Changes in duty drawback rates will boost India’s handicrafts exports: EPCH
The Dollar Business Bureau 
The recent changes in duty drawback rates and categorisation of handicraft products will help boost India’s handicrafts exports in the coming years, according to the Export Promotion Council for Handicrafts (EPCH). According to official sources, Indian handicrafts exports have grown steadily in the last few years, registering a y/y growth of around 15% to about $3.8 billion in FY2013-14. India’s exports of handicrafts are expected to grow to around $4.5 billion in FY2014-15.
Rakesh Kumar, Executive Director, Export Promotion Council for Handicrafts (EPCH)Overall, exports are expected to get a further boost due to the changes introduced by the government in the duty drawback rates. “This will encourage exporters to do better in the future in exporting handicrafts products. In fact, the changes will enable them to adopt the better pricing structures for export purposes,” Rakesh Kumar, Executive Director, EPCH, told The Dollar Business. He said that the changes are a result of intensive consultations with the industry. EPCH has held a series of meetings with the exporting community on duty drawback rates and government departments as well following which the changes were announced last month. A comparative statement indicating the old duty drawback rates and the new duty drawback rates for various products where changes have been made can be found below. The government has revised the codes for some of the items, reducing the number of digits used in the codes from some items from ten to either four or six. Further, in order to encourage glassware exporters, the government has introduced a new duty drawback entry – 702002 for “Glass Art ware/Handicrafts made of two or more ply glass with or without metallic fusion”, said EPCH. However, the government did not change the duty drawback rates for some items, including EPNS ware; Art ware/Handicrafts of Brass; Art ware/Handicrafts of Copper; Aluminium Art ware/Handicrafts; Handicrafts/Art ware of cast iron or Iron or steel with or without plating/coating/Galvanizing/Brass; Handicrafts/art ware of stainless steel; Glass art ware/handicrafts; Glass art ware/Handicrafts made of two or more ply glass with or without metallic fusion; Handicrafts/art work of Wood; Perfumed aggarbati/Incense sticks/Dhoops/Loban; and Decorative Handicrafts Articles made of papier-mâché. EPCH has welcomed the changes and has said that the reactions of the exporting community and others concerned with the trade have been satisfactory and appreciative. Details of new duty drawback rates with effect from November 22, 2014:
| A | B | A | B | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Tariff Item | Description of goods | Unit | Drawback when Cenvat facility has not been availed | Drawback when Cenvat facility has been availed | Drawback when Cenvat facility has not been availed | Drawback when Cenvat facility has been availed | |||||
| Drawback Rate | Drawback cap per unit in Rs. | Drawback Rate | Drawback cap per unit in Rs. | Drawback Rate | Drawback cap per unit in Rs. | Drawback Rate | Drawback cap per unit in Rs. | ||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | |
| 3307 | Pre-shave, shaving or after shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included, prepared room deodorizers, whether or not perfumed or having disinfectant properties | ||||||||||
| 33074100 | Perfumed Agarbatti / Incence Sticks / Dhoop / Loban | Kg. | 11.50% | 47 | 3.30% | 13.5 | 13% | 49 | 4% | 15.1 | |
| New Code | |||||||||||
