ANNOUNCEMENT 22 Jan 2018

The Indian Ministry of Finance amended the rebate rates under the Duty Drawback Scheme for several products.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 25 Jan 2018 | Removal date: open ended
Still in force

Tax-based export incentive

On 22 January 2018, the Ministry of Finance has through Notification 8/2018-Customs amended the drawback rates under the Duty Drawback Scheme on the items listed below. The Duty Drawback Scheme provides rebates of duties paid on imports or local purchase of articles that are used to manufacture export products.

  • Chilled/frozen fish, fish fillets, mollusses, invertebrates and extracts & juices of fish or crustaceans from 0.4% and a cap of INR 2.1 to 2.1% and a cap of INR 10.9
  • Frozen Shrimps/prawns, prepared or preserved, from 0.8% and a cap of INR 6.4 to 2.7% and a cap of INR 21.6
  • Accelerated Freeze Dried shrimps/prawns, prepared or preserved, from 0.4% and a cap of INR 10.9 to 2.1% and a cap of INR 57.2
  • Lobsters and crabs, prepared or preserved, from 0.4% and a cap of INR 4 to 2.4% and a cap of INR 24
  • Pasteurised tinned chilled crab meat, prepared or preserved, from 0.8% and a cap of INR 13.8 to 2.7% and a cap of INR 46.6
  • Other crustaceans, molluses or invertebrates in chilled or frozen form, prepared or preserved, 0.4% and a cap of INR 2.1 to 2.1% and a cap of INR 10.9
  • Plastic belts from 1.5% to 1.9%, no change in cap (HS 3926.03)
  • Automobile tyres from 2.6% and a cap of INR 7 per kg. to 3.6% and a cap of INR 12.2 per kg.
  • Bicycle/cycle-rickshaw tyres from 2% and a cap of INR 7 per kg. to 5.75% and a cap of INR 11.5 per kg.
  • Other pneumatic tyres from 2% and a cap of INR 5.4 per kg. to 3.6% and a cap of INR 8.5 per kg.
  • Bicycle tubes from 2.6% and a cap of INR 7.7 per kg to 5.4% and a cap of INR 12.3 per kg.
  • Other inner tubes from 2% and a cap of INR 5.9 per kg. to 3.6% and a cap of INR 7.9 per kg.
  • Finished leather of bovine animals, sheep, lamb or goat and chamois leather from 1.2% and a cap of INR 2.1 per sq. ft. to 2.36% and a cap of INR 4.3 per sq. ft.
  • Lining leather of bovine animals, sheep, lamb or goat from 1.2% and a cap of INR 1.8 per sq. ft. to 2.36% and a cap of INR 2.6 per sq. ft.
  • Leather harness from 1.6% and a cap of INR 32.2 per piece to 2.2% and a cap of INR 48.1 per piece
  • Leather saddle from 1.4% and a cap of INR 93.8 per piece to 1.6% and a cap of INR 256.9 per piece
  • Leather trunks/suitcases/bags from 1.5% and a cap of INR 97 per piece to 2.4% and a cap of INR 128.5 per piece
  • Leather woven/braided handbags from 1.5% and a cap of INR 65.9 to 2.4% and a cap of INR 87.9 per piece
  • Other leather handbags from 1.5% and a cap of INR 54.9 per piece to 2.4% and a cap of INR 77.1 per piece
  • Leather articles carried in pocket or handbags and other cases/bags of leather from 1.5% and a cap of INR 12.8 to 2% and a cap of INR 17 per piece
  • Leather articles of apparel from 2.4% and a cap of INR 222.7 per piece to 2.9% and a cap of INR 230.2 per piece
  • Articles of apparel of leather and other materials from 2.4% and a cap of INR 122.7 to 2.9% and a cap of INR 193.3 per piece
  • Leather gloves for industry use from 1.8% to 3.5% per pair, no change in absolute cap of INR 6.6 per pair
  • Leather belts from 1.9% and a cap of INR 11.2 to 1.9% and a cap of INR 15.8 per piece
  • Carded wool yarn - grey and weaving quality from 4% and a cap of INR 62.6 per kg. to 5.1% and a cap of INR 118 per kg., dyed and weaving quality from 4% and a cap of INR 64.8 to 4.9% and a cap of INR 119 per kg., grey and hosiery/knitting quality from 4% to 5.1%, dyed and hosiery/knitting quality from 4% to 4.9%, grey wollen-MMF blended yarn from 4% to 5.1%, dyed wollen-MMF blended yarn from 4% to 4.9%, other grey carded wool yarn from 4% to 5.1%, and other dyed carded wool yarn from 4% and INR 27.6 per kg to 4.9% and a cap of INR 40.7 per kg.
