WITH THE BLESSINGS OF MATA VAISHNO DEVIPublished

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All Disputes subject to Delhi Jurisdiction

PREFACE

R. KRISHNANPlace : Delhi Advocate, New DelhiDate : 18-11-2014 rkriadvo@gmail.com

R.PARTHASARATHY Consultant, Excise, Customs and Service tax

Sarathyassociates @yahoo.com

The revised duty drawback rates (All Industry Rates, 2014-15) have been announced by the Governmentvide Notification No. 110/2014-Cus. (NT), dated 17-11-2014, w.e.f. 22-11-2014. These rates have beenannounced in the background of the new Government having promised whiff of fresh air in policy formulationand expeditious decision making and giving a renewed thrust to the industry and export sector and creatinga congenial atmosphere for its growth.

The inflation rates had till recently maintained a disturbing steadiness at a higher level but in the pasttwo months there has been a decline. Although diesel prices have been de-regulated, there has been adownward revision in the diesel prices, simultaneously the prices of petrol have also been reduced. This willhave significant impact on input costs much to the relief of the industry. Food prices have also been showinga declining trend in recent months. It is in this background that the industry had expected much from theGovernment as far as duty drawback rates are concerned. It is for the industry to appreciate and evaluateas to how far the expectations of different segments/sectors have been met with by the Government.

As usual while presenting this book containing the revised drawback schedule care has been taken torevise the contents also. Government has issued several circulars covering various aspects. A System of RiskManagement (RMS) has been introduced; it will also cover the duty drawback claims/declarations. Auditstream has also been strengthened pursuant to the audit reports which have invited the attention of theGovernment to different issues which came to light during the audit. Commissioners have been advised toensure that proper check is exercised while sanctioning the drawback claim, reducing the dwell time as anexport facilitation measure, need for recording speaking orders in cases of drawback on re-exports in respectof supplementary drawback claims filed etc. This apart a number of decided cases have been added in Chapter10 dealing with the disputes/litigations/judicial rulings in drawback matters.

This revised version of the book we hope will be very useful to every reader and we sincerely trustthat the reference value of this book would meet to the readers expectations.

We are thankful to Mr. R. Sampath, Mr. Kannan and Mr. Yogesh Bisht of our office for their valuablehelp and assistance. We are extremely grateful to Mr. Sandeep Garg of Commercial Law Publishers (India)(P) Ltd. once again for his zeal in bringing this book with great dispatch.

PART IDRAWBACK COMMENTARY

1. Duty DrawbackBackground

1.1 Object and meaning of Drawback ................................................................................................................ 11.2 Drawback on exports .......................................................................................................................................... 11.3 Schemes of neutralisation of duties/taxes in case of exports ....................................................................... 21.4 No sales tax on exports ....................................................................................................................................... 21.5 Meaning and types of drawback ...................................................................................................................... 21.6 Duty Drawback Scheme now subsumes DEPB Scheme ............................................................................... 31.7 Excise duties paid on finished goods exported, claimed as rebate on exports is not drawback ......... 3

2. Drawback of Customs Duties paid on Re-exports of Imported Goods2.1 Background .......................................................................................................................................................... 42.2 Extent of drawback allowed on re-export of duty paid goods ..................................................................... 42.3 Identity of goods to be same to claim benefit of Section 74 .......................................................................... 42.4 Export need not take place from the same port .............................................................................................. 62.5 Drawback restricted to 98 percent of the duty ................................................................................................ 62.6 Drawback in the case of goods which have been used after importation .................................................. 62.7 Drawback under Section 74 is not available to goods used in manufacture .............................................. 72.8 Use of goods before re-export ........................................................................................................................... 72.9 Case laws on section 74 ...................................................................................................................................... 72.9.1 Order on appellants request for re-export for earlier consignment pendingre-export

of present consignment not allowed by an interim order ............................................................................. 72.9.2 Delay in granting let export order not to come in the way of re-export .............................................. 72.9.3 Refusal of importer to take delivery of goods due to financial problemsExporters request

for re-export to be allowed................................................................................................................................. 72.9.4 Re-export of imported goods, when goods imported not tallying with details in the bill

of entry Re-export permissibleRefund also to be allowed ........................................................................ 82.9.5 Claim for duty drawback can be made at appellate stageIf exports had admittedly

taken place, procedures are secondary ............................................................................................................ 82.9.6 Drawback claim in re-exportsto be filed within 3 months from the date of receipt of

Commissioner Appeals order .......................................................................................................................... 92.9.7 Re-exportAfter reprocessing goods must be identified as the same which were imported ................ 92.9.8 Re-exportExamination Report not signed by A.C.Claim not rejectable when report was

signed upto Superintendent level ..................................................................................................................... 92.9.9 Re-exportIdentification of goods under exportis a substantial condition u/s 74 .............................. 92.9.10 Drawback on re-exportWaiver of pre-deposit granted when goods were found confiscated .......... 102.9.11 Part of the goods cannot be allowed to be re-exported under section 74 ................................................. 10

CONTENTS

vi CONTENTS

2.9.12 Application under section 74 cannot be converted into application under section 75 ofCustoms Act .......................................................................................................................................................10

2.9.13 Re-export of goods because of mistake in sending wrong goodsPenalty not to be imposed ............ 102.9.14 Penalty not to be imposedBecause of non-availability of Drug Control Authorities

Certificate re-export sought ............................................................................................................................. 102.9.15 DelayCondonation by Asstt. Commissioner who was not competent to condoneDemand of

drawback granted unreasonable ....................................................................................................................102.9.16 Re-export after repacking/releasing without any value additionDrawback benefit

not available .......................................................................................................................................................112.9.17 Re-export of goodsExamination of goods done by Superintendent but not signed by the A.C.

Drawback cannot be denied ............................................................................................................................ 122.9.18 Imported goods re-exported without there being any process of manufactureDrawback

claim liable to be rejected ................................................................................................................................. 122.9.19 Re-export of unused raw materialPermissible only when the materials are defective or found

unfit for useMere return of materials would not entitle applicant for exemption from duty ........... 132.10 Procedure for claiming drawback under Section 74 .................................................................................... 132.11 Boards Circular regarding drawback on re-exports ................................................................................... 152.11.1 Systemic and compliance related weaknesses .............................................................................................. 152.11.2 Speaking orders to be passed in respect of re-exports under section 74 ................................................... 16

APPENDIX 2.1DRAWBACK RATES IN RESPECT OF GOODS TAKEN INTO USE AFTER IMPORTATION .......... 18

APPENDIX 2.2RE-EXPORT OF IMPORTED GOODS (DRAWBACK OF CUSTOMS DUTIES) RULES, 1995 .............19

APPENDIX 2.3CUSTOMS SERIES FORM NO. 109 ................................................................................................................ 22

APPENDIX 2.4SHIPPING BILL FOR EXPORT OF GOODS UNDER CLAIM FOR DUTY DRAWBACK ....................23

APPENDIX 2.5TEXT OF SECTION 74 OF THE CUSTOMS ACT, 1962 .............................................................................. 25

APPENDIX 2.6WRIT JURISDICTIONDUTY DRAWBACKRE-EXPORTIDENTITY OF GOODSUNDER SECTION 74 OF CUSTOMS ACT, 1962 ......................................................................................... 25

