the CEG (Customs E-Payment Gateway) after completion of the bank transaction;

(j)   The user must come back to the ICEGATE site to complete the transaction; 

(k)   In case of an incomplete transaction or link failure, a VERIFY option is automatically activated against the concerned challan for verification of the duty payment details. In case of incomplete transaction, the Importer/CHA must go back to ICEGATE and select the VERIFY option against the challan. On selecting the VERIFY option, the importer/CHA is taken back to the site of the Bank for completion of the transaction. The VERIFY option must be exercised on the date of payment itself, and the option would be de-activated the next day;

(l)   After e-payment is made at CEG, ICEGATE will send the payment particulars to the ICES. Thereafter, the Bill of entry shall automatically move to the examination queue;

(m) The importer/CHA need not produce any proof of payment for the clearance of goods in case of e-payment. However, he is advised to keep the copy of the cyber receipt with him for future reference for his own convenience;

(n) In case of problems in e-Payment, the Importer/CHA can contact the ICEGATE 24 hour helpdesk by phone at toll free no. 1800-3010-1000 or by email aticegatehelpdesk@icegate.gov.in. They can also contact the Systems Manger/AC (EDI) at Customs Location, in case of any difficulty.

Making E-payment of Customs duty mandatory-regarding.

F.No.450/180/2009-Cus.IV(Pt.)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

*****

229-A, North Block,

New Delhi, 29^th July, 2011.

To,

All Chief Commissioners of Customs

All Chief Commissioners of Central Excise and Service Tax

                                                                                  

Subject: Making E-payment of Customs duty mandatory-regarding.

Sir / Madam,

            E-payment facility at Customs locations was introduced in 2007 and is available through more than one authorised bank at all major Customs locations having ICES facility. Though voluntary, the facility has been made use of by numerous importers. Besides expediting the process of payment of duty and clearance of imported goods, the facility of e-payment has resulted in reduction of transaction costs.

2.         In the aforestated background, in order to reduce the transaction cost of the importers and expedite the time taken for customs clearance the Board has decided to make e-payment of duty mandatory for the importers paying an amount of Rupees one lakh or more per transaction. Additionally, for Accredited Clients under the Customs Accredited Client Programme irrespective of any amount of duty, the Customs duty will have to be paid through E- payment mode only. The date from which the E- payment will be made mandatory will be notified separately.

3.         DG (Systems) has prepared instructions outlining the procedure for electronic payments. It is requested to sensitise concerned officers, importers, trade and industry regarding the E- payment.

4.         As a large number of taxpayers would be required to pay the taxes electronically, it is requested that importers, trade and industry may be provided all assistance so as to help them in adopting the new procedure.

5.         Suitable Public Notices or Standing Orders may be issued to guide the trade / Industry and officers.

Yours faithfully,

(G.S. Sinha)

OSD (Customs-IV)

Self-Assessment in Customs

Circular No.39/2011-Customs

F.No.450/20/2007-Cus.IV

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

227-B, North Block,

New Delhi-110001.

2^nd September, 2011.

To

All Chief Commissioners of Customs / Customs (Prev.).

All Chief Commissioners of Customs & Central Excise.

All Commissioners of Customs / Customs (Prev.).

All Commissioners of Customs & Central Excise.

All Director Generals under CBEC.

Subject:  Self-Assessment in Customs - regarding.

*****

Sir / Madam,

            Vide Finance Act, 2011, ‘Self-Assessment’ has been introduced under the Customs Act.  Under ‘self-assessment’, responsibility of filing correct declaration lies with the importer or exporter.  The declaration filed by the importer or exporter may be verified by the proper officer when so interdicted by the Risk Management systems (RMS).  In rare cases, such interdiction may also be made with the approval of the Commissioner of Customs or an officer duly authorized by him, who shall not be below the rank of Additional Commissioner of Customs, and that will necessarily be done after making a record of the same in the EDI system.  On account of interdictions, Bills of Entry may either be taken up for action of review of assessment or for examination of the imported goods or both.  If the self-assessment is found to be incorrect, the duty may be reassessed.  In cases where there is no interdiction, there will be no cause for the declaration filed by the importer to be taken up for verification, and such Bills of Entry will be straightaway facilitated for clearance without assessment and examination, on payment of duty, if any.  

