No.

EPCH/DBK-RATES/2023-24 October 20, 2023

CIRCULAR
To,

All Members

SUB: ANNOUNCEMENT OF ALL INDUSTRY RATES OF DUTY DRAWBACK-reg

Dear Members,

The new All Industry Rate of Duty Drawback for 2023 for various export products
including handicrafts have been announced by the Department of Revenue vide its
Customs NOTIFICATION No.77/2023-CUSTOMS (N.T.), MADE EFFECTIVE FROM 30th
OCTOBER 2023 AS AMENDED.

As per the Department of Revenue, the Drawback Committee has marginally

increased rates in some of the handicraft items or have retained the same rates as
earlier. In case of Zari & Zari artware, rates have been increased from 8.6% (Value
Cap Rs. 1150.6) to 8.9% (Value Cap Rs. 1307.7) and for Papier Machie products, the
rates have been enhanced from 1.7% to 2.2%. Further, a new entry for stone artware
/ handicrafts items has been created with rate of 2.2%. For products like brass
artware/copper artware, there is an increase in value cap.

The DBK code-wise list of handicrafts items with drawback rates is available at
https://epch.in/policies/DBK_Circular.pdf.

With regards,

[R. K. VERMA]
EXECUTIVE DIRECTOR
 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

Notification No. 77/2020-CUSTOMS (N.T.)

New Delhi, the 20th October, 2023

G.S.R. (E). – In exercise of the powers conferred by sub-section (2) of section 75 of the
Customs Act, 1962 (52 of 1962) and sub-section (2) of section 37 of the Central Excise
Act, 1944 (1 of 1944), read with rules 3 and 4 of the Customs and Central Excise Duties
Drawback Rules, 2017 (hereinafter referred to as the said rules) and in supersession of
the notification of the Government of India in the Ministry of Finance (Department of
Revenue) No. 07/2020-Customs (N.T.) dated the 28th January, 2020 published vide
number G.S.R. 55(E), dated the 28th January, 2020, except as respect to things done or
omitted to be done before such supersession, the Central Government hereby
determines the rates of drawback as specified in the Schedule annexed hereto
(hereinafter referred to as the said Schedule) subject to the following notes and
conditions, namely :-

Notes and conditions –

(1) The tariff items and descriptions of goods in the said Schedule are aligned with
the tariff items and descriptions of goods in the First Schedule to the Customs Tariff Act,
1975 (51 of 1975) at the four-digit level only. The descriptions of goods given at the six
digit or eight digits in the said Schedule are in several cases not aligned with the
descriptions of goods given in the First Schedule to the Customs Tariff Act, 1975.

(2) The general rules for the interpretation of the First Schedule to the Customs
Tariff Act, 1975 shall, mutatis mutandis, apply for classifying the export goods listed in
the said Schedule.

(3) Notwithstanding anything contained in the said Schedule, -

(i) all art-ware or handicraft items shall be classified under the heading of art-
ware or handicraft (of constituent material) as mentioned in the relevant
Chapters;

(ii) any identifiable ready to use machined part or component predominantly

made of iron, steel or aluminium, made through casting or forging process,
and not specifically mentioned at six digit level or more in Chapter 84 or 85
or 87, except those classifiable under heading 8432 or 8433 or 8436, may
be classified under the relevant tariff item (depending upon material
composition and making process) under heading 8487 or 8548 or 8708, as
the case may be, irrespective of classification of such part or component at
four digit level in Chapter 84 or 85 or 87 of the said Schedule;
 (iii) the sports gloves mentioned below heading 4203 or 6116 or 6216 shall be
classified in that heading and all other sports gloves shall be classified
under heading 9506.

(4) The figures shown in column (4) in the said Schedule refer to the rate of
drawback expressed as a percentage of the free on board value or the rate per unit
quantity of the export goods, as the case may be.

(5) The figures shown in column (5) in the said Schedule refer to the maximum
amount of drawback that can be availed of per unit specified in column (3).

(6) An export product accompanied with a tax invoice and forming part of project
export (including turnkey export or supplies) for which no figure is shown in column (5)
in the said Schedule, shall be so declared by the exporter and the maximum amount of
drawback that can be availed under the said Schedule shall not exceed the amount
calculated by applying ad-valorem rate of drawback shown in column (4) to one and half
times the tax invoice value.

(7) The rates of drawback specified against the various tariff items in the said
Schedule in specific terms or on ad valorem basis, unless otherwise specifically provided,
are inclusive of drawback for packing materials used, if any.

(8) Drawback at the rates specified in the said Schedule shall be applicable only if
the procedural requirements for claiming drawback as specified in rule 12, 13 and 14 of
the said rules, unless otherwise relaxed by the competent authority, are satisfied.

