Circular No.ES/ 67 /2016-17 August 18, 2016
To: Members of the Council
Sub: Special Advance Authorisation Scheme for export of Articles of Apparel and Clothing Accessories. Amendments in FTP 2015-20.
Dear Member,
This is to inform you that DGFT has issued Notification No. 21/2015-2020 dated 11th August 2016. As per this notification, a new scheme called Special Advance Authorisation Scheme for export of Articles of Apparel and Clothing Accessories of Chapter 61 & 62 of ITC(HS) Classification has been introduced. This scheme shall come into force from 1st September 2016 wherein exporters are entitled for an authorisation for fabrics including inter lining on pre-import basis, and All Industry Rate of Duty Drawback for non-fabric inputs on the exports.
Under this Scheme, exporters shall be eligible for All Industry Rate of Duty Drawback, for non fabric inputs, as determined by Central Government for this scheme. For the purpose of value addition norm of para 4.08 of FTP, the value of any other input used on which benefit of Drawback is claimed or intended to be claimed shall be equal to 22% of the FOB value of export realised. Minimum value addition shall be as per para 4.09 of FTP. However, option to claim drawback determined and fixed by Central Excise Authority (brand rate) under Rule 7 of the Drawback Rules 1995 remains in which case the value of inputs (other than the fabric imported duty free under the Special Advance Authorization) continues to be based on actuals.
In view of the above scheme, CBEC has issued Notification No. 45/2016-Customs dated 13th August, 2016 by providing exemption to fabrics (including interlining) from import duty.
CBEC has also issued Notification No. 110/2016-Customs (NT) dated 13th August, 2016 by amending Notification No 110/2015-Customs (NT) dated 16th November, 2015 to specify All Industry Rates of drawback for export of garments under Special Advance Authorization Scheme under para 4.04A of FTP 2015-20.
Further, as per CBEC Circular No. 37/2016-Customs dated 13th August 2016, the CBEC's Systems Directorate is making all the necessary EDI related arrangements for implementation including specifying the appropriate new scheme code that would need to be declared by exporters making exports under the Special Advance Authorization Scheme cum AIR Drawback.
For more information on the above subject, you may download the given Notifications and Circulars.
Members are requested to make note of the above.
Thanking you,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
