New Drawback Schedule w.e.f.1.10.2017 – Customs Circular No. 38

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October 3, 2017

Members of the Council,

Sub : New Drawback Schedule w.e.f.1.10.2017 – Customs Circular No. 38

Dear Sir,

This is in continuation to our earlier circular of Sept. 25, 2017 (given below) regarding new drawback schedule with effect from 1.10.2017. For more clarification, we are also enclosing herewith Customs Circular No. 38/2017 dated 22.9.2017, which states the following.

  • As drawback is limited to incidence of duties of Customs on inputs used and remnant Central Excise Duty on specified petroleum products used for generation of captive power for manufacture or processing of export goods, only general AIRs under column (4) with caps under column (5) have been provided in the Schedule. For claiming these general All Industry Rate of Duty Drawback (AIRs), the relevant tariff item have to be suffixed with suffix ‘B’ e.g. for export of goods covered under tariff item 640609, the drawback serial no. should be declared as 640609B;
  • The Composite rates (i.e. higher rates) of Drawback are being discontinued w.e.f. 1.10.2017. Hence, the composite rates and Notes and Conditions pertaining to CENVAT credit, rebate of Central Excise duty, etc. stand omitted. Thus, the declaration required to be given by an exporter for claiming composite rate of drawback w.e.f. 1.7.2017 as per Circular no. 32/2017-Customs dated 27.7.2017 is no longer required w.e.f. 1.10.2017;
  • In terms of Rule 20 of the Drawback Rules, 2017, brand rates of drawback already fixed will not apply for exports with Let export date 1.10.2017 onwards. Thus, exporters will be required to apply fresh for fixation of Brand Rate under Rule 6 or Rule 7 for such exports.
  • The tenure of the Drawback Committee constituted by the Central Government has been extended to 31.12.2017 to expeditiously look into issues arising from the changes made. Accordingly, exporters may immediately come forward with representations with supporting data and documents, if any, for higher rates than rates provided. Accordingly, the Council is compiling the necessary cost data for submission to the Drawback Directorate.

Members may kindly note the above. From the above, it may be noted that Drawback Schedule w.e.f.1.10.2017 will be restricted only to Customs Portion i.e. Cenvat Availed Portion of earlier Drawback schedule.

Thanks and regards

R.Ramesh Kumar

Executive Director

No. CLE-HO/POL/DBK/17-18
Sept. 25, 2017

Members of the Council

Sub : New Drawback Schedule w.e.f.1.10.2017

Dear Member

We wish to inform that the Dept. of Revenue has issued a Customs Notification No. 89/2017 (non-Tariff) dated 21.9.2017 (copy enclosed) notifying the new Drawback schedule which will come into effect from Oct. 1, 2017.

The new Drawback Schedule for Chapters 41 (leather), 42 (goods and garments) and 64 (footwear) is enclosed.

This Drawback schedule is confined only to the Cenvat availed portion ( i.e. Customs Portion) of the previous Drawback Schedule. However, the rates and cap values for leather, leather products and footwear are the same as per Cenvat availed portion ( i.e. Customs Portion) of previous Drawback schedule notified last year in Oct. 2016.

This is for kind information of members.

Thanks and regards

R. Ramesh Kumar
Executive Director

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