Govt hikes duty drawback on gold, silver jewellery

Duty drawback on gold and silver raised to Rs.252/ gram and Rs.3285/kg respectively.

The Dollar Business Bureau 

The Government has raised the All Industry Rates (AIR) of duty drawback on gold jewellery and silver jewellery to Rs.252.30 per gram and Rs.3285.40 a kg, respectively.

“The Central Government hereby makes the amendments in Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, and raises the certain AIRs of drawback for export of gold jewellery, silver jewellery and articles,” the Central Board of Excise and Customs (CBEC) said in a notification.

“The duty on articles of jewellery and parts thereof, made of gold has been increased to Rs.252.30 per gram and Rs.3285.40 per kg on articles of jewellery and parts thereof, made of silver,” the notification said.

The revised rates are applicable with effect from June 24, 2016, it said.

“Accordingly, it will be required by the exporter, who is claiming for these AIRs, to submit a declaration at the time of exports,” the notification said.

 “The specified drawback rate shall not be applicable to goods that are manufactured or exported without obtaining facility of CENVAT for any of the materials or services utilised in their manufacturing and without obtaining the duty rebate paid on inputs used in the manufacturing or processing,” it said.

Earlier, the AIR was fixed at Rs.209.3 per gram for gold jewellery and Rs.2790 per kg for silver jewellery.

These AIRs mainly take into consideration specific average parameters such as current prices of inputs, norms for input output, central excise and customs duty rates, imports share in input consumption, factoring of incidence of service tax paid on services that are used as material services in processing or manufacturing of export items, factoring incidence of duty on HSD/furnace oil, cost of export items, etc.

Duty drawback is the refund of duty on imported inputs for export products.

The Dollar Business Bureau - Jun 25, 2016 12:00 IST
 
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