| 330702 | |||||||||||
| 3307000099 | Others | 1.70% | 1.70% | 1.90% | 1.90% | ||||||
| New Code | |||||||||||
| 3307099 | |||||||||||
| 44140000 | Wooden frames for paintings, photographs, mirrors or similar objects | Kg. | 4.70% | 17.6 | 1.70% | 6.4 | 5.20% | 31.5 | 1.90% | 11.5 | |
| New Code | |||||||||||
| 4414 | |||||||||||
| 4419 | Tableware and kitchenware, of wood | Kg. | 4.70% | 17.6 | 1.70% | 6.4 | 5.20% | 31.5 | 1.90% | 11.5 | |
| 4420 | Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling in chapter 94 | Kg. | 4.70% | 17.6 | 1.70% | 6.4 | 5.20% | 31.5 | 1.90% | 11.5 | |
| 4421 | Other articles of wood | ||||||||||
| 442101 | Handicrafts / Artware of wood | Kg. | 4.70% | 17.6 | 1.70% | 6.4 | 5.20% | 31.5 | 1.90% | 11.5 | |
| 442199 | Others | 1.70% | 1.70% | 1.90% | 1.90% | ||||||
| 4823 | Other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or shape; other article of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres | ||||||||||
| 4823901806 | Decorative handicraft articles made of papier machie | Kg. | 6.30% | 7.6 | 1.70% | 2.1 | 6.30% | 8 | 1.90% | 2.4 | |
| New Code | |||||||||||
| 482306 | |||||||||||
| 4823000099 | Others | 1.70% | 1.70% | 1.90% | 1.90% | ||||||
| New Code | |||||||||||
| 482399 | |||||||||||
| 5605 | Metallised yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal | 1.90% | 1.90% | ||||||||
| 560501 | Immitation Zari | 1.90% | 1.90% | Deleted | |||||||
| 560599 | Others | 1.70% | 1.70% | Deleted | |||||||
| 5804 | Tulles and other net fabrics, not including woven, knitted or crocheted fabrics; lace in the piece, in strips or in motifs, other than fabrics of heading 6002 to 6006 | Kg | 4.30% | 19.2 | 1.70% | 7.6 | 5.10% | 33 | 1.40% | 9 | |
| 5808 | Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles | Kg | 4.30% | 19.2 | 1.70% | 7.6 | 5.10% | 33 | 1.40% | 9 | |
| 5809 | Woven fabrics of metal thread and woven fabrics of metallised yarn of heading 56 05, of a kind used in apparel, as furnishing fabrics or for similar purposes, not elsewhere specified or included | 1.90% | 1.90% | ||||||||
| 580901 | Imitation Zari | 1.90% | 1.90% | Deleted | |||||||
| 580902 | Others | 1.70% | 1.70% | Deleted | |||||||
| 5810 | Embroidery in the piece, in strips or in motifs | Kg | |||||||||
| 581001 | Of Silk | Per Kg. of Silk Content | 8.70% | 626.4 | 7.60% | 547.2 | 8.80% | 745 | 7.70% | 651.9 | |
| 581099 | Others | Kg | 4.90% | 31.5 | 1.30% | 8.30% | 5.10% | 33 | 1.40% | 9 | |
| 5811 | Quilted textile products in the piece, composed of one or more layers of textile materials assembled with padding by stitching or otherwise, other than embroidery of heading 5810 | Kg | 4.30% | 19.2 | 1.70% | 7.6 | 4.30% | 19 | 1.90% | 8.4 | |
| 5905 | Textiles wall coverings | ||||||||||
| 590501 | Of manmade fiber | Kg | 8.20% | 35.1 | 1.90% | 8.1 | 8.20% | 64 | 1.90% | 14.8 | |
| 590502 | Of cotton and others | Kg | 4.40% | 21.7 | 1.70% | 8.4 | 5.10% | 33 | 1.40% | 9 | |
| New Code | |||||||||||
| 590599 | |||||||||||
| 680204 | Artistic & Decorative crafted stone products (Handicrafts) made out of granite. | 1.90% | 1.90% | 1.40% | 1.40% | ||||||
| 7013 | Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of heading 7010 or 7018) | ||||||||||
| 70133100 | Hand cut lead crystal Glass ware | Kg | 5.70% | 24 | 1.90% | 8 | 6% | 26 | 1.90% | 8.2 | |
| New Code | |||||||||||
| 701301 | |||||||||||
| 70139991 | Jars, perfume bottle, candleplate/coasters, votive, lotionbottle/soap dish, ornamental spheres/stars/bells | Kg | 5.70% | 24 | 1.70% | 7.2 | 6% | 26 | 1.90% | 8.2 | |
| New Code | |||||||||||
| 701303 | |||||||||||