3. Drawback under the Customs, Central Excise Duties and Service TaxDrawback Rules, 1995

3.1 Background ........................................................................................................................................................283.2 No drawback of excise duty on raw material for manufacturers availing Cenvat credit ...................... 283.3 Meaning of Drawback under Drawback Rules, 1995 .................................................................................. 283.4 Meaning of export of goods ........................................................................................................................... 283.5 Meaning of Manufacture ...............................................................................................................................293.6 Scheme of Duty Drawback Rules ...................................................................................................................293.7 Certain materials to be treated as imported materials ................................................................................303.8 No Drawback on certain items in view of galloping inflation and the need to increase supply in

domestic market ................................................................................................................................................303.9 Failure to realise export proceeds Drawback to be recovered by Department ................................... 303.10 Drawback on supplies made to SEZ Units by DTA Units and Appropriate Authority for

sanction of drawback ........................................................................................................................................ 30

APPENDIX 3.1TEXT OF THE CUSTOMS, CENTRAL EXCISE DUTIES AND SERVICETAX DRAWBACK RULES, 1995 ....................................................................................................................33

CONTENTS vii

APPENDIX 3.2MATERIALS DEEMED AS IMPORTED MATERIAL FOR PURPOSES OF DRAWBACK ...................47

APPENDIX 3.3RECOVERY OF DRAWBACK AMOUNT ON THE PORTION OF THE FOB VALUE OFEXPORT NOT REALIZED BY THE EXPORTER BUT COMPENSATED BY ECGC - REG. ................. 50

APPENDIX 3.4PROGRESS IN THE IMPLEMENTATION OF THE BANK REALIZATIONCERTIFICATE (BRC) MODULE ..................................................................................................................... 51

APPENDIX 5.5SYSTEMS ALERT FOR MONITORING REALIZATION OF EXPORT PROCEEDS IN EDI - REG. .... 97

APPENDIX 5.6AUDIT REPORT NO. 15/2011-2012, SECTION 2, DUTY DRAWBACK SCHEME ...............................99

APPENDIX 5.7POST EXPORT EPCG DUTY CREDIT SCRIP(S) SCHEME AND CERTAIN OTHERCHANGES RELATED TO FOREIGN TRADE POLICY 2009-14REGARDING ................................103

4. All Industry Rates of Drawback4.1 Background ........................................................................................................................................................544.2 All Industry Rates of Drawback ...................................................................................................................... 544.3 Different All Industry Rates (AIRs) based upon Cenvat credit availment ............................................... 544.4 All Industry rates (AIRs) applicable even where goods were procured from

duty-exempted sector ....................................................................................................................................... 554.5 No drawback on All Industry Rates (AIRs) in certain circumstances .......................................................554.6 Factors taken into account by the Central Government in determining All Industry

Rates (AIRs) ........................................................................................................................................................554.7 Dates from which rates are effective ..............................................................................................................564.8 Salient Features of All Industry Rates of drawback announced w.e.f. 22-11-2014 vide

Noti. No. 110/2014-Cus. (NT), dt. 17-11-2014 .............................................................................................. 564.9 Option where All Industry Rates are not acceptable to an exporter (Brand Rates) ................................594.10 Provisional drawback at All Industry Rates till disposal of application by the Commissioner ............ 594.11 Duty Drawback to Merchant Exporters purchasing Goods from open market ......................................604.12 Procedure for obtaining the drawback on export at All Industry Rates ................................................... 604.13 Introduction of Risk Management Systems (RMS) in exportspost clearance credit

to look into Duty Drawback claims ................................................................................................................ 604.14 Post-export EPCG Duty Credit Scrips Scheme and Duty Drawback ........................................................60

APPENDIX 4.1GRANT OF ALL INDUSTRY RATE OF DUTY DRAWBACK TO MERCHANTEXPORTERSPERMISSIBLE .........................................................................................................................60

APPENDIX 4.2INTRODUCTION OF RISK MANAGEMENT SYSTEMS (RMS) IN EXPORTSREGARDING ......... 62

5. Procedure for Claiming Drawback under all Industry Rate5.1 EDI SystemSimplified procedure ............................................................................................................... 645.2 Procedure in brief .............................................................................................................................................. 645.3 Drawback Shipping BillHigher Composite All-Industry Rate applicable when CENVAT

facility has not been availed at the time of export processing ....................................................................665.4 Other provisions concerning drawback......................................................................................................... 665.5 Realisation of Export Proceeds ........................................................................................................................715.6 Audit Reportaspects of complianceneed for better performance of internal Audit ....................... 71

viii CONTENTS

APPENDIX 5.1COMPUTERISED PROCESSING OF EXPORT DOCUMENTS AT NEW DELHI CUSTOMS .............71

APPENDIX 5.2I. EXPORT PROCEDURE TOUGHENED, STENCIL MARKING OF EXPORTER

NAME AND INVOICE ON EACH PACKAGE A MUST ...................................................................72II. PROCESSING OF SHIPPING BILLS UNDER EDI SYSTEM IN ICD TUGHLAKABAD ............... 74III. PROCESSING OF ALL CATEGORIES OF BILLS

UNDER EDI SYSTEM IN CHENNAI ..................................................................................................... 82APPENDIX 5.3

CUSTOMS SERIES FORM NO. 93 ..................................................................................................................93APPENDIX 5.4

FILING OF CENVAT CREDIT DECLARATIONRELAXATION OF IN THECASE OF MERCHANT EXPORTERS ............................................................................................................95

6. Brand Rate of Drawback6.1 Background ......................................................................................................................................................1056.2 Special additional duty of customs 4% levied under section 3(5) of the Customs Tariff Actlevied

w.e.f. 1-3-2006 can be claimed as drawback (brand rate) ..........................................................................1056.3 Procedure for applying for brand rateDecentralisation of work ......................................................... 1056.4 Revised procedure to be followed for fixing Brand rates of drawback ..................................................1066.4.1 Organisational Set-up .....................................................................................................................................1066.4.2 Acknowledgement of receipt ........................................................................................................................1066.4.3 Verification of data given in the application ...............................................................................................1066.4.4 Fixation and approval of Brand Rate ...........................................................................................................1076.4.5 Grievances of exporters ..................................................................................................................................1106.4.6 Check-list (of documents to be attached along with brand rate application) ........................................ 110

APPENDIX 6.1FORM NO. 115 ................................................................................................................................................116

APPENDIX 6.2 ...............................................................................................................................................................117FORM NO. 116

APPENDIX 6.3FORM NO. 117 ................................................................................................................................................118

APPENDIX 6.4FORM NO. 118 ................................................................................................................................................119

APPENDIX 6.5FORM NO. 119 ................................................................................................................................................120

APPENDIX 6.6AMENDMENT OF THE CUSTOMS, CENTRAL EXCISE & SERVICE TAX DRAWBACKRULES, 1995 AND THE RE-EXPORT OF IMPORTED GOODS (DRAWBACK OFCUSTOMS DUTIES) RULES, 1995 IN JUNE 2010REG. ........................................................................121

7. Prohibition/Regulation of Drawback in certain cases7.1 Background ......................................................................................................................................................1237.2 Ban on drawback on stores taken on ship of less than 200 tonnes .......................................................... 1237.3 Conditions to be fulfilled for claiming drawback on stores on vessels of less than 1000

tonnes on certain goods ..................................................................................................................................1237.4 Drawback of duty on goods exported to Burma, Nepal, Bhutan etc. .....................................................1247.4.1 Ban on claim of drawback ..............................................................................................................................1247.4.2 Ban not to apply in certain cases ...................................................................................................................124

CONTENTS ix

APPENDIX 7.1BAN ON DRAWBACK ON STORES TAKEN ON SHIPS OF LESS THAN 200 TONNES .................125

APPENDIX 7.2DRAWBACK ON GOODS EXPORTED IN VESSELS OF LESS THAN 1000 TONNES ...................... 125

APPENDIX 7.3BAN ON DRAWBACK OF DUTY ON GOODS EXPORTED TO MYANMAR,NEPAL, BHUTAN ETC. ................................................................................................................................126

