Latest news with #SION
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Business Standard
26-05-2025
- Business
- Business Standard
Duty drawback on inputs used in export products shouldn't be denied
The standard input-output norms (SION) for our product are already fixed but they do not fully meet our requirements. So, we had applied for review of the norms under Para 4.06 of the HBP, which is still under consideration. Meanwhile, we have received an order for export of the same product. Can we now apply for advance authorisation under SION or under Para 4.07 of the HBP to meet our immediate requirement? Yes. There is no bar on applying for advance authorisation under SION or Para 4.07 of HBP while your request for review of the SION under Para 4.06 of the HBP is pending. We have obtained an advance authorisation under SION, which allows 4 inputs. We want to import only 3 of the inputs. We are holding duty paid stocks of the 4th input. We will make the export product using all the 4 inputs. Can we file DEEC-cum-Drawback shipping bill and adjust the exports against the export obligation and also claim the drawback of the duty paid on the 4th input? In my opinion, you can do that, because there is nothing in Section 75 of the Customs Act, 1975 or the Customs and Central Excise Duties Drawback Rules, 2017 to deny the drawback of the duty paid on the inputs except under specified circumstances. However, you better get the duty paid input removed from the advance authorisation because the CBEC Circular no.89/2003-Cus dated 6th October 2003 says that (relevant extracts) 'brand rates can be fixed for rebating duties on such inputs which do not figure in relevant Advance Licence/DEEC Book and which have been procured by exporters indigenously or through import under the cover of proper duty paying documents i.e. Central Excise invoices or bills of entries, as the case may be'. Also, you may take careful note of Para 4.15 of the FTP which says that 'drawback as per rate determined and fixed by Customs authority in terms of DoR Rules shall be available for duty paid imported or indigenous inputs (not specified in the norms) used in the export product. For this purpose, applicant shall indicate clearly details of duty paid input in the application for Advance Authorisation. As per details mentioned in the application, Regional Authority shall also clearly endorse details of such duty paid inputs in the condition sheet of the Advance Authorisation'. In my opinion, the restriction that drawback will be available only for 'duty paid inputs not specified in the norms' makes no sense. You may represent to the DGFT to remove that irrational restriction.
New Indian Express
07-05-2025
- Business
- New Indian Express
Union government to review tyre import norms as rubber prices fluctuate
KOTTAYAM: Amid fluctuating prices impacting the rubber plantation sector, the Union Government is taking decisive steps to address the long pending concerns raised by farmers regarding the loopholes in the import rules of rubber. Aiming to tighten regulations and prevent illegal import of rubber, the Directorate General of Foreign Trade (DGFT) under the Union Ministry of Commerce and Industry has taken steps for a comprehensive review of the Standard Input Output Norms (SION) rates for tyre products. According to reports, the DGFT has issued a trade notice announcing a comprehensive review of the SION applicable to automobile tyres. Earlier, the National Consortium of Rubber Producers' Societies (NCRPS), a collective of rubber farmers, had raised concerns about undue tax-free import of natural rubber under the Advance Authorisation Scheme (Advance Licence) misusing the DGFT norms. 'As per the DGFT notification of 2010, a motor vehicle tyre weighing 100 kg, should contain 44 kg of natural rubber, 8.6 kg of synthetic rubber and 23 kg of carbon. However, advancement in the tyre manufacturing technology over the past 14 years have led to a decrease in the percentage of natural rubber to 18-28%, while the percentage of synthetic rubber has increased. Due to DFTO not renewing the notification of 2010 on time, the import of rubber is more than doubled by availing duty free benefit. This causes huge tax loss to the country and harm to farmers,' said Babu Joseph, NCRPS general secretary. Taking a serious note of their concerns over the tyre companies bending the rules under the pretext of Standard Input-Output Norms to suppress domestic prices, the Union Government is moving to update these decades-old norms. These norms, which specify how much raw material is needed to produce a finished export product, are crucial for companies availing of duty exemptions.
