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Drawback rates for leather, garments rationalised

The government on Friday rationalised duty drawback rates further for items including leather, readymade garments and writing instruments, by introducing different rates instead of a single rate.

The revised Drawback Rate Schedule will be effective from June 7, the finance ministry said in a notification.

The duty drawback compensates exporter for Customs and Central Excise Duties suffered on inputs.

"Generic entries, especially relating to readymade garments, leather articles and writing instruments have been rationalised by splitting them into specific categories," it said.

So far, generic entries had a single rate with a broad drawback cap, it said adding that these entries had been split and made specific on the basis of data furnished by Apparel Promotion Council and other sources.

Entries pertaining to leather bags, valets, purses, shoes, boots and sandals had also been rationalised on the basis of recommendations made by Council for Leather Exports.

On the writing instruments, the single entry of all sorts have been split into five entries comprising plastic body ball pens, metal ball pens, micro tip pens, roller ball pens and marker pens.

New entries had been provided for dye intermediates, part of bicycles and capital goods, it said.

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