8. Drawback in case of Deemed Exports8.1 Meaning of Deemed Exports ..................................................................................................................... 1278.2 Categories of supplies treated as deemed exports .....................................................................................1278.3 Benefits for Deemed Exports .........................................................................................................................1288.4 Benefits to the Supplier ..................................................................................................................................1288.5 Supplies to be made by the main/sub-contractor ......................................................................................1298.6 Procedure for claiming Deemed Exports Drawback ................................................................................. 1298.7 Payment of interest on delayed refund of Deemed Export DBK/TED/CST- Clarification ................ 130

APPENDIX 8.1NOTIFIED PROJECTS FOR DEEMED EXPORT BENEFIT ...................................................................... 130

APPENDIX 8.2APPLICATION FOR FIXATION OR REVISION OF DEPB RATES/FIXATION OFBRAND RATE OF DEPB FOR SAD COMPONENT ................................................................................. 131

APPENDIX 8.3BANK CERTIFICATE OF PAYMENTS FOR DOMESTIC SUPPLIES .................................................... 134

APPENDIX 8.4FORMAT OF CERTIFICATE OF PAYMENTS ISSUED BY THE PROJECT AUTHORITY .................135

9. Drawback of Duty on Fuels Procured from Domestic Oil Companiesby EOUs

9.1 Reimbursement of excise duty paid on fuels procured from domestic oil companies by EOUs ........1399.2 Rates of drawback notified by DGFT ...........................................................................................................1399.3 Changes in procedure in September 2004 ................................................................................................... 1399.4 Procedure for claiming drawback of duties paid on oil procurement from oil companies .................140

10. Disputes/Litigations/Judicial Rulings in Drawback Matters10.1 Drawback disputes .........................................................................................................................................14710.2 Appellate Mechanism .....................................................................................................................................14710.3 Gist of important decisions involving Duty Drawback matters ..............................................................147z Fraudulant Drawback claimMeaning of fraud ....................................................................................... 148z Identity of imported goods ............................................................................................................................148z Export of defective goods ...............................................................................................................................148z Use of imported goods ...................................................................................................................................148z Re-export of imported goods after 100% examination and reopening of the drawback

claim granted earlier not permissible ...........................................................................................................148z Re-export of Sewing Needles after repackingeligible for drawback under Section 74 of

Customs Act, 1962 ...........................................................................................................................................149z Meaning of exports .....................................................................................................................................149z Supply to SEZDuty drawback availableExport duty not leviable ................................................... 149z All Industry Rates ...........................................................................................................................................150z Rejection of brand rate fixation application when no imports have been used in the export .............150z Validity of Brand rate letter to be strictly construed .................................................................................. 150

x CONTENTS

z Brand Rate fixation available even in cases where AIR have been notified ..........................................150z Sanction of drawback against brand rate letter issued under Rule 6(1)(a) of the Duty

Drawback Rules, 1995 Sustainability as All Industry Rates of drawback have been notified ........150z Brand RateCondonation of delay in filing applicationHigh Court directions to be

complied with .................................................................................................................................................151z Brand RateAssessee eligible if cenvat credit not taken..........................................................................151z Condonation delayPeriod spent in pursuing the appeal before Tribunal wrongly, condonable ... 151z Drawback Rules ...............................................................................................................................................151z Classification of goodsBTN classification not to be preferred (old tariff) ...........................................152z Classification of GoodsDescription as per documents submitted along with the shipping

bill will be a relevant criteria unless otherwise disputed on the basis of any technicalinformation or otherwiseBlended Knitwear of cotton fibre containing various percentageof Wool, Poly Acrylic, Polyester Fiber etc.Classifiable under Sl. No. 60.07 and not underSl. No. 61.01 of Drawback Schedule 2002-2003On giving excess drawback claim by theexporter, interest is to be paid automatically without issue of show cause notice ...............................152

z Tribunals directions to be complied with in the absence of stay by the Court .....................................152z Recovery of drawbackSettlement Commission has jurisdiction .......................................................... 152z Recovery of drawback paid must be within a reasonable timeAny recovery proceedings

after 3 years would have the effect of disturbing the settled right .......................................................... 153z Market price and drawback claim ................................................................................................................153z Basic Customs duty paid through debit of DEPB will be not eligible for drawback ............................ 153z Higher Officer can adjudicate and exercise power of lower officer ........................................................153z Commissioners order adjudicating DrawbackAppeal lies to the Tribunal ....................................... 154z Restoration of appeal regarding refund of interest on delayed refundPermissible for

Tribunal to do so ............................................................................................................................................. 154z Suspension of drawback facilityWrit petition not to be entertained when appellate

remedy available ............................................................................................................................................. 154z Rebate on export not available when duty drawback already claimed ..................................................154z Deemed Export DrawbackIt has to be shown that imported goods had suffered duty ..................154z When Drawback was of customs duty cash refund of accumulated CENVAT Credit

held permissible ..............................................................................................................................................155z Delay in filing brand rate application due to delay in getting EP Copy of shipping

billjustified ....................................................................................................................................................155z Condonation of delay wrongly by Asst. CommissionerDrawback given cannot be

demanded back as CBE & C has powers to condone delay ..................................................................... 155z Rejection of condonation of delay in filing drawback on re-exportwhere the order is

unreasoned/cryptic it is unsustainable .......................................................................................................155z Condonation of delay in filing the drawback claim required to be dealt with by competent

authority ...........................................................................................................................................................156z Delay in filing shipping Bill ........................................................................................................................... 156z Rejection of supplementary claims for filing drawback as drawback fixed earlier was not

appealed againstHeld proper ....................................................................................................................156z Appeal ............................................................................................................................................................... 156z Penalty and other actions ...............................................................................................................................156z Principles of natural justice ............................................................................................................................157z High Courts directions seeking clarifications ............................................................................................157z Application for brand rate of drawback after rejection of application for Advance Licence ..............157z General points about drawback ....................................................................................................................157z Section 74 and Section 75 - Comparison ......................................................................................................157z Drawback on re-export of goods imported .................................................................................................158z Draw back under Section 74 of Customs ActLimitation .......................................................................158

CONTENTS xi

z DrawbackAll Industry Rates on Customs component not available when inputsprocured duty-free ..........................................................................................................................................158

z Entitlement of drawback to DTA Unit ......................................................................................................... 158z Delay in claiming drawbackCondoned in the facts of the case ...........................................................159z Rebate of CVD not admissible when claim is for drawback ....................................................................159z Input stage rebate not admissible when export is under Drawback Scheme ........................................ 159z Re-export of goods imported under DEPB SchemeDrawback not permissible ................................159z Irregular availment of drawbackWhen exporter absolved by High Court abettor also

to be absolved ..................................................................................................................................................159z No distinction between manufacturer/job-worker exporter and trader or merchant exporters

in the matter of dutydraw back ....................................................................................................................160z Goods Exported, purchased from marketEligible for drawback by being treated as goods

as having availed MODVAT facility ............................................................................................................160z Export after repacking/re-labelling without any value additionNo drawback available

under Section 75 of the Customs Act, 1962 .................................................................................................160z Availment of Cenvat Credit and subsequent claim of drawback alsoReversal of credit

is not sufficient complianceIneligible drawback to be repaid ..............................................................160z Suspension of Duty Drawback claim since clearance from Investigation agency was awaited

