Customs on export

This query is : Resolved

CA Priya (Querist)
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03 August 2011 Hello sir/mam,
My client purchases cotton fabrics and stich it as pillow covers and export to sweden....... Is he liable to pay Customs Duty or is any exemption exist?????? He has received duty draw back at the rate in draw back schedule under item No.5209......
Am confused bec his books does not show any duty paid and as per Sec 74 to 76 Drawback is only on Imported goods used or resold or any ED paid in manufacture na???????? Kindly clarify........

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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04 August 2011 SECTION 75. Drawback on imported materials used in the manufacture of goods which are exported. – (1) Where it appears to the Central Government that in respect of goods of any class or description [manufactured, processed or on which any operation has been carried out in India] [, being goods which have been entered for export and in respect of which an order permitting the clearance and loading thereof for exportation has been made under section 51 by the proper officer,] [or being goods entered for export by post under section 82 and in respect of which an order permitting clearance for exportation has been made by the proper officer], a drawback should be allowed of duties of customs chargeable under this Act on any imported materials of a class or description used in the [manufacture or processing of such goods or carrying out any operation on such goods], the Central Government may, by notification in the Official Gazette, direct that drawback shall be allowed in respect of such goods in accordance with, and subject to, the rules made under sub-section (2).

IN VIEW OF ABOVE,
EXPORTER CAN TAKE THE BENEFIT OF EXPORTED GOODS.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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04 August 2011 I agree with the expert

CA Priya

CA Priya (Querist)
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04 August 2011 Oh fine..... Then if i export the goods which are covered under the schedule i get drawback in the rate prescribed..... And i wont be required to pay any duty rather i get draw back....... Fine......... Thanks a lot sir....... Thanks for both of u to spend yr time to read my query and reply........

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