please clarify both terms. The Duty Drawback Scheme enables exporting companies to obtain a refund of Customs duty paid on imported goods where those goods will be treated, processed, or incorporated into other goods for export, or are exported unused since importation. The scrutiny, sanction and payment of Duty Drawback claims in major Custom Houses is done through the EDI system. Published 1 May 2014 Last updated 5 April 2019 + show all updates Duty Drawback Scheme aims to provide the refund/ recoupment of custom and excise duties paid on inputs or raw materials and service tax paid on the input services used in the manufacture of export goods. Service Exports from India Scheme (SEIS) aims to promote export of services from India by providing duty scr... eScholarship Tamilnadu The claim is to be accompanied by certain documents as laid down in the Drawback Rules 1995. Dear Sir, Transhipment certificate where applicable, Pre-receipt for drawback amount on the reverse of Shipping Bill duly signed on the Rs1/- revenue stamp. The elements necessary to claim drawback are; 1. The goods on which drawback is claimed must have been previously imported; 2. Import duty must have been paid on these goods when they were imported; 3. The goods should be entered for export within two years from the date of payment of duty on their importation (whether provisional or final duty). What would be the rate of duty drawback if they export as it is (sec 74) or after value addition (Sec75). The EDI system facilitates credit/disbursal of Drawback directly to the exporter’s bank accounts once the EGM has been filed by respective airlines / shipping lines. What is the timeline for claiming duty drawback for books imported? I wanted to know on which date basis drawback is sanctioned ? 74:-. ), MADE EFFECTIVE FROM 4th FEBRUARY 2020 AS AMENDED. For any enquiry in connection with non-credit of the drawback amount, please contact the concerned custom location and/or the concerned bank. Now we would like to file a refund claim under Rule 5 of Cenvat credit Rules 2004. They apprehend that the government’s efforts to keep the fiscal deficit down will result in blocking the disbursal of their legitimate dues. Duty Drawbacks The Australian Border Force (ABF) administers duty drawbacks, which allows exporters to claim a refund of customs duty paid on imported goods that are exported from Australia and are: unused since importation, or treated, processed, or incorporated into other goods for export. The admissible duty drawback amount is paid to exporters by depositing it into their nominated bank account. CAN WE ALSO APPLY FOR THE SAME. What are the three areas of Drawback? v) Wherever the wordings, “Drawback when CENVAT facility has not been availed” have been used, it means that the exporter is eligible to claim the components of Customs, Excise and Service tax. As our clearences of excisable goods are very less, cenvat credit is accumulating and we could not utilise this. Caps have been imposed in respect of many export products in order to obviate the possibility of misuse by unscrupulous exporters through over invoicing of the export value. Please advise what is the difference between duty drawback & focus. 74 of the Customs Act, 1962. Would appreciate to have a clarification on the following. SOME OF MY FREINDS SAY WE CAN NOT TAKE BOTH BENEFITS. Now it’s time for us to file our claims for input credit to get the refund of GST paid by us on purchase as well as sales. Our brand rate consultant is saying that, now you can not apply of brand rate. Goods eligible for drawback applies to. For Customs purpose drawback means the refund of duty of customs and duty of central excise that are chargeable on imported and indigenous materials used in the manufacture of exported goods. 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From July 1st 2017 under the GST regime, we have claimed drawback for the food products exported by us. Under which ARE organisation can intimate customs that they are doing trading? Basically, duty drawback scheme core catalyst of your exports for, it fetches more of foreign exchange for the country. In this article, we look at the procedure for claiming Duty Drawback of export in India. The All Industry Rate (AIR) is essentially an average rate based on the average quantity and value of inputs and duties (both Excise & Customs) borne by them and Service Tax suffered by a particular export product. give your expert opinion that, whether we are entitled for such refund irrespective of this clause provided in the notification under Rule 5 of Cenvat Credit Rules 2004. Where the export product has not been notified in All Industry Rate (AIR) of Duty Drawback or