Petitioner to exhaust alternate remedy and not to resort to writ remedy .............................................. 160z Interpretation of entries in Drawback ScheduleAs per plain meaning of words

Fibre Tip pens used by plotter eligible for drawback ................................................................................161z Drawback claims ............................................................................................................................................. 161z Recovery of erroneous drawbackOpportunity of hearing to be given to the exporter ....................161z Anticipatory Bail for alleged Drawback fraudCustoms authorities cannot take person

into custody for custodial investigation.......................................................................................................162z Drawback on goods purchased and exportedExporters to be treated as having availed

modvat credit facility but equitable relief given ........................................................................................ 162z Rebate Textile itemsSimultaneous working under Notification No. 29/04- CE and

30/2004-CE Drawback admissible where duty was paid ...................................................................... 163z Confiscation of goods .....................................................................................................................................164z No time limit for recovery of erroneously sanctioned drawback ............................................................164z Limitation for recovery of drawback especially when addendum to the show cause notice

was issued after five years of drawback ......................................................................................................164z Brand rate of drawback available even in case of SKD exports of Chillers ............................................164z Recovery of drawback claimed beyond 3 year period - not reasonable .................................................164z Condition for sanction of higher rate of export to be satisfied at the time of export

Subsequent reversal of credit by exporter not proper to justify the claim ............................................165z Allowing rebate claim and Duty Drawback benefit on customs portion will not amount

to double benefit ............................................................................................................................................. 165z Facility of AIR rates of drawbacks admissible for goods purchased from open market and

exported ............................................................................................................................................................165z Export of talcum powder in HDPE BottelsClaim of drawback on AIR not proper

liable to be recovered ......................................................................................................................................166z Relinquishment of right of drawback claim by Applicant who had received the Insurance

claim of Rs. 25.59 crores Once the state of identity of impugned goods has already changedand once the applicant has abandoned all rights and interests in the said goods theapplicant should and cannot have any liaison with any happening (profitable or expenditure)connected with those abandoned goodsDrawback claim rejection was held correct ..................166

z Merchant Exporter ..........................................................................................................................................167z Revision in drawback rates by the AuthorityIf not challenged in appeal, would

attain finalityAuthority would be competent to demand excess drawback given ........................... 167

xii CONTENTS

z Retest necessary before rejecting drawback claim .....................................................................................168z Supplementary claim for drawbackdelay must be reasonable ............................................................168z DEPB and Drawback ......................................................................................................................................168z Classification of goods under drawback ScheduleInterpretative Rules of Customs

Tariff applicable ...............................................................................................................................................168z Ex-post Facto extension for realizing sale proceedsDrawback amount paid with interest to the

department to be refunded with interest @6% ...........................................................................................169z Present Market Value .....................................................................................................................................169z Re-Export ..........................................................................................................................................................169z Test Result of Export goods ........................................................................................................................... 169z EPCG Scheme and claim for duty DrawbackDrawback to be allowed .............................................. 169z Over Invoicingis an attempt export prohibited goods ..........................................................................170z Conversion of shipping bills ..........................................................................................................................170z Conversion of free shipping bills into drawback shipping billsonly for reasons beyond

control and not otherwise ..............................................................................................................................171z Conversion of shipping bills from free shipping bills into drawback shipping billsduring

the period between issue of NOC and Final De-bonding Order in the case of 100% EOU .................171z Conversion of drawback shipping bill to advance licence scheme ......................................................... 171z Drawback cannot be stopped based on letter by some advocate ............................................................171z Exports directly by EOU Drawback eligible ...............................................................................................172z Opinion of AEPC not relevant when costing data by importer satisfactory ..........................................172z Fraud in claiming Duty Drawback ............................................................................................................... 172z Extension of time granted by RBI for realization of report proceedsDrawback cannot be

reclaimed by Deptt. when proceeds were realized within the extended time period ..........................179z Fraudulent claim of duty drawbacknon-supply of report relied on in the show cause

notice will vitiate the order as failure to follow principles of natural justice .........................................179z Overvaluation with intention to claim higher drawbackPenalty tenable ..........................................179z Overvalued Exports through thirty bogus firmspenalty imposable ................................................... 180z Penalties for mis-declarationto be proportionate to share of profits in the firm ...............................180z Fraudulent claimsCriminal prosecution cannot be quashed under section 482 of Cr.PC ............... 180z Drawback claim on ladies vests, not covered by Drawback ScheduleDrawback given

liable to be recovered ......................................................................................................................................182z Mis-declaration of Export value for drawbackRevenue not following seriatim the

Customs Valuation RulesMatter remanded back .................................................................................. 182z Mis-declaration of addressnot material ................................................................................................... 182z Penalty for abetting in misdeclaration of value of export goods for obtaining higher drawback ......183z Undue drawback claimCHAs involvementPrinciples of natural justice not followed

in furnishing enquiry report ..........................................................................................................................183z Misdeclaration in ARE-1 that no CENVAT Credit was availedis of no consequence

where exports were not under drawback or cash refund .........................................................................183z Mis-declaration of GoodsDrawback liable to be paid back ..................................................................183z Drawback fraudPenalty for abetment not leviable in absence of proof ............................................. 183z Extended period of limitation applicable in fraudulent drawback claimsDrawback

Rules do not provide for limitation ..............................................................................................................184z Claim of drawback paid by Deptt. due to non-realisation of export proceeds within

6 monthsAppeal rejected by Tribunal for failure to comply with order by pre-depositLiable to be restored when sale proceeds realized later ............................................................................ 184

z Seizure of Bank account containing money of value of excess valued goods exportedagainst which drawback was claimednot permissible when allegation is seizure forsmuggled goods ..............................................................................................................................................184

CONTENTS xiii

z Misdeclaration of valueConfiscation of cash and goods upheldgoods allowed to beredeemed ..........................................................................................................................................................184

z Person merely doing liaison work of collecting documents and giving to Shippingagent-not liable in cases of over-valuation ..................................................................................................188

z Normal time period (limitation) of 3 years applicable for filing writ petitionsDelayed writ to be rejected ............................................................................................................................189

z Order of eviction of propertyCannot be passed by Deputy Commissioner of Customseven though he has powers of attachment of property .............................................................................189

z Supplier of goods for export sharing fraudulantly awailed drawbackliable as abetterCHA liable to penalty on evidence on recordCustoms officer also liable to penalty .......................189

APPENDIX 10.1FORM NO. EA-1 ............................................................................................................................................. 190

APPENDIX 10.2FORM NO. CA-1 ............................................................................................................................................. 191

APPENDIX 10.3FORM EA-3 ......................................................................................................................................................192

APPENDIX 10.4FORM NO. CA-3 ............................................................................................................................................. 193

APPENDIX 10.5RETURN UNDER SECTION 70 OF THE FINANCE ACT, 1994 .............................................................197

APPENDIX 10.6FORM ST-5 .......................................................................................................................................................217

APPENDIX 10.7SHIPPING BILLSCONVERSION OF FREE SHIPPING BILLS TO ADVANCE AUTHORISATION/DEPB/DRAWBACK SHIPPING BILLS AND FROM ONE EXPORT PROMOTION SCHEMETO ANOTHERCLARIFICATIONS ..........................................................................................................218

11. Rebate/Refund of Service Tax paid to Exporters of Goods11.1 Background ......................................................................................................................................................22011.2 New Scheme of rebate of Service Tax to Exporters of goods w.e.f. 1-7-2012 under Notification

