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Regular-article-logo Tuesday, 29 April 2025

DRAWBACK RATES TO COVER 7 NEW ITEMS 

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FROM OUR CORRESPONDENT Published 20.05.99, 12:00 AM
New Delhi, May 20 :    New Delhi, May 20:  The government today announced fresh duty drawback rates for 782 items, including seven new ones. To be effective from June 1, the new rates are intended to counter the indirect tax changes in the 1999-2000 budget.The new products include naphtha, tea, two kinds of textile machineries, composite gaskets and two kinds of fancy gloves. The rates on 155 products have been increased to neutralise the effect of a customs duty hike imposed as a surcharge and additional levy on some raw materials. However, rates on about 489 products were reduced as they have benefited, in the form of lower duties, from the rationalisation of central excise duties and additional duties in the budget. The duty rates are unchanged for 193 products. The items on which drawback rates have been raised include readymade garments, hand tools, bicycles, brass artware, brass builder hardware, leather products, made-ups, food products and perfumed agarbatis. The government has fixed a maximum value cap on 131 export products to limit the drawback amount payable on them, preventing exporters from obtaining disproportionate drawback by inflating or misdeclaring their export values. The government has also permitted exporters from the handloom and cottage sectors to dispense with the need to furnish a proof of non-availment of modvat credit on their inputs.This will free the exporters from repeatedly obtaining certificates from the central excise authorities. To facilitate drawback payments, the electronic data interchange (EDI) system will now be extended to the ports of Nhava Sheva, Chennai, Calcutta, Visakhapatnam and Cochin, while Mumbai, Kandla and Goa ports will soon be added to the system. Once the facility is in place, about 95 per cent of the disbursements would be made through EDI.    
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