The finance ministry has announced the revised duty drawback
rates for all industries, which includes 84 new items.
The new rates are effective July 15.
include cotton bags, leather caps, aluminium artware,
suitcases and handbags of plastics, tractor parts, compressors,
table tennis tables and various other sports equipment
new drawback scheme also takes into account the incidence
of service tax paid on taxable services that go as input
services in the manufacturing or processing of export
goods. The government has also announced suitable amendments
to the customs and central excise duties drawback rules.
The drawback rates were finalised following recommendations
by a committee set up for the purpose. The committee had
held extensive consultations with the various industry
and trade associations and other stakeholders in various
locations before submitting its report on May 15.
duty drawback is an export incentive and determines the
extent to which exporters can claim refund of excise and
customs duties paid by his suppliers. The scheme applies
even to goods that are re-exported.
the drawback rates have undergone changes according to
the prices of inputs, duties etc, in most cases, the rates
have seen an upward revision.
stainless steel cutlery, falling under Chapter 82, the
drawback rate has been raised to 15 per cent while for
semi-finished steel, HR coils, CR sheets, GP sheets and
bars and rods, where the duties are in the range of 2.7
per cent to 3.7 per cent (all customs) the drawback caps
vary from Rs625 per tonne to Rs1,000.
rate for finished leather is 6.6 per cent with a cap of
Rs7 per sq.ft. as against the existing rate of 6.3 per
cent with a cap of Rs5 per sq.ft.
drawback rates on copper cathodes, wire bars and rods
have been reduced from 5 per cent to 2.2 per cent in view
of reduction in the duty on copper concentrates.
drawback of Rs1050 per tonne (all customs) has also been
provided for furnace oil and HSD supplied by domestic
oil companies to the units located in SEZs.
drawback rates are based on certain broad parameters including,
inter alia, the prices of inputs, standard input/output
norms, share of imports in inputs and the applied duty
rates. An element of education cess has been factored
in the drawback rates as it is being collected along with