2.         Further, provisions have been made in section 17 of the Customs Act, 1962 to empower the officers of Customs to carry out verification of correctness of assessment of duty relating to imported or export goods at premises of the importer or exporter.  This will lead to introduction of ‘On-Site Post Clearance Audit’ in Customs in near future.  The focus of self assessment is reliance on declarations made by the importer and exporter for higher facilitation of consignment at Customs stations and verification of correctness of documents at importer’s or exporter’s premises to detect any infringement. Thus, self-assessment has provided a legal framework to significantly enhance facilitation level in Customs by reducing pre-clearance checks based on risk parameters in case of self assessed documents.

3.         It is felt that subsequent to introduction of self assessment, the existing facilitation levels under RMS could be increased as responsibility of filing correct declarations has been shifted to importers and exporters.  The idea is to move towards a trust based Customs control. Therefore, risk based techniques are desired to be fine tuned to meet this objective.  The risk parameters and risk rules should be so designed so as to have an effective interdiction system.  The matter was also discussed in the meeting of National Risk Management Committee (NRMC) wherein it was decided that conceptually there should be a fixed target for facilitation for different facilities such as Air Cargo, ports, ICDs, etc.   

4.         It has been reported that the level of facilitation on an average in the last year in Air, Sea and ICD was 60%, 50% and 40% respectively. Also, large numbers of transaction selected by RMS were actually found to be compliant.  Therefore, it is felt that there is a need to control the interdiction in RMS and comprehensively rationalize various interventions, targets, rules.  Similarly, there is a need to check tendency of faulty and indiscriminate construction of targets, etc. by local Commissioners.  It is on record that faulty and indiscriminate targets have resulted in false hits and unnecessary interventions. These ineffective interdictions have resulted in delay in clearance of goods.  It is assumed that if this rationalization of redundant and ineffective targets of Local Risk Management (LRM) and National Risk Management (NRM) are carried out, the percentage of facilitation is bound to increase substantially.

5.         To streamline the procedures and for effective implementation of self assessment using RMS, Board has decided that the facilitation target of 80% for Air Cargo Complexes, 70% for Seaports and 60% for ICDs should be achieved in the next six months.

6.         Further, to make NRMC broad based, it is decided to include Joint Secretary (Customs), CBEC as one of the members of the Committee.  Para 5.2 of Board’s Circular No.23/2007-Customs dated 28.6.2007 stands modified to the above extent.  Board has also desired that meeting of NRMC should be held every quarter as outlined in the Board Circular without any exception.

7.         Board desires that decision taken by Board should be complied with strictly.  DG (Systems) and RMD should ensure that necessary rationalization and fine-tuning of the Risk Management System is carried out in a time bound manner so that desired level of facilitation as set out by the Board in respect of Air Cargo Complexes, Seaports and ICDs can be achieved. Board also expects that DG (Systems) should send a report at the interval of two months detailing progress made in this regard to Board.   The first such report may be sent on 25.10.2011.

8.         Difficulty faced, if any, may be brought to notice of the Board immediately.

Yours faithfully,

 ( R. P. Singh )

Director (Customs)

Voluntary payment of duty before final assessment

Circular No.40 / 2011 - Customs

F.No. 528/33/2011-STO (TU)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

299-A, North Block, New Delhi,

9^th September, 2011.

To

All Chief Commissioners / Commissioners of Customs / Customs (Prev.),

All Chief Commissioners / Commissioner of Customs & Central Excise,

All Directors General under CBEC.

Sir / Madam, 

             

Subject: Voluntary payment of duty before final assessment-regarding.

*****

A reference has been received seeking a clarification whether an importer or exporter can be allowed to pay customs duties voluntarily in the period intervening provisional assessment and final assessment.