No. 17/2009-ST, dt. 7-7-2009 (Superceding Notification No. 52/2011-ST, dt. 30-12-2011) .................22011.3 Salient Features of Notification No. 52/2011-ST, dt. 30-12-2011 .............................................................22111.4 Rebate of Excise duty paid on inputs/services tax paid on all input services and cess used in Services

which are exported to countries other than Nepal and Bhutan (w.e.f. 1.7.2012) .................................. 22311.4.1 Conditions and limitations applicable ........................................................................................................22311.4.2 Procedure to be followed ..............................................................................................................................22411.4.3 Meaning of service tax and cess and duty ...........................................................................................225

APPENDIX 11.1 ............................................................................................................................................................ 226APPENDIX 11.2

REBATE OF SERVICE TAX PAID ON TAXABLE SERVICES WHICHARE RECEIVED BY AN EXPORTER OF GOODS AND USEDFOR EXPORT OF GOODS .............................................................................................................................240

APPENDIX 11.3SERVICE TAX REFUND (STR) TO EXPORTERS THROUGH INDIAN CUSTOMSEDI SYSTEM (ICES) ........................................................................................................................................246

xiv CONTENTS

12. Reimbursement of duty in lieu of drawback for supply of goods toSEZ developers

z Reimbursement Of Duty (ROD) in lieu of drawback for supply of goods to SEZ developers ...........248z Facility of Reimbursement Of Duty (ROD) instead of drawback ............................................................248z Procedure to be followed ...............................................................................................................................248z Claims for ROD in lieu of drawback to be made by Zonal Development Commissioner ...................249APPENDIX 12.1

FORMAT FOR DRAWBACK CLAIM UNDER RULE 30(8) OF SEZ RULES, 2006 ..............................249APPENDIX 12.2

FORM 2BANK CERTIFICATE OF PAYMENTS TO DOMESTIC SUPPLIERS TO BE ISSUEDBY THE RESPECTIVE BANK........................................................................................................................250

CONTENTS xv

PART IIDUTY DRAWBACK SCHEME POLICY CIRCULARS

1. Circular No. 50/96-Cus., dt. 22-10-1996

DrawbackFixation of brand rate without pre-verification ........................................................................2552. Circular No. 82/98-Customs, dt. 29-10-1998

Condonation of delay in filing application for fixation of Brand rate under Customs & CentralExcise Duty Drawback Rules, 1971/1995 ........................................................................................................... 256

3. Circular No. 1/1999-DBK, dt. 18-1-1999The Customs (Amendment) Act, 1998 providing for payment of drawback within 2 monthsAppliesprospectively for claims filed on or after 8-1-1999 ............................................................................................ 257

4. Circular No. 3/99-Customs, dt. 3-2-1999Simultaneous availment of Drawback with DEPB............................................................................................ 258

5. Circular No. 7/99-Cus., dt. 3-3-1999Indian Customs EDI SystemsMeasures to check frauds in disbursement of drawbackRegarding ... 258

6. Circular No. 39/99-Cus., dt. 25-6-1999Extension of Brand Rate of Drawback Scheme to exports under DEPB SchemeReimbursementof Additional Customs Duty (CVD) paid in cash on imported inputs and Excise duty paid onindigenous inputs in export goodsRegarding ................................................................................................ 259

7. Circular No. 2/2000-Cus., dt. 5-1-2000Shipping BillConversion of Free Shipping Bill into Drawback Shipping Bill ........................................... 260

8. Circular No. 4/2000-Cus., dt. 12-1-2000DrawbackFixation of Brand RateTime limit relaxed for filing application ........................................... 260

9. Circular No. 7/2000-Cus., dt. 8-2-2000DrawbackPayment on fabricated export documents modusoperandiCircular ................................................................................................................................................ 261

10. Circular No. 16/2000-Cus., dt. 24-2-2000DrawbackConversion of DBK SBs into DEEC-cum-DBK SBsCircular No. 74/97-Cus. applicable ... 261

11. Circular No. 25/2000-Cus., dt. 30-3-2000DrawbackTime limit for processing revised .................................................................................................. 261

12. Circular No. 44/2000-Cus., dt. 15-5-2000DrawbackPayment under EDI systemCIF/C&F price ............................................................................. 262

13. Circular No. 53/2000-Cus., dt. 6-6-2000Central ExciseMonthly payment of duty by SSIWithdrawal of instruction consequent tochanges brought in Budget 2000-2001. ................................................................................................................ 262

14. Circular No. 54/2000-Cus., dt. 12-6-2000DrawbackClarification on silk carpets & synthetic carpets ......................................................................... 263

15. Circular No. 62/2000-Cus., dt. 14-7-2000DrawbackGrant of All Industry Rate (AIR) of Drawback equivalent to Central Excise duty portion onindigenous inputs used in the manufacture of resultant product exported under DFRC Scheme ........... 263

16. Circular No. 74/2000-Cus., dt. 7-9-2000DrawbackPMVVerification at Customs House ......................................................................................... 264

17. Circular No. 104/2000-Cus., dt. 19-12-2000Validity of brand rate letters issued by the Ministry ........................................................................................ 264

18. Circular No. 105/2000-Cus., dt. 20-12-2000Duty Drawback on Embroidered Silk GarmentsRegarding ........................................................................ 264

xvi CONTENTS

19. Circular No. 5/2001-Cus., dt. 19-1-2001Drawback on Ready-made GarmentsDeduction from f.o.b. value on account ofimported/indigenous hangersRegarding ...................................................................................................... 265

20. Circular No. 8/2001-Cus., dated 20-2-2001Procedure for verification of brand rate applications against export of processedfabrics & garments ................................................................................................................................................ 266

21. Circular No. 25/2001-Cus., dt. 19-1-2001Duty Drawback of Ready-made Garments in the wake of levy of terminalExcise DutyRegarding ....................................................................................................................................... 267

22. Circular No. 23/2001-Customs, dt. 18-4-2001Declaration under Rule 12(1)(a)(ii) of Drawback Rules for availing AIR of Drawback. ............................. 268

23. Circular No. 24/2001-Cus., dt. 20-4-2001Declaration under Rule 12(1)(a)(ii) of Drawback Rules for availing AIR of Drawback. ............................. 268

24. Circular No. 26/2001-Cus., dt. 24-4-2001Market verification for duty drawback disbursement/DEPB verificationRegarding ............................. 269

25. Circular No. 27/2001-Cus., dt. 24-4-2001Eligibility of Drawback for exports made under DFRC SchemeRegarding .............................................. 269

26. Circular No. 39/2001-Cus., dt. 6-7-2001Extension of Brand Rate of Drawback Scheme to exports under DEPB schemeagainst DEPB-cum-Drawback shipping billsRegarding .............................................................................. 270

27. Circular No. 54/2001-Cus., dt. 19-10-2001Problems faced by Merchant Exporters regarding availment of drawbackon garmentsRegarding ...................................................................................................................................... 271

28. Circular No. 64/2001-Customs, dt. 19-11-2001Problems faced by Merchant Exporters regarding availment of drawbackon garmentsRegarding ...................................................................................................................................... 273

29. Circular No. 69/2001-Customs, dt. 26-11-2001Admissibility of All Industry Rates of Drawback to Embroidered Ready-madeGarments and Quilted Made-upsRegarding ................................................................................................. 274

30. Circular No. 77/2001-Cus., dt. 7-12-2001Market verification of Ready-made Garments for duty drawback disbursementRegarding ................. 275

31. Circular No. 11/2002-Cus., dt. 11-2-2002All Industry Rate of Drawback in respect of Ready-made GarmentsRegarding ..................................... 275

32. F.No. 609/24/2002-DBK, dated 24-6-2002Fixation of Brand Rate of Drawback under the Simplified Scheme. .............................................................. 276

