Availability of benefit of Notification No. 20/99-Cus., Sl. No. 110, List 3A; Item No. 29, Styrene Butadiene Styrene Oil Bound Copolymer (SBOC) for the manufacture of soles - Regarding - Customs - 086/99

Circular No. 86/99-Cus. Dated 27-12-1999 [From F. No. 528/127/98-Cus.(TU)] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Availability of benefit of Notification No. 20/99-Cus., Sl. No. 110, List 3A; Item No. 29, Styrene Butadiene Styrene Oil Bound Copolymer (SBOC) for the manufacture of soles - Regarding I am directed to refer to the subject mentioned above and to say that instances have been brought to the notice of the Board that some Custom Houses have denied the benefit of the said notification to SBOC, on the ground that it is not directly used in the manufacture of soles. It has also been stated that SBOC is not used directly in the manufacture of soles but in the manufacture of one intermediate product, namely, Thermo Plastic Rubber (TPR) compound which, in turn, is used in the manufacture of soles for footwear/leather industry. 2. The matter has been examined. It is seen that a concessional rate of duty has been prescribed for goods which are used in the leather industry as listed in Lists 3A and 3B (ref : S. No. 110 of the Table) appended to the Notification No. 20/99-Cus. While goods mentioned at List 3B are subject to condition No. 14, no such condition has been prescribed for goods mentioned in List 3A. The only condition is that the goods are to be used in the leather industry. In this connection, it has been clarified by the Footwear Design and Development Institute that TPR compound, which is manufactured out of SBOC, is used for the manufacture of TPR soles which, in turn, is used by footwear manufacturers in leather industry. It has also been clarified by Council for Leather Exports that even non leather footwear falls under their purview. Having regard to these points, as also considering that SBOC has been specifically mentioned at Sl. No. 29 of List 3A appended to the Notification No. 20/99-Cus., the Board has decided that the concessional duty under the said notification needs to be allowed to the subject item. While arriving at this decision, account has been taken of the instructions issued vide Board's Circular No. 74/98-Cus., dated 6-10-1998 [see 1998 (103) E.L.T. T40-41]. 3. The Custom Houses may finalise the pending provisional assessments on the basis of above instructions. To safeguard Government revenue and to avoid the possibility of misuse an end-use bond may be taken from the importers. 4. Difficulties, if any, in implementing the above instructions may be brought to the notice of the Board. Please acknowledge the receipt of this circular.