Duty Drawback On Ball Pens Capped At Rs 1.50

The customs department has capped the duty drawback on a ball pen at Rs 1.50 per set, thereby putting an end to drawback abuse by pen exporters.

Since the value of ball pens can vary between Rs 2 to Rs 10,000, several exporters were overvaluing the per unit cost of the pen to claim higher drawback. A duty drawback of 15 per cent is applicable to ball pens. The drawback table defines a ball pen to be a ball pen of any sort.

A manufacturer could claim the value of his products to be Rs 300 against the actual value of Rs 150 and double the quantum of drawback due on that item, revenue department officials said.

 

Further, exporters were exporting gift sets, containing a ball pen, fountain pen and a key chain (or other combinations), and claiming drawback on all the three items, instead of just the ball pen. Revenue department officials clarified that exporters will now not be able to scale up the duty drawback due to them by including items other than ball pens in the gift set.