2.         The issue has been examined by the Board, and accordingly it is clarified that whenever any importer or exporter intimates to the proper officer in writing that he desires to pay voluntarily certain amount of duty of customs, at any time before finalization of the provisional assessment, the following may be drawn to his attention, namely:-

(a)       Such duty should be paid along with interest on the amount of duty so being paid, at the rate fixed by the Central Government under section 28B of the Customs Act, 1962, from the first day of the month in which the duty is provisionally assessed till the date of payment thereof;

(b)       The term and conditions of the bond and the amount of security of surety furnished at the time of provisional assessment shall remain unchanged; and

(c)       No refund of duty will be granted till the assessment is finalised.

3.         Wherever the importer or exporter pays any amount of duty before finalisation of assessment, he shall not incur interest on the amount of duty so paid for the period from the date of such payment till the finalization of assessment. Consequent to final assessment, the interest due will be calculated from the first day of the month in which the duty is provisionally assessed till the date of payment of duty. Also, the amount of duty that is initially provisionally paid or paid in the interim period and interest paid, if any, shall be adjusted against the duty finally assessed, and the interest payable.

4.         Difficulty in implementing this instruction, if any, may be brought to notice of the Board.

Yours faithfully,

(Subodh Singh)

OSD (Customs), Tariff Unit,

Fax-011-23092173

Exports under Duty Drawback Scheme- Reg.

Circular No. 46/2011 - Customs

F.No.603/01/2011-DBK

Government of India

Ministry of Finance

Department of Revenue

*****

New Delhi, the 20^th October, 2011

To                                                                      

All Chief Commissioners of Customs / Customs (Prev).

All Chief Commissioners of Customs & Central Excise.

All Directors General of CBEC.

All Commissioners of Customs / Customs (Prev). 

All Commissioners of Customs (Appeals). 

All Commissioners of Customs & Central Excise.

All Commissioners of Customs & Central Excise (Appeals).

DG, (CEIB)/ DG, Central Excise Intelligence.

DGRI/ DG (EP)/DGI/ DG, NACEN).

DG (Systems and Data Management).

CDR, CESTAT.

Sir/Madam,

                   Subject: Exports under Duty Drawback Scheme- Reg. 

                  

            The C&AG has recently conducted a review on the Duty Drawback scheme. The review and the recommendations contained therein are included in the Audit Report No. 15 of 2011-12 of the Comptroller & Auditor General of India (Indirect Taxes) for the year ending March, 2010. The said Report has since been presented to Parliament and is available on the websitehttp://www.cag.gov.in. The same may please be perused.

2.         The review has highlighted certain systematic and compliance related weakness in matters relating to assessment of export goods and the payment of drawback to exporters. The Board has submitted a detailed ATN (Action Taken Note) in response to the observations and recommendations of the C&AG.

3.         In the background of the recommendations/observations of the C&AG made in the said report, the following instructions are being issued for strict compliance.

3.1       Instructions relation to “identification of goods” and “determination of use” in terms of Section 74 of the Customs Act, 1962.

(a) In terms of the section 74 of the Customs Act, 1962, the export goods are to be identified to the satisfaction of the Assistant/Deputy Commissioner of Customs. This may require examination and verification of various parameters, including but not limited to physical properties, weight, marks and numbers, test reports, if any, documentary evidences vis-à-vis import documents etc., for identification of the goods. If such export goods have been ‘used after import’, the same is to be determined besides establishing the identity of the goods. It may be ensured that in all such cases where drawback under section 74 is claimed, the Assistant/Deputy Commissioner of Customs shall pass a speaking order giving detailed reasons with regard to establishing the identity or otherwise of the goods under re-export, and determination of use, if any, while sanctioning Duty Drawback or otherwise. It may further be noted that the detailed speaking orders, following the principles of natural justice, are to be issued in both cases, i.e. where drawback is proposed to be sanctioned (either in full or part) or proposed to be denied.

3.2   General Instructions with regard to expeditious processing of drawback claims under both Section 74 and Section 75 of the Customs Act, 1962.

(a)    While processing Drawback claims, whether under Section 74 or Section 75, wherever any deficiency is noticed in the claim, the same shall be communicated to the exporter in a clear unambiguous manner within a period of 10 days, from the date of filing of the claim. Further, the drawback claims shall be disbursed in accordance with the timelines as specified in the Citizen’s charter adopted by the department and the Sevottam standards prescribed in this regard. Commissioners of Customs shall undertake a periodic review and monitoring of the status of pending drawback claims.