  • Combed wool yarn - grey and weaving quality from 4% and a cap of INR 62.6 per kg. to 5.1% and a cap of INR 118 per kg., dyed and weaving quality from 4% and a cap of INR 64.8 to 4.9% and a cap of INR 119 per kg., grey and hosiery/knitting quality from 4% to 5.1%, dyed and hosiery/knitting quality from 4% and a cap of INR 40.7 to 4.9% and a cap of INR 73.9 per kg., grey wollen-MMF blended yarn from 4% and a cap of INR 43 to 5.1% and a cap of INR 51.2 per kg, dyed wollen-MMF blended yarn from 4% and a cap of INR 44.8 to 4.9% and a cap of INR 63.2 per kg., other grey combed wool yarn from 4% to 5.1%, and other dyed combed wool yarn from 4% and INR 27.6 per kg to 4.9% and a cap of INR 35.4 per kg.
  • Grey yarn of animal hair from 4% to 5.1% and dyed yarn from 4% to 4.9%
  • Gery yarn of wool of animal hair for retail sale from 4% to 5.1% and dyed yarn from 4% and a cap of INR 44.8 to 4.9% and a cap of INR 89.1 per kg.
  • Yarn of coarse animal hair or horsehair - grey from 4% to 5.1% and dyed from 4% to 4.9%
  • Woven fabric of carded wool or carded fine animal hair - grey and containing more than 85% wool/hair from 3.2% to 5%, dyed and containing more than 85% wool/hair from 3.2% and a cap of INR 72 per kg. to 5.5% and a cap of INR 150.1 per kg., other grey fabrics from 2.7% to 4%, and other dyed fabrics from 2.7% and a cap of INR 49.7 to 4.5% and a cap of INR 86.2 per kg.
  • Woven fabric of combed wool or combed fine animal hair - grey and containing more than 85% wool/hair from 3.2% to 5%, dyed and containing more than 85% wool/hair from 3.2% and a cap of INR 72 per kg. to 5.5% and a cap of INR 150.1 per kg., other grey fabrics from 2.7% to 4%, and other dyed fabrics from 2.7% and a cap of INR 49.7 to 4.5% and a cap of INR 86.2 per kg.
  • Dyed woven fabrics of synthetic staple fibre and at least 25% wool from 3.3% and a cap of INR 48 to 4.5% and a cap of INR79 per kg.
  • Wadding, felt, nonwovens, and gimped/chenille/loop-wale yarn of wool from 4% and a cap of INR 62.6 to 5.1% and a cap of INR 118 per kg.
  • Fishing nets of man-made materials other than nylon from 2.8% and a cap of INR 16 per kg. to 3.2% and a cap of INR 17 per kg.
  • Wool woven pile and chenille fabrics from 3.2% and a cap of INR 72 to 5.5% and a cap of INR 150.1 per kg.
  • Knitted or crocheted fabrics of wool under HS 6001 to HS 6006 from 3.2% to 5%
  • Leather boots/half-boots for adults from 2.6% and a cap of INR 84.8 to 2.9% and a cap of INR 94.5 per pair, other leather shoes for adults from 2.6% to 2.9%, leather shoes for children from 2.6% and a cap of INR 37.8 to 2.9% and a cap of INR 50.9 per pair, leather sandals from 2.6% to 2.9%, safety footwear with metal toe cap from 2.6% to 3.5% and safety footwear with toecap of other materials from 2.9% to 3.2%
  • Leather uppers used in - Leather boots/half-boots for adults from 2.2% and a cap of INR 44.5 to 2.4% and a cap of INR 47.9 per pair, other leather shoes for adults from 2.2% and a cap of INR 30.5 to 2.4% and a cap of INR 32 per pair, leather shoes for children from 2.2% to 2.4%, leather sandals from 1.7% and a cap of INR 13.7 to 1.8% and a cap of INR 17.4 per pair, woven sandals from 1.7% and a cap of INR 9.9 to 1.8% and a cap of INR 24.1 per pair
  • Leather soles from 1.7% and a cap of INR 6.1 to 1.8% and a cap of INR 6.3 per pair
  • Leather gaiters/chaps and leather cum synthetic/textile footwear uppers from 1.7% and a cap of INR 9.9 to 1.8% and a cap of INR 24.1 per pair
  • Glass Artware/Handicrafts from 1.5% and a cap of INR 13.2 to 2.2% and a cap of INR 18.9 per kg
  • Glass Artware/Handicrafts made of two or more ply glass with or without metallic fusion from 1.5% and a cap of INR 14.8 to 2.2% and a cap of INR 22.1 per kg
  • Glass Refills Silver Coated for Vacuum Flasks from 1.5% and a cap of INR 4.4 to 3.8% and a cap of INR 9 per kg.
  • Glass Artware/Handicrafts with silver coating from 1.5% and a cap of INR 14.8 to 3.2% and a cap of INR 17.6 per kg.
  • Glass Artware/Handicrafts with glass chatons from 1.5% and a cap of INR 14.8 to 2.2% and a cap of INR 22.1 per kg.
  • Single speed bicycles from 2% and a cap of INR 89 to 2.6% and a cap of INR 116 per piece
  • Multi-speed bicycle from 7% and a cap of INR 482.8 to 7.8% and a cap of INR 586 per piece
  • Mountain terrain bicycles from 7% and a cap of INR 362.1 to 8% and a cap of INR 406
  • Delivery tricycles/cycle rickshaw from 2% and a cap of INR 89 to 2.6% and a cap of INR 116 per piece
  • Sports nets of man-made materials other than nylon from 2.8% and a cap of INR 16 to 3.2% and a cap of INR 17