(9) The rates of drawback specified in the said Schedule shall not be applicable to
export of a commodity or product if such commodity or product is, -

(i) manufactured partly or wholly in a warehouse under section 65 of the

Customs Act, 1962 (52 of 1962);
(ii) manufactured or exported in discharge of export obligation against an
Advance Authorisation or Duty-Free Import Authorisation issued under the
Duty Exemption Scheme of the relevant Foreign Trade Policy:

Provided that where exports are made against Special Advance

Authorisation issued under paragraph 4.04A of the Foreign Trade Policy
2015-20 or Foreign Trade Policy 2023 in discharge of export obligations in
terms of Notification No. 45/2016-Customs, dated 13th August, 2016 or
Notification No. 27/2023-Customs, dated 1st April, 2023, the rates of
drawback specified in the said Schedule shall apply as if in the said
Schedule, the entries in columns (4) and (5) against the Tariff items in the
said Schedule below all Chapters, except Chapter 61 and 62, are NIL, and
those in Chapters 61 and 62 are as specified in the Table annexed hereto;

(iii) manufactured or exported by a unit licensed as hundred per cent Export

Oriented Unit in terms of the provisions of the relevant Foreign Trade
Policy;
 (iv) manufactured or exported by any of the units situated in Free Trade Zones
or Export Processing Zones or Special Economic Zones;

(v) manufactured or exported availing the benefit of the notification No.

32/1997-Customs, dated 1st April, 1997.

(10) Whenever a composite article is exported for which any specific rate has not
been provided in the said Schedule, the rates of drawback applicable to various
constituent materials can be extended to the composite article according to net content
of such materials on the basis of a self-declaration to be furnished by the exporter to
this effect and in case of doubt or where there is any information contrary to the
declarations, the proper officer of customs shall cause a verification of such
declarations.

(11) The term ‘articles of leather’ in Chapter 42 of the said Schedule shall mean any
article wherein (a) 60% or more of the outer visible surface area; or (b) 60% or more of
the outer and inner surface area taken together, excluding shoulder straps or handles or
fur skin trimming, if any, is of leather notwithstanding that such article is made of
leather and any other material.

(12) The term “dyed”, wherever used in the said Schedule in relation to textile
materials, shall include yarn or piece dyed or predominantly printed or coloured in the
body.

(13) The term “dyed” in relation to fabrics and yarn of cotton, shall include “bleached
or mercerised or printed or melange”.

(14) The term “dyed” in relation to textile materials in Chapters 54 and 55 shall
include “printed or bleached or melange”.

(15) In respect of the tariff items in Chapters 60, 61, 62 and 63 of the said Schedule,
the blend containing cotton and man-made fibre shall mean that content of man-made
fibre in it shall be more than 15% but less than 85% by weight and the blend containing
wool and man-made fibre shall mean that content of man-made fibre in it shall be more
than 15% but less than 85% by weight. The garment or made-up of cotton or wool or
man-made fibre or silk shall mean that the content in it of the respective fibre is 85% or
more by weight.

(16) The term “shirts” in relation to Chapters 61 and 62 of the said Schedule shall
include “shirts with hood”.

(17) In respect of the tariff items appearing in Chapter 64 of the said Schedule, leather
shoes, boots or half boots for adult shall comprise the following sizes, namely : -

(a) French point or Paris point or Continental Size above 33;

(b) English or UK adult size 1 and above; and
(c) American or USA adult size 1 and above.
(18) In respect of the tariff items appearing in Chapter 64 of the said Schedule,
leather shoes, boots or half boots for children shall comprise the following sizes, namely
:-
(a) French point or Paris point or Continental Size upto 33;
(b) English or UK children size upto 13; and
(c) American or USA children size upto 13.

(19) The drawback rates specified in the said Schedule against tariff items 711301,
711302 and 711401 shall apply only to goods exported by airfreight, post parcel or
authorised courier through the Custom Houses as specified in para 4.71 of the Hand
Book of Procedures, 2023 published vide Public Notice No. 1/2023, dated the 1st April,
2023 of the Government of India in the Ministry of Commerce and Industry, after
examination by the Customs Appraiser or Superintendent to ascertain the quality of
gold or silver and the quantity of net content of gold or silver in the gold jewellery or
silver jewellery or silver articles. The free on board value of any consignment through
authorised courier shall not exceed rupees twenty lakhs.

(20) The drawback rates specified in the said Schedule against tariff items 711301,
711302 and 711401 shall not be applicable to goods manufactured or exported in
discharge of export obligation against any Scheme of the relevant Foreign Trade Policy
of the Government of India which provides for duty free import or replenishment or
procurement from local sources of gold or silver.

