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Amendments effective from 15.01.2017 to the All Industry Rates of Duty Drawback

Central Board of Excise & Customs(CBEC) Circular No. 02/2017-Customs dated 13th January, 2017

1. The Government considered representations, feedback and data related to the All Industry Rates (AIR) of Duty Drawback that took effect on 15.11.2016 and has notified certain changes vide Notification No. 03/2017-Customs (N.T.) dated 12.01.2017 (link).

These changes take effect from 15.01.2017. The notification should be downloaded from www.cbec.gov.in and perused. The changes made, inter-alia, include –

(a) Tariff entry for ‘Surimi Fish Paste’ under tariff item 160401 has been shifted to 030402 and description of tariff item 160401 has been amended to read as ‘Surimi Analogue Product’ to address classification issue;
(b) Drawback cap is being increased for tariff item 500799 (other Silk fabric);
(c) Drawback rates/caps are being changed for Man-made fibre floor coverings covered under tariff items 570104, 570203, 570303, 570402 & 570503 and for babies garments covered under tariff items 611101 & 620901;
(d) Drawback rates are being decreased for Gold jewellery, Silver jewellery and silver articles covered under tariff items 711301, 711302 and 711401.


2. The amendments in the First Schedule to the Customs Tariff Act, 1975 notified in Section 141 of the Finance Act, 2016 regarding the changes from the WCO Harmonized System Nomenclature 2012 edition to the 2017 edition have been implemented with effect from 01.01.2017. As the tariff items and description of goods in the AIR Drawback Schedule are aligned with the tariff items and description of goods in the First Schedule to the Customs Tariff Act at the Four Digit Level, the tariff items and description of goods in the AIR Drawback Schedule have been accordingly amended. The changes made, inter-alia, include –

(a) Descriptions of tariff items 1211, 2206, 2853, 2939, 6907, 8205, 8308, 8442, 8466, 8473, 8439 and 8541 are amended;
(b) Tariff items 690701, 690702, 690703 and 690799 have been created to cover both glazed and unglazed tiles. Tariff item 6908, 690801, 690802 and 690899 for glazed tiles have been deleted.
(c) Tariff items 2848 and 8469 are omitted.
(d) New entry with AIR is being created separately for “Monopods, bipods, tripods and similar articles” under tariff item 9620;

3. Notes and conditions No. 3 (ii) of the AIR Notification No. 131/2016-Cus (N.T.) has been amended so that the parts or components of agriculture equipment (of tariff item 8432, 8433 and 8436) remain classifiable under respective tariff items only.

4. Suitable public notices/standing orders should be issued for guidance of the Trade/field formations. Difficulties faced, if any, in implementation of the changes may be brought to the notice of the Board.

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