Circular No.ES/170/ 2016-17 November 14, 2016
To: Members of the Council
Sub: - Classification of combination or sets of salwar- kameez, dupatta set, Choli Ghagra etc, for the purpose of claiming drawback.
Dear Member,
This is to inform you that the Office of the Commissioner of Customs has issued Public Notice No. 45/2016 dated 10.11.2016 on the above subject.
In this connection, it is observed that Exporter/ CHA are wrongly claiming Drawback Sr. No. 620401 for the combination sets of salwar- kameez dupatta set, Choli ghagra (set) and Drawback Sr. No. 620301 for the combination or sets of Kurta Pyjama set, Dhoti Kurta set, Pathani suit, Sherwani set etc.
The description of goods defined under Tariff item 620401 is Suits. Chapter Note 3 appended to Chapter 62 of CTA 75 defines ‘suit’ as a set of garments composed of two or three pieces, made from identical fabric. In case of suits and ensembles, the shell fabric of the upper garment and the lower garment should be identical in term of (a) construction (b) colour and shade of the fabric (c)composition. The suit covers upper and lower part of the body. The upper part is called suit coat or suit jacket and lower part is trouser, short or skirt. Thus, the Salwar Kameez suit or Ghagra Choli or Lehenga- Choli set should not be classified as a suit. Kameez should be classified as dress under sub- residual heading 620403 and Salwar should be classified as trouser under subheading 620403.
The explanation of the heading 620301 and 620401 applies Mutatis Mutandis to the articles of the heading 610301 and 610401.
Members may kindly make note of the above.
Thanking you,
V. ANIL KUMAR
EXECUTIVE DIRECTOR