33. Circular No. 58/2002-Cus., dt. 12-9-2002Eligibility of drawback on the element of SADRegarding ........................................................................... 287

34. Circular No. 72/2002-Cus., dated 1-11-2002Drawback under section 74 of Customs Act in respect of re-exported goods .............................................. 288

35. Circular No. 74/2002-Cus., dt. 8-11-2002Deduction of Air Freight element from f.o.b. valueRegarding ................................................................... 288

36. Circular No. 4/2003-Cus., dt. 21-1-2003Duty drawback rates for Non-Alloy steel and Alloy steel forgingsRegarding ......................................... 289

37. Circular No. 5/2003-Cus., dt. 21-1-2003Misdeclaration of rags of leather hunters/whips as leather harness. ............................................................ 289

CONTENTS xvii

38. Circular No. 7/2003-Cus., dt. 5-2-2003Admissibility of drawback and Market verification for ascertaining the present market valueunder Drawback SchemeRegarding ................................................................................................................ 290

39. Circular No. 8/2003-Cus., dt. 17-2-2003Acceptance of self-declaration as to the non-availment of Cenvat facility for extendingthe duty drawback. ................................................................................................................................................ 291

40. Circular No. 9/2003-Cus., dt. 17-2-2003Duty Drawback on Composite ItemsRegarding............................................................................................ 292

41. Circular No. 10/2003-Cus., dt. 17-2-2003Sanction of All Industry Rate of Duty Drawback pending fixation of Brand Rate ofDrawbackRegarding .......................................................................................................................................... 292

42. Circular No. 14/2003-Customs, dt. 6-3-2003Decentralisation of the work relating to fixation of Brand Rate of drawback under Rule 6and Rule 7 of the Customs & Central Excise Duties Drawback Rules, 1995. ................................................ 292

43. Circular No. 24/2003-Cus., dt. 1-4-2003Admissibility of duty drawback to the supplies effected by DTA Units to SpecialEconomic ZonesRegarding ............................................................................................................................... 301

44. Circular No. 55/2003-Cus., dt. 25-6-2003Duty drawback rates for Non-Alloy steel and Alloy steel forgingsRegarding ......................................... 302

45. Circular No. 65/2003-Cus., dt. 28-7-2003Acceptance of self-declaration as to the non-availment of Cenvat facility for extendingthe duty drawback. ................................................................................................................................................ 302

46. Circular No. 83/2003-Cus., dt. 18-9-2003Fixation of brand rate of duty drawback by the Central Excise field formations under Rules 6and 7 of the Customs and Central Excise Duties Drawback Rules, 1995Removal ofdifficultiesRegarding.......................................................................................................................................... 302

47. Circular No. 89/2003-Cus., dt. 6-10-2003Fixation of brand rate of duty drawback by the Central Excise field formations under Rules 6 and 7of the Customs and Central Excise Duties Drawback Rules, 1995Removal ofdifficultiesRegarding.......................................................................................................................................... 305

48. Circular No. 97/2003-Cus., dt. 14-11-2003Fixation of brand rate of duty drawback by the Central Excise field formations under Rules 6 and 7of the Customs and Central Excise Duties Drawback Rules, 1995Removal ofdifficultiesRegarding.......................................................................................................................................... 306

49. Circular No. 102/2003-Cus., dt. 8-12-2003Attempt to avail drawback by fictitious/non-existent companiesRegarding........................................... 307

50. Circular No. 108/2003-Cus., dt. 17-12-2003Fixation of brand rate of duty drawback by the Central Excise field formations under Rules 6 and 7of the Customs and Central Excise Duties Drawback Rules, 1995Removal of difficultiesRegarding 307

51. Circular No. 3/2004-Customs, dt. 12-1-2004Revised All Industry Rates of Duty Drawback, 2003-2004 in respect of Knitwears andKnitted GarmentsRegarding ............................................................................................................................ 308

52. Circular No. 4/2004-Cus., dt. 16-1-2004Conversion of free shipping bills into Advance Licence/DEPB/DFRC/Drawback shipping billsand conversion of shipping bills from one export promotion scheme to anotherRegarding ................. 309

53. Circular No. 53/2004-Cus., dt. 13-10-2004Waiver of filing GR forms for exports of value below US $ 25,000 underForeign Exchange Management RegulationsRegarding .............................................................................. 310

xviii CONTENTS

54. Circular No. 2/2005-Cus., dt. 12-1-2005Clearance of imported metal scrapsProcedureRegarding ....................................................................... 310

55. Circular No. 6/2005-Cus., dt. 3-2-2005Admissibility of Duty Drawback in respect of supplies effected by DTA Units to SpecialEconomic ZonesRegarding ............................................................................................................................... 311

56. Circular No. 11/2005-Cus., dt. 3-3-2005Factoring of 2% Education Cess in Brand Rates and Special Brand Rates of Duty Drawbackdetermined under Rule 6 and Rule 7 of the Customs & Central Excise Duties Drawback Rules,1995Regarding .................................................................................................................................................... 312

57. Letter F. No. 609/9/2005-DBK, dt. 9-3-2005Constitution of a Committee for formulation of All Industry Rates of Duty Drawback,2005-2006Regarding ........................................................................................................................................... 312

58. Circular No. 19/2005-Cus., dt. 21-3-2005Admissibility of All Industry Rates of Duty Drawback on Export Goods Manufactured from outof Inputs, some of which are Non-duty paid ..................................................................................................... 313

59. Circular No. 22/2005-Cus., dt. 2-5-2005All Industry Rates of Duty Drawback, 2005-06Regarding ........................................................................... 314

60. Circular No. 26/2005-Cus., dt. 8-6-2005Applicability of drawback on exports in CKD/SKD conditionRegarding................................................ 317

61. Circular No. 27/2005-Cus., dt. 13-6-2005Factoring of duty incidence on HSD and furnace oil in Brand Rates and Special Brand Ratesof Duty Drawback determined under Rule 6 and Rule 7 of the Customs & Central Excise DutiesDrawback Rules, 1995Regarding ..................................................................................................................... 317

62. Circular No. MF(DR) 34/2005 Cus., dt. 5-8-2005Abolition of various declarations ......................................................................................................................... 318

63. D.O.F. No. 609/110/2005-DBK, dt. 26-8-2005Fixation of Brand Rate of Duty Drawback ......................................................................................................... 319

64. Circular No. 41/2005-Customs, dt. 28-10-2005Eligibility of brand rate of duty drawback where inputs used in the manufacture of exportproducts are imported availing of DEPBClarificationRegarding ........................................................... 320

65. Circular No. 18/2006-Cus., dt. 5-6-2006Levy of special additional duty of customs (CVD) @ 4% under Export PromotionSchemeRegarding ............................................................................................................................................... 320

66 CIR NO. 860/18/2007-CX, DT. 22/11/2007Self-sealing of exports goods Regarding .......................................................................................................... 321

67. CIR NO. 849/07/2007-CX, DT. 19/04/2007Guidelines in respect of publication of names under section 37E of the Central Excise Act, 1944. .......... 322

68. CIR. NO. 830/07/2006-CX, DT. 03/07/2006Export WarehousingExtension of facility to Navi Mumbai in the district ofThane in the State of MaharashtraReg. ............................................................................................................. 323

69. CIR. NO. 793/26/2004-CX, DT. 02/06/2004Corrigendum to Circular No.786/19/2004-CX dated 19/05/2004 ................................................................ 323

70. CIR. NO. 736/52/2003-CX, DT. 11/08/2003Subject: Self- sealing of export goods .................................................................................................................. 324