(b)    The field formations shall ensure that periodic sample checks and verifications are carried out with respect to the export declarations including classification, descriptions, weight etc.; the value of export goods declared as per the Export Valuation Rules; availment/ reversal of CENVAT credit wherever applicable; realization of the export proceeds/ BRC; actual freight payment certificates. It shall be also ensured that the brand rate drawback claims are disposed off in a time bound manner.

(c)    The field formations shall ensure the proper data entry in BRC module of EDI system. Commissioner of Customs shall constitute a special monitoring cell in their respective formations for periodic verification and monitoring of the same. The Monitoring cell will also ensure that the necessary action is taken against the defaulter exporters.

(d)    All previous circulars and instructions issued by the Board in this regard shall be strictly followed.

4.         Suitable standing orders for guidance of staff may also be issued accordingly.

            The receipt of this circular may kindly be acknowledged.

                    Yours faithfully,

Sd/-

(ASHOK KUMAR PANDEY)

Senior Technical Officer (Drawback)

All Industry Rates of Duty Drawback, 2011-12 - Reg.

F.No. 609/82/2011-DBK

Government of India

Ministry of Finance

(Department of Revenue)

Central Board of Excise & Customs

Circular No. -  48/2011-Customs

New Delhi, dated 31^st October, 2011

To

All Chief Commissioners of Customs / Customs (Preventive).

All Chief Commissioners of Customs & Central Excise / Central Excise / Authorized Representative.

All Director Generals under CBEC.

All Commissioners of Customs / Customs (Preventive). 

All Commissioners of Customs & Central Excise / Central Excise /

Authorized Representative.

Subject:  All Industry Rates of Duty Drawback, 2011-12 - Reg.

Sir/ Madam,

             As you are aware, the All Industry Rates (AIR) of Duty Drawback 2011-12 were notified vide Notification No. 68/2011-Cus. (N.T.) dated 22.09.2011. These rates have come into effect on 01.10.2011. Subsequently, the Ministry has received representations on the Drawback Schedule 2011-12 from Export Promotion Councils, Trade associations and individual segments of industry. The representations broadly relate to doubts on classification of items (mainly erstwhile DEPB items) in the Schedule, duty drawback rates, value caps and other miscellaneous matters.

2.         The representations have been duly examined and certain amendments / changes, wherever required, have since been carried out vide Notification No.  75 / 2011-Cus. (N.T.), dated 28.10.2011. The Notification may please be downloaded from CBEC website www.cbec.gov.in and perused for details.

3.         Some of the major changes / amendments carried out in the above mentioned notification are discussed below.

4.         Parts and components made of iron, steel or aluminium through casting or forging process which were earlier covered under various serial numbers of product group 61 (Engineering) of DEPB scheme were incorporated in Chapter 73 or 76, as the case may be, in the Drawback Schedule. Many representations were received stating that these goods merit classification more appropriately under different headings of Chapter 84 or 85 or 87, for which no specific tariff entry has been provided. To resolve this problem, the said entries have been appropriately replicated under headings 8487, 8548 and 8708 to enable exporters to claim drawback on such parts or components, irrespective of classification of such goods at any other four digit level in the Chapter 84 or 85 or 87 of the Schedule. In this regard a new note (3A) has been inserted in the Notes and Conditions of the Notification No. 68/2011-Cus. (N.T.) dated 22.09.2011.

5.         Further, representations have also been received from the trade that certain items merit classification more appropriately under different chapter / heading, instead of the classification as has been provided in the Drawback Schedule. All such representations have been examined and wherever there was merit in the representation, it has been decided to replicate the existing entry/entries appropriately under the tariff heading as has been sought by exporters. However, while replicating these entry/entries, the existing entry/entries in the Schedule have been retained so as to avoid any disputes. Further, in all such cases where existing entries have been replicated, due care has been taken to ensure that the rates of duty drawback / value caps (wherever assigned) are the same for both the existing entries as well as the replicated entries.