| 7020 | Others articles of Glass | ||||||||||
| 70200090 | Glass Artware / Handicrafts | Kg | 7% | 72 | 1.70% | 17.5 | 7% | 64 | 1.90% | 17.4 | |
| New Code | |||||||||||
| 702001 | |||||||||||
| New Code 702002 | Glass Artware / Handicrafts made of two or more ply glass with or without metallic fusion | Kg | New Entry | 7.50% | 100 | 1.90% | 25.3 | ||||
| 70200091 | Glass Refills Silver Coated for Vacuum Flasks | Kg | 5.70% | 24 | 3% | 12.6 | 6% | 26 | 2.40% | 10.4 | |
| New Code | |||||||||||
| 702003 | |||||||||||
| 70200092 | Glass to Metal seals | Kg. | 1.70% | 1.70% | Deleted | ||||||
| 7020000099 | Others | 1.70% | 1.70% | 1.90% | 1.90% | ||||||
| New Code | |||||||||||
| 702099 | |||||||||||
| 7117 | Imitation Jewellery | ||||||||||
| 7117909001 | Brass Jewellery | Kg | 7.20% | 139.5 | 1.70% | 32.9 | 7.20% | 140 | 1.90% | 36.9 | |
| New Code | |||||||||||
| 711701 | |||||||||||
| 7117909002 | Aluminium Jewellery | Kg | 5.50% | 36.9 | 1.70% | 11.4 | 5.50% | 37 | 1.90% | 12.8 | |
| New Code | |||||||||||
| 711702 | |||||||||||
| 7117909003 | Plastic Imitation Jewellery With or Without embellishments | Kg | 4.40% | 6.6 | 1.70% | 2.6 | 4.40% | 9 | 1.90% | 3.9 | |
| New Code | |||||||||||
| 711703 | |||||||||||
| 7117909004 | Plastic Bangles with or without embellishments | Kg | 4.40% | 18.2 | 1.70% | 7 | 4.40% | 18 | 1.90% | 7.8 | |
| New Code | |||||||||||
| 711704 | |||||||||||
| 7117909005 | Stainless steel Jewellery | Kg | 6.10% | 50.8 | 1.70% | 14.2 | 6.10% | 51 | 1.90% | 15.9 | |
| New Code | |||||||||||
| 711705 | |||||||||||
| 7117909006 | Iron Jewellery | Kg | 6.10% | 18.7 | 1.70% | 5.2 | 6.10% | 19 | 1.90% | 5.9 | |
| New Code | |||||||||||
| 711706 | |||||||||||
| 7117909007 | Glass Jewellery | Kg | 5.70% | 17.1 | 3.30% | 9.9 | 5.70% | 17 | 2.80% | 8.4 | |
| New Code | |||||||||||
| 711707 | |||||||||||
| 7326 | Other articles of Iron and Steel | ||||||||||
| 732601 | Handicrafts / Artware of Cast Iron New Description Handicrafts / Artware of Cast Iron or Iron or steel, with or without plating /coating /galvanizing/ brass | Kg | 8.60% | 43 | 1.70% | 8.5 | 9% | 40 | 1.90% | 8.4 | |
| 732602 | Other Handicrafts / Artware of Iron & Steel New Description Handicraft/Artware of stainless steel | Kg | 8.60% | 43 | 1.70% | 8.5 | 9% | 80 | 1.90% | 16.9 | |
| 732603 | Handicrafts/ Artware of Iron with or without plating / coating, galvanized or otherwise, with Brass | Kg | 8.60% | 43 | 1.70% | 8.5 | Deleted | ||||
| 732606 | Handicraft/Artware of stainless steel | Kg | 8.60% | 86 | 1.70% | 17 | Deleted | ||||
| 7326009 | Other articlesNew DescriptionOthers | Kg | 7.20% | 9.7 | 1.70% | 2.3 | 7% | 14 | 1.90% | 3.8 | |
| New Code | |||||||||||
| 732699 | |||||||||||
| 7418 | Table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, gloves and the like, of copper; sanitary ware and parts thereof, of copper | Kg | 11.50% | 105 | 2.20% | 20.1 | |||||
| 741803 | Electro plated nickel silver ware (EPNS) | kg | 11.50% | 130 | 2.20% | 24.9 | Deleted | ||||
| 7419 | Other articles of copper | ||||||||||
| 741901 | Artware / Handicrafts of Brass | Kg | 12% | 216 | 2.20% | 39.6 | 12% | 176 | 2.30% | 33.7 | |
| 741902 | Artware / Handicrafts of Copper | Kg | 12% | 261 | 2.20% | 47.8 | 12% | 213 | 2.30% | 40.8 | |
| 741909 | German silver scrap artwares excluding EPNS Wares | 1.70% | 1.70% | Deleted | |||||||
| 741910 | Other articles of Copper | Kg | 11.50% | 160 | 2.20% | 30.6 | 11.50% | 130 | 2.20% | 24.9 | |
| New Code | |||||||||||
| 741999 | |||||||||||
| 741911 | Other articles of Brass | Kg | 11.50% | 130 | 2.20% | 24.9 | 11.50% | 105 | 2.20% | 20.1 | |