CONTENTS xix

GENERAL NOTES TO DUTY DRAWBACK 2014-2015.................................................................................... 327CIRCULAR TO ALL INDUSTRY RATES OF DUTY DRAWBACK 2014-2015 .......................................... 331SCHEDULE OF DRAWBACK RATES 2014-15z CHAPTER-1 LIVE ANIMALS ...................................................................................................................... 333z CHAPTER-2 MEAT AND EDIBLE MEAT OFFAL ................................................................................. 333z CHAPTER-3 FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC

INVERTEBRATES.................................................................................................................... 334z CHAPTER-4 DAIRY PRODUCE; BIRDS EGGS; NATURAL HONEY; EDIBLE PRODUCTS

OF ANIMAL ORIGIN, NOT ELSEWHERE SPECIFIED OR INCLUDED .................. 336z CHAPTER-5 PRODUCT OF ANIMAL ORIGIN NOT ELSEWHERE SPECIFIED OR

INCLUDED............................................................................................................................... 337z CHAPTER-6 LIVE TREES AND OTHER PLANTS; BULBS, ROOTS AND THE LIKE;

CUT FLOWERS AND ORNAMENTAL FOLIAGE ......................................................... 339z CHAPTER-7 EDIBLE VEGETABLES AND CERTAIN ROOTS AND TUBERS................................. 339z CHAPTER-8 EDIBLE FRUITS AND NUTS, PEEL OF CITRUS FRUIT OR MELONS .................... 340z CHAPTER-9 COFFEE, TEA, MATE AND SPICES .................................................................................. 342z CHAPTER-10 CEREALS ................................................................................................................................... 342z CHAPTER-11 PRODUCTS OF THE MILLING INDUSTRY; MALT; STARCHES;

INULIN; WHEAT GLUTEN ................................................................................................. 343z CHAPTER-12 OIL SEEDS AND OLEAGINOUS FRUITS; MISCELLANEOUS GRAINS,

SEEDS AND FRUIT; INDUSTRIAL AND MEDICINAL PLANTS; STRAWAND FODDER ........................................................................................................................ 343

z CHAPTER-13 LAC; GUMS, RESINS AND OTHER VEGETABLE SAPS AND EXTRACTS............ 345z CHAPTER-14 VEGETABLE PLAITING MATERIALS; VEGETABLE PRODUCTS, NOT

ELSEWHERE SPECIFIED OR INCLUDED ....................................................................... 345z CHAPTER-15 ANIMAL OR VEGETABLE FATS AND OILS AND THEIR CLEAVAGE

PRODUCTS PREPARED EDIBLE FATS; ANIMAL OR VEGETABLE WAXES ........ 346z CHAPTER-16 PREPARATIONS OF MEAT, OR FISH OR OF CRUSTACEANS,

MOLLUSCS OR OTHER AQUATIC INVERTEBRATES ................................................ 348z CHAPTER-17 SUGARS AND SUGAR CONFECTIONERY ..................................................................... 349z CHAPTER-18 COCOA AND COCOA PREPARATIONS ........................................................................ 349z CHAPTER-19 PREPARATIONS OF CEREALS, FLOUR, STARCH OR MILK; PASTRY

COOKS PRODUCTS ............................................................................................................... 350z CHAPTER-20 PREPARATION OF VEGETABLES, FRUITS, NUTS OR OTHER PARTS

OF PLANTS ............................................................................................................................. 351z CHAPTER-21 MISCELLANEOUS EDIBLE PREPARATIONS ................................................................. 352z CHAPTER-22 BEVERAGES, SPIRITS AND VINEGAR ............................................................................ 353z CHAPTER 23 RESIDUES AND WASTE FROM THE FOOD INDUSTRIES; PREPARED

ANIMAL FODDER ................................................................................................................. 354

PART IIIALL INDUSTRY RATES OF DUTY DRAWBACK2014-15

xx CONTENTS

z CHAPTER 24 TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES ............................... 356z CHAPTER-25 SALT; SULPHUR; EARTHS AND STONE; PLASTERING MATERIALS,

LIME AND CEMENT (EXCEPT THE FOLLOWING) .................................................... 356z CHAPTER 26 ORES, SLAG AND ASH ....................................................................................................... 360z CHAPTER 27 MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR

DISTILLATION; BITUMINOUS SUBSTANCES: MINERAL WAXES.......................... 362z CHAPTER 28 INORGANIC CHEMICALS; ORGANIC OR INORGANIC COMPOUNDS

OF PRECIOUS METALS, OF RARE-EARTH METALS, OF RADIOACTIVEELEMENTS OR OF ISOTOPES ............................................................................................ 364

z CHAPTER-29 ORGANIC CHEMICALS ....................................................................................................... 370z CHAPTER 30 PHARMACEUTICAL PRODUCTS ...................................................................................... 384z CHAPTER 31 FERTILIZERS ........................................................................................................................... 388z CHAPTER 32 TANNING OR DYEING EXTRACTS; TANNINS AND THEIR DERIVATIVES;

DYES, PIGMENTS AND OTHER COLOURING MATTER; PAINTS ANDVARNISHES; PUTTY AND OTHER MASTICS; INKS ................................................... 388

z CHAPTER 33 ESSENTIAL OILS AND RESINOIDS; PERFUMERY, COSMETIC OR TOILETPREPARATIONS ..................................................................................................................... 391

z CHAPTER 34 SOAP, ORGANIC SURFACE-ACTIVE AGENTS, WASHING PREPARATIONS,LUBRICATING PREPARATIONS, ARTIFICIAL WAXES, PREPARED WAXES,POLISHING OR SCOURING PREPARATIONS, CANDLES AND SIMILARARTICLES, MODELLING PASTES, DENTAL WAXES AND DENTALPREPARATIONS WITH A BASIS OF PLASTER ............................................................. 393

z CHAPTER 35 ALBUMINOIDAL SUBSTANCES; MODIFIED STARCHES; GLUES; ENZYMES .... 395z CHAPTER 36 EXPLOSIVES; PYROTECHNIC PRODUCTS; MATCHES; PYROPHORIC

ALLOYS; CERTAIN COMBUSTIBLE PREPARATIONS................................................. 397z CHAPTER 37 PHOTOGRAPHIC OR CINEMATOGRAPHIC GOODS................................................. 398z CHAPTER 38 MISCELLANEOUS CHEMICAL PRODUCTS .................................................................. 399z CHAPTER 39 PLASTICS AND ARTICLES THEREOF ............................................................................. 405z CHAPTER 40 RUBBER AND ARTICLES THEREOF ................................................................................ 411z CHAPTER 41 RAW HIDES AND SKINS (OTHER THAN FURSKINS) AND LEATHER ............... 414z CHAPTER 42 ARTICLES OF LEATHER; SADDLERY AND HARNESS, TRAVEL GOODS,

HANDBAGS AND SIMILAR CONTAINERS; ARTICLES OF ANIMAL GUT(OTHER THAN SILKWORM GUT) ................................................................................... 416

z CHAPTER 43 FURSKINS AND ARTIFICIAL FUR; MANUFACTURES THEREOF .......................... 419z CHAPTER 44 WOOD AND ARTICLES OF WOOD; WOOD CHARCOAL........................................ 420z CHAPTER 45 CORK AND ARTICLES OF CORK .................................................................................... 423z CHAPTER 46 MANUFACTURES OF STRAW, OF ESPARTO OR OF OTHER PLAITING

MATERIALS; BASKETWARE AND WICKERWORK ..................................................... 423z CHAPTER 47 PULP OF WOOD OR OF OTHER FIBROUS CELLULOSIC MATERIAL;

RECOVERED (WASTE AND SCRAP) PAPER OR PAPERBOARD ............................ 423z CHAPTER 48 PAPER AND PAPERBOARD; ARTICLES OF PAPER PULP, OF PAPER

OR OF PAPERBOARD .......................................................................................................... 423z CHAPTER 49 PRINTED BOOKS, NEWSPAPERS, PICTURES AND OTHER PRODUCTS

OF THE PRINTING INDUSTRY; MANUSCRIPTS, TYPESCRIPTS AND PLANS... 430z CHAPTER 50 SILK ........................................................................................................................................... 432

CONTENTS xxi

z CHAPTER 51 WOOL, FINE OR COARSE ANIMAL HAIR, HORSEHAIR YARN ANDWOVEN FABRICS .................................................................................................................. 432

z CHAPTER 52 COTTON ................................................................................................................................... 435z CHAPTER 53 OTHER VEGETABLE TEXTILE FIBRES; PAPER YARN AND WOVEN ..........................