(21) “Vehicles” of Chapter 87 of the said Schedule shall comprise completely built
unit or completely knocked down (CKD) unit or semi knocked down (SKD) unit.

2. All claims for duty drawback at the rates of drawback notified herein shall be
filed with reference to the tariff items and descriptions of goods shown in columns (1)
and (2) of the said Schedule respectively. Where, in respect of the export product, the
rate of drawback specified in the said Schedule is Nil or is not applicable, the rate of
drawback may be fixed, on an application by an individual manufacturer or exporter in
accordance with the said rules. Where the claim for duty drawback is filed with
reference to tariff item of the said Schedule and it is for the rate of drawback specified
herein, an application, as referred under sub-rule (1) of rule 7 of the said rules shall not
be admissible.

3. The amount referred in sub-rule (3) of rule 7 of the said rules, relating to
provisional drawback amount as may be specified by the Central Government, shall be
equivalent to the drawback rate and drawback cap shown in column (4) and (5) in the
said Schedule for the tariff item corresponding to the export goods, if applicable, and
determined as if it were a claim for duty drawback filed with reference to such rate and
cap.

4. This notification shall come into force on the 30th day of October, 2023.
 EXTRACTS OF NEW DRAWBACK RATES TAKEN FROM CBEC WEBSITE
https://www.cbic.gov.in/entities/customs NOTIFIED BY DEPARTMENT OF REVENUE,
MINISTRY OF FINANCE, GOVT. OF INDIA VIDE NOTIFICATION No.77/2023-CUSTOMS (N.T.),
MADE EFFECTIVE FROM 30TH OCTOBER 2023 AS AMENDED.

New drawback rates

w.e.f. 30.10.2023

Unit Drawback Drawback

Tariff Item Description of goods Rate cap per
unit in Rs.
1 2 3 4 5

Pre-shave, shaving or after shave preparations,

personal deodorants, bath preparations,
depilatories and other perfumery, cosmetic or
3307 toilet preparations, not elsewhere specified or
included, prepared room deodorizers, whether
or not perfumed or having disinfectant
properties
Perfumed Agarbatti / Incence Sticks / Dhoop / Kg. 3.9% 27.9
330701
Loban
330799 Others 1.2%
4414 Wooden frames for paintings, photographs, 1.9%
mirrors or similar objects
4419 Tableware and kitchenware, of wood 1.9%
4420 Wood marquetry and inlaid wood; caskets and 1.9%
cases for jewellery or cutlery, and similar articles,
of wood; statuettes and other ornaments, of
wood; wooden articles of furniture not falling in
chapter 94
4421 Other articles of wood
442101 Handicrafts / Artware of wood 1.9%
442199 Others 1.2%
Other paper, paperboard, cellulose wadding
4823 and webs of cellulose fibres, cut to size or
shape; other article of paper pulp, paper,
paperboard, cellulose wadding or webs of
cellulose fibres
Decorative handicraft articles made of papier Kg 2.2% 18.4
482302
machie
482399 Others 1.2%
Metallised yarn, whether or not gimped, being 1.5%
textile yarn, or strip or the like of heading 5404
5605
or 5405, combined with metal in the form of
thread, strip or powder or covered with metal
Tulles and other net fabrics, not including Kg 2.0% 24.0
woven, knitted or crocheted fabrics; lace in the
5804
piece, in strips or in motifs, other than fabrics of
heading 6002 to 6006
Hand-woven tapestries of the type gobelins, Kg 2.0% 24.0
5805
flanders, aubusson, beauvais and the like, and
 needle-worked tapestries (for example, petit
point, cross-stitch), whether or not made up
Braids in the piece; ornamental trimmings in the Kg 2.0% 24.0
piece, without embroidery, other than knitted
5808
or crocheted; tassels, pompons and similar
articles
Woven fabrics of metal thread and woven 1.5%
fabrics of metallised yarn of heading 56 05, of
5809 a kind used in apparel, as furnishing fabrics or
for similar purposes, not elsewhere specified or
included
5810 Embroidery in the piece, in strips or in motifs
Per Kg. 8.9% 1307.7
581001 Of Silk of Silk
Content
581099 Others 1.3%
Quilted textile products in the piece, composed Kg 2.0% 24.0
of one or more layers of textile materials
5811 assembled with padding by stitching or
otherwise, other than embroidery of heading
5810
5905 Textiles wall coverings
590501 Of MMF Kg 2.8% 21.8
590599 Of cotton and others Kg 2.0% 24.0
Worked monumental or building stone (except
slate) and articles thereof, other than goods of
heading 6801; mosaic cubes and the like, of
6802
natural stone (including slate), whether or not on
a backing; artificially coloured granules, chippings
and powder, of natural stone (including slate)
Other Artistic and Decorative crafted stone 1%
680204
products (Handicraft)
Artistic & Decorative crafted product of Marble Kg 2.2% 13
680205
(Handicrafts)
Articles of stone or of other mineral substances 1%
(including carbon fibres, articles of carbon fibres
6815
and articles of peat), not elsewhere specified or
included

