No.CLE/POL/DFIS/2008
Jan. 5, 2008

Members of the Council.

Sub : Duty Free Import Scheme ( DFIS) – Eligibility of snap fasteners (snap buttons), zippers etc., for benefit under notification no. 21/2002- Cus – reg.

Dear Member,

As you are aware, the Council is issuing necessary Export Performance Certificates (EPCs) and Import Certificates (ICs) to manufacturer exporters of leather garments as well as all leather products including footwear for availing duty free import of essential inputs, components and embellishments to an extent of 3% of previous year’s FOB value, as per Customs Notification no. 21/2002 dated 1.3.2002, as amended from time to time.

Member-exporters are also aware that the list of eligible inputs/ components /embellishments for leather garments manufacturers are listed under serial no. 167 and 168 of the said Customs Notification no. 21/2002 dated 1.3.2002 while the list of such eligible inputs/ components /embellishments for manufacturers of leather products including footwear are listed under serial no. 167- A of the said Notification.

Fasteners are one of the eligible inputs listed under serial nos. 167 and 167-A of the Customs Notification no. 21/2002 dated 1.3.2002. The Central Board of Excise and Customs have issued a Customs Circular no. 44/2007- Customs dated 18.12.2007 which contains clarifications on applicability of Duty Free Import Scheme to certain types of fasteners and zippers, so as to ensure uniformity in classification and assessment of goods covered under duty exemption entries. A copy of the said Customs Circular is attached herewith.

The extract of the Circular is given below for ready reference of members.

Press fasteners and the like goods are classified under sub heading 9606 10. Clearly, these are different type of fasteners and it is clarified that they are eligible for benefit under notification no. 21/2002- Cus. Sl. Nos. 167, 167A or 167 B, as the case may be as “ Fasteners” .

Zippers are nothing but slide fasteners. Slide fasteners including zip fasteners and their parts are classified under heading 9607. It is clarified that slide fasteners are also eligible for benefit under notification no. 21/2002- Cus. Sl. Nos. 167, 167A or 167 B, as the case may be as “ Fasteners” .

Member-exporters may kindly note the above and accordingly avail the benefits of Duty Free Import Scheme.

With regards

Dr. K. Elangovan

Executive Director
Notifications/Circulars