Export of carpet under duty drawback-examination of carpets for composition, price determination, etc Custom Circular No. 10/2017

Export of carpet under duty drawback-examination of carpets for composition, price determination, etc 

Circular No. 10/2017-Cus

F. No. 609/24/2017-DBK
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Drawback Division

New Delhi, dated the  30th March, 2017

To
All Principal Chief Commissioners of Customs/Customs (Prev)/Customs & Central Excise,
All Chief Commissioners of Customs/Customs (Prev)/Customs & Central Excise,
All Principal Commissioners  of Customs/Customs  (Prev)/Customs  & Central Excise
All Commissioners of Customs/Customs(Prev)/Customs & Central Excise

Subject: Export of carpet under duty drawback – examination of carpets for composition, price determination, etc.

Madam/Sir,

Attention is invited to Board’s Circular no. 69/2000-Cus dated 28.8.2000 providing that for fool-proof and expeditious examination and speedier disbursal  of drawback on carpets, the field formations may constitute expert panels consisting of textile experts drawn from the Department and from the Export Promotion Council/Trade. In this connection, Directorate General of Export Promotion (DGEP) vide instruction no. DGEP/SEZ/40/2015 dated 16.10.15 had stressed that market enquiry should be completed by field formations within  fifteen  days failing which export benefits to the exporters should be  released. It was  also  desired  that post-facto action may be taken based on results  of  enquiry  and  export  benefits  be  held beyond  15 days only with  the  written  approval of the Commissioner. In any  case  exports  should not  be stopped in terms of Board’s Circular no. 1/2011-Cus dated 4.1.2011. DGEP vide letter F. No. DGEP/SEZ/40/2015 dated 21.1.2016 (copy enclosed) had also provided a list  of members of Carpet Export Promotion Council (CEPC) whose assistance can be taken when Customs officials are  unable  to  ascertain the exact  composition  and actual value of the  carpets.

2. It has been brought to the notice of Board  by  Ministry  of  Textiles  and  CEPC  that  in some  cases,  Customs field  formations had caused damage to the carpets during examination/inspection of export consignments. This has resulted in loss of export order as well as financial loss to exporters.

3. In this context, care must be taken to ensure that export products including carpets should not be damaged or destroyed or cut for taking samples, conducting market enquiry or otherwise.

4. Further, for speedy conduct of enquiry about composition , value,  etc. of  carpets, besides the nominated members of CEPC, office of Textiles Committee,  Mumbai  may  be  contacted where two experts have been posted by the Development Commissioner (Handicrafts)  for attending to all work  related  to  evaluation  of  carpets  and to sort  out  the  cases  being referred to the Textiles Committee, Mumbai by the Customs authorities.

5. Suitable Public Notice and Standing Order should be issued for  guidance  of  the  trade and officers. Any  difficulty  faced  should be  intimated  to the Board.

Yours faithfully,

(Dipin Singla)
Senior Technical Officer (Drawback)