Drawback Rates For 29 Categories Revised

The finance ministry has revised upwards the duty drawback rates and caps on certain textile products, leather items and perfumed agarbattis. The upward revision spans about 29 categories of items and is aimed to boost exports.

In the case of leather sandals where the Cenvat facility is not availed of by the exporters, the revised drawback rate stands at 10 per cent of the f.o.b value, the cap on value being pegged at Rs 38 per pair. For perfumed agarbattis, the revised rate is 14.5 per cent of the f.o.b, the cap being Rs 25 per kg.

According to a finance minister press statement, the products where the rates have been revised upwards include cotton fabrics, man-made fibre/ filament fabrics, carpets and silk garments.

 

Leather articles manufactured from duty-free finished leather have also been included in the drawback table to boost their exports. A few entries have been created in the drawback table for leather manufactured out of duty free finished leather to facilitate their exports, the release said.

The revised drawback rates for leather ranged from four to 10 per cent. The statement added that a single broad-banded entry has been formulated to give a fillip to the writing instruments sector.

The release said a single broad-banded entry has been formulated for writing instrument industry to give a fillip to their exports. Writing instuments like fountain pen will now get a duty drawback of 18 per cent.

Duty drawback is an export incentive in which exporters are reimbursed the customs and excise duties paid on raw materials and intermediaries to provide competitive edge.