6.         It may be noted that the replication of entries as discussed in para 4 and 5 above and the insertion of Note 3(A) as discussed in the preceding para 4  above, is a purely transitory arrangement and with a view to resolving classification disputes.

7.         In some cases, representations have been received for creating new entries as well as for making changes in drawback rates, value caps and in the description of the goods in the Drawback Schedule. All such representations have been examined and wherever the representation was found to have merit, the same has been considered and necessary changes have been carried out as reflected in the amending notification. Thus, for example, composite rate of duty drawback has been provided for all goods falling under headings 7318 and 7418; a single entry under heading 6117 and 6214 has been created for Shawls, Scarves, Stoles, Mufflers, Mantillas & Veils and appropriate value caps provided on per piece basis; Duty drawback rate has also been provided for knitted fabric having a blend of Cotton and MMF (Man Made Fibre).

8.         Certain doubts have been expressed about classification of few erstwhile DEPB items in the drawback schedule wherein it has been pointed out that the classification under drawback schedule does not match with the classification as provided in the Customs Tariff. In this regard attention is invited to the para (1) of the notes and conditions of the notification No. 68/2011-Cus. (N.T.) dated 22.09.2011. It is hereby reiterated that the tariff items and descriptions of goods in the drawback schedule are aligned with the tariff items and descriptions of goods in the Customs Tariff only upto four-digit level. Hence, so long as the alignment is there at the four digit level, there should not be any difficulty for exporters to claim drawback as per the rate specified in the Drawback Schedule, notwithstanding the fact that there may be difference in the classification of the said item at six or more digit level.

9.            Doubts have been expressed regarding simultaneous availment of benefits under Advance License / Advance Authorization Scheme along with All Industry Rates of duty drawback. In this regard attention is invited to the sub para (b) of para (8) of the notes and conditions of the notification No. 68/2011-Cus. (N.T.) dated 22.09.2011. It stipulates that the All Industry Rate of drawback is not available if the goods are exported in discharge of export obligation against Advance Licence except under certain conditions. It is clarified that in general, the benefits of All Industry Rates of duty drawback and Advance Licence Scheme are not available simultaneously. However, in such cases the exporter can always avail the brand rate of duty drawback under rule 6 or rule 7 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, as the case may be and subject to the conditions stipulated therein, for the duty paid inputs used in the manufacture of export goods.

10.        Representations have also been received seeking clarification on the admissibility of duty drawback on Multi Utility Vehicle (MUV) / Sport Utility Vehicle (SUV). It is clarified that MUV / SUV would, for the purpose of drawback, be classifiable under tariff item 870302 as motor cars.

11.        Field formations have expressed some difficulties on the classification of Leather Garments exported under Chapter 42 of drawback schedule. The dispute is over mixed leather and fabric garments which has less than 40% of their surface area made of fabric, and whether they are classifiable under 420301, as “Articles of apparel, made of leather” or under 420302 as “ Articles of apparel, made of leather in combination with other materials”. In this regard attention is invited to the para (17) of the notes and conditions of the notification No. 68/2011-Cus. (N.T.) dated 22.09.2011, which defines the article of leather as any article wherein 60% or more of the outer visible surface area is of leather. It is therefore clarified that the leather garment is classifiable under tariff item 420301 as “Articles of apparel, made of leather”, if 60% or more of the outer visible surface area is of leather and under tariff item 420302 as “Articles of apparel, made of leather in combination with other materials” if the area of leather is less than 60% of the outer visible surface area.

12.        It may please be noted that all changes / amendments as have been carried out through the amending notification No. 75 / 2011-Cus. (N.T.), dated 28.10.2011, come into effect retrospectively from October 1, 2011. In all such cases, wherever it is required, the exporters shall be allowed to file supplementary drawback claims and these claims shall be processed accordingly.

13.        Public Notices and Standing Orders for guidance of the trade and staff may be issued. Difficulties faced, if any, in implementation of the changes may be brought to the notice of the Board immediately. 

   Kindly acknowledge receipt of this Circular.

(Najib Shah)

Joint Secretary (Drawback)

*****