Classification of Small Leather Goods in DBK Schedule
Classification of Small Leather Goods in the Schedule of All Industry Rates of Duty Drawback Schedule
No. CLE-HO/ED/DBK/13-14 March 10, 2014
Members of the Council.
Sub : Classification of Small Leather Goods in the Schedule of All Industry Rates of Duty Drawback Schedule.
Dear Member
As members are aware, as per customs Notification No.98/2013-Customs(NT) dated 14/9/2013 the term ‘article of leather’ in Chapter 42 of the Drawback Schedule shall mean any article wherein 60% or more of the outer visible surface area (excluding shoulder straps or handles or fur skin trimming, if any) is of leather notwithstanding that such article is made of leather and any other material.
However, some of the members reported problems in classifying small leather goods having outer visible surface area consisting of 60% or more of leather under tariff No.420207 in the DBK schedule with the following DBK rates.
| Product Description | NEW RATES | ||
|---|---|---|---|
| Unit | DBK 2013-14 Rate | DBK 2013-14 Cap Rs. | |
| Articles of a kind normally carried in the pocket or hand bag, with outer surface of leather, of composition leather or of patent leather. (420207) | per piece | 7.7% | 70.00* |
The issue was taken up by the Council with the Directorate of Drawback.
The Directorate has orally clarified that in addition to tariff No.420207, there is another tariff No.420210 (as detailed below) with the description with the same drawback rate of 7.7% and cap value of 56.30 per piece as in the case of tariff No.420207.
| Product Description | NEW RATES | ||
|---|---|---|---|
| Unit | DBK 2013-14 Rate | DBK 2013-14 Cap Rs. |
|
| Other Articles, with outer surface of leather , of composition leather or of patent leather (420210) | per piece | 7.7% | 70.00* |
As the DBK rate and cap value are the same for both tariff No.420207 and 420210 as mentioned above, small leather goods having outer surface area excluding of leather can be classified either under tariff No.420207 or under 420210 in the drawback schedule.
Members may kindly note the above.
Thanks & regards,
R. Ramesh Kumar, IAS
Executive Director
Council for Leather Exports