FABRICS OF PAPER YARN................................................................................................. 438z CHAPTER 54 MAN-MADE FILAMENTS ................................................................................................... 439z CHAPTER 55 MAN MADE STAPLE FIBRES............................................................................................. 442z CHAPTER 56 WADDING, FELT AND NON-WOVEN; SPECIAL YARNS; TWINE,

CARDAGE, ROPES AND CABLES AND ARTICLES THEREOF ................................ 446z CHAPTER 57 CARPETS AND OTHER TEXTILE FLOOR COVERINGS ............................................. 448z CHAPTER 58 SPECIAL WOVEN FABRICS; TUFTED TEXTILE FABRICS; LACE;

TAPESTRIES; TRIMMINGS; EMBROIDERY ..................................................................... 449z CHAPTER 59 IMPREGNATED, COATED, COVERED OR LAMINATED TEXTILE

FABRICS; TEXTILE ARTICLES OF A KIND SUITABLE FORINDUSTRIAL USE .................................................................................................................. 451

z CHAPTER 60 KNITTED OR CROCHETED FABRICS .............................................................................. 453z CHAPTER 61 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNITTED OR

CROCHETED ........................................................................................................................... 460z CHAPTER 62 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED

OR CROCHETED.................................................................................................................... 470z CHAPTER 63 OTHER MADE UP TEXTILES ARTICLES; SETS; WORN CLOTHING AND

WORN TEXTILE ARTICLES; RAGS ................................................................................... 480z CHAPTER 64 FOOTWEAR, GAITERS AND THE LIKE; PARTS OF SUCH ARTICLES ................. 483z CHAPTER 65 HEADGEAR AND PARTS THEREOF ............................................................................... 486z CHAPTER 66 UMBRELLAS, SUN UMBRELLAS, WALKING-STICKS, WHIPS, RIDING-CROPS

AND PARTS THEREOF ........................................................................................................ 487z CHAPTER 67 PREPARED FEATHERS AND DOWN AND ARTICLES MADE OF FEATHERS

OR OF DOWN; ARTIFICIAL FLOWERS; ARTICLES OF HUMAN HAIR ............... 487z CHAPTER 68 ARTICLES OF STONE, PLASTER, CEMENT, ASBESTOS, MICA OR SIMILAR

MATERIALS ............................................................................................................................. 488z CHAPTER 69 CERAMIC PRODUCTS .......................................................................................................... 491z CHAPTER 70 GLASS AND GLASSWARE.................................................................................................. 494z CHAPTER 71 NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PRECIOUS

STONES, PRECIOUS METALS, METALS CLAD WITH PRECIOUS METAL,AND ARTICLES THEREOF; IMITATION JEWELLERY; COIN ................................... 498

z CHAPTER 72 IRON AND STEEL ................................................................................................................. 501z CHAPTER 73 ARTICLES OF IRON OR STEEL ......................................................................................... 504z CHAPTER 74 COPPER AND ARTICLES THEREOF ................................................................................ 509z CHAPTER 75 NICKEL AND ARTICLES THEREOF................................................................................. 511z CHAPTER 76 ALUMINIUM AND ARTICLES THEREOF ...................................................................... 511z CHAPTER 78 LEAD AND ARTICLES THEREOF ..................................................................................... 513z CHAPTER 79 ZINC AND ARTICLES THEREOF ...................................................................................... 513z CHAPTER 80 TIN AND ARTICLES THEREOF ......................................................................................... 514z CHAPTER 81 OTHER BASE METALS; CERMETS ARTICLES THEREOF .......................................... 514

xxii CONTENTS

z CHAPTER 82 TOOLS, IMPLEMENTS, CUTLERY, SPOONS AND FORKS, OF BASEMETAL; PARTS THEREOF OF BASE METAL ................................................................ 515

z CHAPTER 83 MISCELLANEOUS ARTICLES OF BASE METAL .......................................................... 518z CHAPTER 84 NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL

APPLIANCES; PARTS THEREOF ....................................................................................... 521z CHAPTER 85 ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF;

SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE ANDSOUND RECORDERS AND REPRODUCERS, AND PARTS ANDACCESSORIES OF SUCH ARTICLES ................................................................................ 537

z CHAPTER 86 RAILWAY OR TRAMWAY LOCOMOTIVES, ROLLING-STOCK ANDPARTS THEREOF; RAILWAY OR TRAMWAY TRACK FIXTURES ANDFITTINGS AND PARTS THEREOF; MECHANICAL (INCLUDINGELECTRO-MECHANICAL) TRAFFIC SIGNALING EQUIPMENT OFALL KINDS .............................................................................................................................. 547

z CHAPTER 87 VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING-STOCK,AND PARTS AND ACCESSORIES THEREOF ................................................................ 548

z CHAPTER 88 AIRCRAFT, SPACECRAFT, AND PARTS THEREOF .................................................... 552z CHAPTER 89 SHIPS, BOATS AND FLOATING STRUCTURES ............................................................ 552z CHAPTER 90 OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING,

CHECKING, PRECISION, MEDICAL OR SURGICAL INSTRUMENTSAND APPARATUS; PARTS AND ACCESSORIES THEREOF ..................................... 554

z CHAPTER 91 CLOCKS AND WATCHES AND PARTS THEREOF ..................................................... 559z CHAPTER 92 MUSICAL INSTRUMENTS; PARTS AND ACCESSORIES OF

SUCH ARTICLES ............................................................................................................................................... 560z CHAPTER 93 ARMS AND AMMUNITION; PARTS AND ACCESSORIES THEREOF ................... 562z CHAPTER 94 FURNITURE; BEDDING, MATTRESSES, MATTRESS SUPPORTS, CUSHIONS

AND SIMILAR STUFFED FURNISHINGS; LAMPS AND LIGHTINGFITTINGS, NOT ELSEWHERE PECIFIED OR INCLUDED; ILLUMINATEDSIGNS, ILLUMINATED NAME PLATES AND THE LIKE; PREFABRI-CATED BUILDINGS .............................................................................................................. 563

z CHAPTER 95 TOYS, GAMES AND SPORTS REQUISITES; PARTS AND ACCESSORIESTHEREOF .................................................................................................................................. 564

z CHAPTER 96 MISCELLANEOUS MANUFACTURED ARTICLES ........................................................ 566z CHAPTER 97 WORKS OF ART, COLLECTORS PIECES AND ANTIQUES .................................... 569

PART - I

Drawback CommentaryDrawback CommentaryDrawback CommentaryDrawback CommentaryDrawback Commentary