No. CLE-HO/POL/DBK/14-15
February 12, 2015

Members of the Council

Sub : All Industry Rates of Duty Drawback for 2014-15 – Amendments

Dear Member

As you are aware, the Drawback rates/cap values for certain items like wallets, purses, leather garments, woven mesh/mats etc., were reduced in the All Industry Rates of Duty Drawback for 2014-15 notified vide Customs Notification (Non- Tariff) No. 110/2014 dated 17th November 2014, which came into effect from November 22, 2014. The Council hence requested the Drawback Directorate to consider enhancing the DBK rates/Cap Values and also submitted the data in this regard.

We are pleased to inform that the Drawback Directorate has favourable considered the requests of CLE and has notified certain amendments in the DBK rates/Cap values vide Customs Notification No. 21/2015 (NT) dated 10th February 2015. The Department of Revenue has also issued a Customs Circular No.06/2015 dated 11.2.2015 in this regard. The revised/amended DBK rates will come into effect from February 13, 2015. The amendments made are as follows.

• Saddlery and Harness for any animal – Others (420199) – Unit changed from KG to Per piece. – Rate increased by 2.3% and Cap increased by Rs.72/- per piece
• Articles of a kind normally carried in pocket or in the hand bag – with outer surface of leather, of composition leather or of patent leather (42020301) – Cap increased from Rs.57/- to Rs.70/- per piece i.e. by Rs.13/- per piece.
• Other Articles – with outer surface of leather, of composition leather or of patent leather (42020401) – – Cap increased from Rs.57/- to Rs.70/- per piece i.e. by Rs.13/- per piece.
• Articles of Apparel, made of leather (420301) – Cap increased by Rs.124/- per piece i.e. from Rs.696/- per piece to Rs.820/- per piece.
• Other Articles of leather/composition leather or of leather in combination with other materials (including woven mesh/mats/panels/carpets in rolls or sheets/woven belts/braids strips/laces/cords in rolls or cut pieces) (420599) – Cap increased by Rs.54.40/- per KG i.e. from Rs.45/- per KG to Rs.99.40 per KG
• Articles of Apparel, made of leather and lining of fur skin/artificial fur – – Cap increased by Rs.124/- per piece i.e. from Rs.696/- per piece to Rs.820/- per piece.

The following new entries have also been notified in Chapter 64 of the Drawback Schedule.

Tariff item	Description of goods	Unit	DBK (CENVAT not availed)		DBK (CENVAT availed)
			Rate	Cap	Rate	Cap
640618	Leather gaiters or chaps	Pair	6.9%	42	1.9%	11.6
640619	Synthetic gaiters or chaps	Pair	6%	31	1.9%	9.8

Members may kindly note the above. Copies of the Customs Notification No. 21/2015 (NT) dated 10th February 2015, Customs Circular No.06/2015 dated 11.2.2015 and also a statement showing the previous and revised Drawback Rates/Cap Values are enclosed herewith for your ready reference.

Thanks and regards

Circular 1 | Circular 2 | Circular 3