Commissioner flags off enlargement of drawback schedule

The Drawback Commissioner has launched a large exercise to get the data to enlarge the drawback schedule from the current number of 794 items to the level in the rival DEPB scheme which lists some 2018 products. A circular issued by the Drawback Commissioner on 7 January calls upon the formidable strength of 48 key field officers controlling chief commissioners and commissionerates to furnish the data on imports and domestic production prices for some 1800 key inputs going into export products. The list seems to be drawn from inputs listed in the 7000 input-output norms in the commerce ministryâ€™s policy. The drawback commissionerâ€™s goal is use this data to work out the customs and excise duty on the inputs going into the manufacture of the export product. The drawback rates will then be reflected in the enlarged schedule as a percentage respective export product after providing for standard value addition of 33% or so. The drawback commissioner has, for the first time, tried to use the vast data resources with the customs and excise field formations. Till now, the drawback exercises relied mainly on data furnished by the Export Promotion Councils did not bother to develop primary data. In fact, excellent product specific cost information is available in the large number of brand rates for specific export consignments. These too are rarely converted to all industry rates applicable to general exports. The exporters are on cloud nine with the introduction of competition policy in the Government policy and the possible return of DEPB rates in the drawback schedule. The turf war between the commerce and the finance ministries has introduced the scientific element in export benefits. Once the exports are made truly free of duty, India can compete with any country in the world as it is not short on resources and is more than competitive in every aspect, specially with the opening up of the import window which allows import otherwise scarce raw materials like zinc and copper duty free. Meanwhile, the revised DEPB rates for the textiles sector by Public Notice of 39 dated 30 December 2004 are said to be in replacement of the previous rates and are not in addition to the rates earlier schedule. The Public Notice covers cotton, man-made and silk fibres. However, it does not provide for textiles of other material like wool and jute. Lead Acid Batteries: The anti-dumping duty on lead acid batteries from China, Japan, Korea and Bangladesh was withdrawn on 4 January. The duty was first slapped on 2 January 2002 and was valid for five years. The review of the impost started on 18 March 2004 following threats from Bangladesh to take India to WTO. The Ministry of Commerce completed the review on 26 October, 2004 and found that Japan had stopped dumping while Bangladesh did not export during the investigation period. At the end of the day, the anti-dumping duty is gone but there is no refund of duties for the three years burden suffered by the users of lead acid batteries. Indo-Pak Trade: The problem of pile up goods at Amritsar has multiplying several fold. Trucks laden down with cargo of tyres are waiting at the railway booking office for more than a month now but the authorities are not accepting the cargo even as the godowns have free space. The outward movement to Pakistan through the Attari/Wagah border post is very slow, the availability of Pak origin wagons is the bottleneck in the smooth movement. The twice weekly movement between two countries by Samjhauta Express and the two rakes once a month are inadequate to clear the back log. On top of this, the railways give priority to low value perishables like ginger and fresh vegetables along with soyameal and sugar while high value goods like tyres and books are low priority. There is no progress in opening up other points of entry into Pakistan or use of road transport for Indo-Pak Trade on the lines of the Petrapole-Benapole border crossing between India and Bangladesh. An action oriented programme at the level of the Commerce Minister in association with Railways and External Affairs Ministry is required to remove the bottleneck in the smooth flow of goods in the course of international trade as envisaged by SAPTA and also WTO. Agro Exports: The DGFT has notified agro export items totaling to Rs 5,000 crores annual export value eligible for duty credit scrip equivalent to 5% of fob value of exports under Vishesh Krishi Upaj Yojana (VKUY) on 04 January 2005. A new scheme which was announced by Kamal Nath to be effective from 1st April, 2005, as part of the special focus initiative for agriculture in the Foreign Trade Policy announced in August, 2004. The export items eligible for these benefits include Cut Flowers, Vegetables, cashew, mango, grapes, Spices and Minor Forest Product. The export of Tea & Coffee is excluded. The duty credit can be used for import of any item in agro chapters 1 to 24 with duty of more than 30%, Pepper, Tea, Coffee, Oil Seeds cannot be imported against these Scrips. Natural Rubber has been excluded from the import list against these Scrips. Edible oil is, however allowed and the 65% duty on the item will be the main target of the scrip. The STC/MMTC canalization provision on edible oil too was lifted within a day to give a market to the scrip. Seconds and Defectives: The Department of Revenue has issued a notification on 31 December 2004 to reduce the basic customs duty on steel seconds and defectives falling in Chapter 72 (Headings 7203 to 7229) to 20% from 40%. The items now attract a total duty of 35.38176 (20% basic, 12% countervailing duty and 2% education cess). Other steel items attract a basic duty of 15%. A notification to this effect was issued on 31 December 2004. The users seem to have got a hearing from the producer dominated steel ministry after a long time. Academy of Business studies

Commissioner flags off enlargement of drawback schedule

The Drawback Commissioner has launched a large exercise to get the data to enlarge the drawback schedule from the current number of 794 items to the level in the rival DEPB scheme which lists some 2018 products.

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