7013 Glassware of a kind used for table, kitchen,

toilet, office, indoor decoration or similar
purposes (other than that of heading 7010 or
7018)
701301 Hand cut lead crystal Glass ware 1.2%
701302 Opal Glassware/Kitcheware 1.2%
Jars, perfume bottle, candle 1.2%
Plate/ coasters, votive, lotion
701303
bottle/soap dish, ornamental
spheres/stars/bells
7020 Others articles of Glass
702001 Glass Artware / Handicrafts Kg 3.2% 29.6
 Glass Artware / Handicrafts made of two or more Kg 2.3% 24
702002
ply glass with or without metallic fusion
702004 Glass Artware / Handicrafts with silver coating Kg 3.3% 24
702005 Glass Artware / Handicrafts with glass chatons Kg 2.3% 24
702006 Glass artware/ handicrafts with LED Kg 4.8% 34.9
702099 Others 1.2%
7117 Imitation Jewellery
711701 Brass Jewellery 1.3%
711702 Aluminium Jewellery 1.3%
711703 Plastic Imitation Jewellery With or Without 1.3%
embellishments
711704 Plastic Bangles with or without embellishments 1.3%
711705 Stainless steel Jewellery 1.3%
711706 Iron Jewellery 1.3%
711707 Glass Jewellery 1.3%
7326 Other articles of Iron and Steel
Handicrafts / Artware of Cast Iron or Iron or steel, 1.7%
732601 with or without plating /coating /galvanizing/
brass
732602 Handicraft/Artware of stainless steel 1.7%
732699 Others 1.5%
741803 Electro plated nickel silver ware (EPNS) kg 2.2% 39.5
7419 Other articles of copper
741901 Artware / Handicrafts of Brass Kg 2.2% 63.6
741902 Artware / Handicrafts of Copper Kg 2.2% 60.8
Other articles of Brass, Kg 2.2% 39.5
741998
including bushes
Other articles of Copper, Kg 2.2% 49
741999
including bushes
7616 Other articles of Aluminium
761601 Aluminium Artware/ Handicrafts 1.7%
761699 Others 1.2%
Bells, gongs and the like, non-electric, of base
metal; statuettes and other ornaments, of base
8306
metal; photograph, picture or similar frames, of
base metal; mirrors of base metal
830601 Of brass and other copper alloys Kg 2.2% 80
830602 Of Copper Kg 2.2% 49
830603 Of Iron and Steel 1.7%
830604 Of Aluminium 1.4%
830699 Others 1.7%
Musical Instruments; parts and accessories of
92
such articles
Pianos, including automatic pianos; harpsi- 1.2%
9201
chords and other keyboard stringed instruments
 Other string musical instruments ( for example 1.2%
9202
guitars, violins, harps)
Wind musical instruments (for example, keyboard 1.2%
pipe organs, accordions, clarinets, trumpets,
9205
bagpipes) other than fairground organs and
mechanical street organs
Percussion musical instruments (for example, 1.2%
9206
drums, xylophones, cymbals, castanets, maracas)
Musical instruments, the sound of which is 1.2%
9207 produced, or must be amplified, electrically (for
example, organs, guitars, accordions)
9403 Other furniture and parts thereof
Predominantly of marble Piece 2.2% 236
940301
Others 1.2%
940399
Lamps and Lighting fittings including
searchlights and spotlights and parts thereof,
not elsewhere specified or included; illuminated
9405 signs , illuminated name-plates and the like,
having a permanently fixed light source, and
parts thereof not elsewhere specified or
included
940501 Of Brass Kg 2.2% 39.5
940502 Of Copper Kg 2.2% 49
940503 Of Wrought Iron 1.6%
940504 Of Aluminium 1.5%
940505 Of Glass Kg 4% 29.6
940506 Of Marble Piece 2.2% 192
940599 Others 1.2%
Video game consoles and machines, articles of
funfair, table or parlour games, including
9504
pintables, billiards, special tables for casino games
and automatic bowling alley equipment
1.4%
950401 Carrom Board, with or without coins and strikers
Festive, Carnival or other entertainment 1.2%
9505 articles, including conjuring tricks and novelty,
jokes