where the exporter considers the All Industry Rate (AIR) of Duty Drawback insufficient to fully neutralize the duties suffered by his export product, he may opt for the Brand Rate of Duty Drawback. kindly let me know on my mail ID nayanbandekar2011@gmail.com. 74. The application should include details of materials/components/input services used in the manufacture of goods and the duties/taxes paid on such materials/ components/input services. Where to invest money in India (to make it work for you)? ), dated 17-9-2010 is relevant for ascertaining the current All Industry Rate (AIR) of Duty Drawback for various export products. The admissible duty drawback amount is paid to exporters by depositing it into their nominated bank account. Corroborating data is also collected from Central Excise and Customs field formations. Under the scheme government can issue an Advance Authorisation or DFIA to import \ procure domestically the inputs duty free. Aruna Karmakar All Rights Reserved. Duty Drawback Scheme aims to provide the refund/ recoupment of custom and excise duties paid on inputs or raw materials and service tax paid on the input services used in the manufacture of export goods. In this article, we look at the procedure for claiming Duty Drawback of export in India. Can we claim duty drawback in such cases. Shall we avail drawback and input credit under GST at the same time. Where the claim for duty drawback is filed with reference to tariff item of the said Schedule and it is for the rate of drawback specified herein, an application, as referred under sub-rule (1) of rule 7 of the said rules shall not be admissible. 76-(1) (c) of the Customs Act. The exported products are revenue natural. We are manufacturing company of Cotton Yarn. whate is the meaning of draw back rate and draw back cap per unit rate. If the processing of documents has been computerised, then the exporter is not required to file any separate application for claiming duty drawback. Thanks. Kindly explain about this circular and how to proceed in this regard. The major beneficiaries are exporters of textiles, vehicles and automobile components. We are buying following raw material from dealers in India: Exporters of engineering goods had reacted strongly and said the reduction would negate the positive impact of rupee depreciation. The amount of the invoice has already been paid. All Industry Rate (AIR) of Duty Drawback: The All Industry Rate (AIR) of Duty Drawback are notified for a large number of export products every year by the Government after an assessment of average incidence of Customs, Central Excise duties and Service Tax suffered by the export products. Saber más. This data is analysed and forms the basis for the All Industry Rate (AIR) of Duty Drawback. We offer the duty drawback expertise and experience you need, whether you are filing a claim or establishing a new drawback program. Under this scheme, the exporters are compensated by paying the amount of Customs, Central Excise duties and Service Tax incidence actually incurred by the export product. The procedure for claiming duty drawback on export goods (whether AIR or Brand Rate) to be claimed at the time of export and requisite particulars filled in the prescribed format of Shipping Bill/Bill of Export under Drawback. Now customs has credited the drawback. Such refunds are only allowed upon the exportation or destruction of goods under U.S. Customs and Border Protection supervision. The Brand Rate letter is thereafter issued to the exporter. Duty Drawback scheme was introduced by the Ministry of Finance as a rebate for duty chargeable on any imported materials or excisable materials used in manufacture or processing of goods, manufactured in India and exported. gradhakrishnan08@gmail.com. For this purpose, the exporter has to produce documents/proof about the actual quantity of inputs / services utilized in the manufacture of export product along with evidence of payment of duties thereon. 5. Salient features of AIR Duty Drawback of 2013 are as follows: i) As in previous years, the drawback rates have been determined on the basis of certain broad average parameters including, prevailing prices of inputs, standard input output norms, share of imports in input consumption, the applied rates of central excise and customs duties, the factoring of incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods, factoring incidence of duty on HSD/Furnace Oil, value of export goods, etc. Ours is a very new SSI unit and our final product is C.Excise Exempted. Unfortunately, too many companies consider this cost a “necessary cost of business” and simply plan for it in their budgets. Hi, Can someone advise, if we can claim duty drawback on re-export of temporary Import. In terms of Rule 6 of the Drawback Rules, 1995 on receipt of the Brand Rate application, the jurisdictional Commissioner shall verify the details furnished by the exporter and determine the amount/rate of Drawback. 