The Committee constituted for formulation of All Industry Rates of Duty Drawback 2005-06 submitted its Final Supplementary Report on 3.10.2005, recommending changes in drawback rates, caps and insertion of new entries after having extensive consultations with the various stake holders.
The Government has accepted the recommendations of the Committee and a notification {No.102/2005-Cus(N.T.)} issued, here to implement the changes recommended. The changes shall come into force w.e.f. 21st November, 2005.
In pursuance of the recommendations of the Committee, the drawback rates have been increased on compete bicycle from 8 percent to 10.5 percent, on gaskets from 4 percent to 7 percent and on refined copper from 4.5 percent to 5 percent. Likewise, drawback rates have been increased on imitation zari, bicycle parts, forgings and various types of hand tools.
To encourage export of value added products drawback caps have been increased on grey cotton yarn of less than 60- counts from Rs. 5/- per kg to Rs.7/- per kg, on woven women's blouses of cotton from Rs.19/- per piece to Rs.28/- per piece and on crank shaft (for four wheelers) from Rs.9.70/- per kg to Rs.17/- per kg. Likewise, the drawback caps have also been increased for various textile items including cotton yarn, acrylic yarn, fabrics, apparel and made ups, writing instruments and sports goods.
New tariff items have been introduced in the Drawback Schedule for fishing nets, denim fabrics, lungis, real madras handkerchief, and imitation zari.
Press Information Bureau Government of India
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