The Central Board of Indirect Taxes and Customs (CBIC) on October 26, 2023, issued a circular regarding the revision of All Industry Rates (AIRS) of Duty Drawback.
The salient features of the revised rates of Duty Drawback are as follows:
• Each tariff item in the Schedule, annexed to the Notification No. 77/2023-Customs (N.T.) dated October 20, 2023, has been provided with an AIR specified under column (4) with a cap of Duty Drawback amount, wherever applicable, given under column (5). For claiming these AIRS, the relevant tariff item has to be suffixed with the letter 'B'.
• AIRS of Duty Drawback has been increased for certain items pertaining to chemicals (Chapter 29), finished and lining leather, leather articles and footwear (Chapters 41, 42 and 64), textiles and articles thereof made of silk/wool/cotton/ MMF other than of nylon) (Chapters 50 to 63), carpets (Chapter 57), glass and glassware (Chapter 70) and gold jewellery and silver jewellery/article (Chapter 71)The increase in AIRS is on account of various factors such as changes in duties, price (CIF) of imported inputs, FOB value of export goods, import intensity of inputs etc.;
• AIRS have been rationalized for various items, including textiles and articles thereof made of nylon, on account of reasons such as a decrease in BCD rate, changes in price (CIF) of imported inputs, FOB value of export goods, import intensity of inputs etc.
Representations have been received from various trade associations and export promotion councils stating that for products consisting of cotton and more than one manmade fibre, the drawback was being denied under tariff item 610902- 'blend containing cotton and manmade fibre' on the ground that the said heading refers only to "manmade fibre" in singular. In this regard, it is clarified that as per section 13 of the General Clauses Act, 1897'- words in singular shall also include the plural and vice versa. In view of this, products containing cotton and more than one manmade fibre are squarely covered by the aforesaid tariff item 610902.
[Circular No. 26/2023-Customs]