| New Code | |||||||||||
| 741998 | |||||||||||
| 7616 | Other articles of Aluminium | ||||||||||
| 761601 | Aluminium Artware/ Handicrafts | Kg. | 6.60% | 67 | 1.70% | 17.3 | 6.60% | 61 | 1.90% | 17.6 | |
| 761699 | Others | Kg. | 6.60% | 21.7 | 1.70% | 5.6 | 6.60% | 28 | 1.90% | 8.1 | |
| 8306 | Bells, gongs and the like, non-electric, of base metal; statuettes and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal | ||||||||||
| 830601 | Of brass and other copper alloys | Kg | 12% | 216 | 2.20% | 39.6 | 12% | 176 | 2.30% | 33.7 | |
| 830602 | Of Copper | Kg | 12% | 261 | 2.20% | 47.8 | 12% | 213 | 2.30% | 40.8 | |
| 830603 | Of Iron and Steel | Kg. | 8.60% | 43 | 1.70% | 8.5 | 9% | 40 | 1.90% | 8.4 | |
| 830604 | Of Aluminium | Kg. | 6.60% | 67 | 1.70% | 17.3 | 6.60% | 61 | 1.90% | 17.6 | |
| 830699 | Others | Kg | 7.20% | 9.7 | 1.70% | 2.3 | 7% | 14 | 1.90% | 3.8 | |
| 92 | Musical Instruments; parts and accessories of such articles | ||||||||||
| 9201 | Pianos, including automatic pianos; harpsi-chords and other keyboard stringed instruments | 4.70% | 1.70% | 5% | 1.90% | ||||||
| 9202 | Other string musical instruments ( for example guitars, violins, harps) | 4.70% | 1.70% | 5% | 1.90% | ||||||
| 9205 | Wind musical instruments (for example, keyboard pipe organs, accordions, clarinets, trumpets, bagpipes) other than fairground organs and mechanical street organs | 4.70% | 1.70% | 5% | 1.90% | ||||||
| 92060000 | Percussion musical instruments (for example, drums, xylophones, cymbols, castanets, maracas) | 4.70% | 1.70% | 5% | 1.90% | ||||||
| New Code | |||||||||||
| 9206 | |||||||||||
| 9207 | Musical instruments, the sound of which is produced, or must be amplified, electrically (for example, organs, guitars, accordions) | 4.70% | 1.70% | 5% | 1.90% | ||||||
| 9403 | Other furniture and parts thereof | Kg | 5% | 20 | 1.90% | 7.6 | |||||
| 940399 | Other furniture articles made out of other materials including wood, bamboo or cane | Kg. | 4.7% | 17.6 | 1.70% | 6.4 | Deleted | ||||
| 9405 | Lamps and Lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs , illuminated name-plates and the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included | ||||||||||
| 940501 | Hurricane Lantern made of Tin Plate New Description Of Brass | Kg | 4.70% | 23.5 | 1.70% | 8.5 | 11.50% | 105 | 2.20% | 20.1 | |
| 940502 | Lamps made of Brass New Description Of Copper | Kg | 11.50% | 130 | 2.20% | 24.9 | 11.50% | 130 | 2.20% | 24.9 | |
| 940503 | Lamps made of Copper New Description Of Wrought Iron | Kg | 11.50% | 160 | 2.20% | 30.6 | 9% | 40 | 1.90% | 8.4 | |
| 940504 | Lamps made of Iron New Description Of Aluminium | Kg | 8.60% | 43 | 1.70% | 8.5 | 6.60% | 61 | 1.90% | 17.6 | |
| 940505 | Lamps made of Aluminum New Description Of Glass | Kg | 6.60% | 67 | 1.70% | 17.3 | 7% | 64 | 1.90% | 17.4 | |
| 940506 | Lanterns/ Lamps predominantly of glass | Kg | 7% | 72 | 1.70% | 17.5 | Deleted | ||||
| 940599 | Others | Kg | 4.70% | 23.5 | 1.70% | 8.5 | 5% | 26 | 1.90% | 9.9 | |
| 9504 | Video game consoles and machines, articles of funfair, table or parlour games, including pintables, billiards, special tables for casino games and automatic bowling alley equipment | ||||||||||
| 950401 | Carrom Board, with or without coins and strikers | Piece | 6.70% | 91.9 | 1.70% | 23.3 | 7% | 96 | 1.90% | 26.1 | |
| 9505 | Festive, Carnival or other entertainment articles, including conjuring tricks and novelty, jokes | 1.70% | 1.70% | 1.90% | 1.90% |
This article was published on December 11, 2014.
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