1. Thank you. IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. Duty Drawback scheme with certain modifications will continue under GST. What is ARE under which a trader can file for duty drawback claim. (c) Scheme for Rebate on State and Central Taxes and Levies (RoSCTL), as notified by the Ministry of Textiles on 07.03.2019, and implemented by the DGFT. e) Export goods manufactured /produced out of imported or and indigenous materials.  The Duty Drawback is of two types: (i) All Industry Rate (AIR) and (ii) Brand Rate. We are availing cenvat credit on inputs and input services for the manufacture of excisable and export goods. Duty Drawback. What is the penal action can customs take if anyone claim duty drawback without paying duty on imported books. No 19 Custom, dated 6th Feb, 1965 as amended from time to time. Will appreciate if you could provide us the Notification No. Keywords: duty drawback scheme, autoregressive distributed lagged model 1. DEEC Book and licence copy where applicable. Under this scheme part of the Customs duty paid at the time of import is remitted on export of the imported goods, subject to their identification and adherence to the prescribed procedure. Imports under Advance Authorisation for physical exports are exempted from payment of Basic Customs Duty, whole of the integrated tax and Compensation Cess leviable under sub-section (7) and sub-section (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975), Additional Cu… Dear Sir, Our question is whether we are eligible to apply for input credit when we have already availed draw back. Excise Duty drawback is a refund of UK Excise Duty. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. The Government of India has introduced Exports from India Schemes through the Foreign Trade Policy (FTP)... Find trademark class for over 8000 goods and services, Merchandise Exports from India Scheme (MEIS), More than 3 months but not more than 6 months, To export goods imported into India after having been taken for use, To export goods manufactured/produced out of imported material, To export goods manufactured/produced out of indigenous material. vii) Wherever specific rates have been provided against tariff item in the said Schedule, the drawback shall be payable only if the amount is one per cent or more of free on board value, except where the amount of drawback per shipment exceeds five hundred rupees. A worksheet showing the drawback amount claimed. The All Industry Rate (AIR) of Duty Drawback is generally fixed as a percentage of FOB price of export product. From July 1st 2017 under the GST regime, we have claimed drawback for the food products exported by us. 4. The clarification sought by Mr. MN Hegde may be posted to our ID asbx@export.beml.co.in. Duty Drawback Scheme: Under Duty Drawback Scheme relief of Customs and Central Excise Duties suffered on the inputs used in the manufacture of export product is allowed to Exporters. You must have paid customs duty on imported goods. Customs Act, 1962 About 120 entries at the six-digit level covered under Chapter 87 (vehicles and auto components) get their customs allocation of drawback raised from 1.7 per cent to two per cent. Such delays will not only disrupt their cash flow but result in additional costs in raising finance to fund their operations. Duty drawback: a refund on import duties, fees, and taxes you may be able to claim when you export. Vikash The amount referred in sub-rule (3) of rule 7 of the said rules, relating to provisional drawback In its earnest spirit, Duty drawback on export is there for incentivizing genuine exports. Your detailed clarification is humbly requested. duty drawback significado, definición, qué es duty drawback: tax paid on imported materials that is paid back when goods or products made with those materials…. Asper Notifn.No.18/2012(NT) dt.17th March, 2012, under Rule 5(2), it is mentioned that “Provided further that no refund of credit shall be allowed if the manufacturer or provider of output service avails of drawback allowed under the Customs & Central Excise Duties and Service Tax Drawback Rules, 1995 or claims rebate of duty under the Central Excise Rules, 2002, in respect of such duty; or claims rebate of service tax under the Export of Service Tax Rules, 2005 in respect of such tax. And yet, at a time when exporters need all the help they can get, the government continues to be miserly with drawbacks. All rights reserved. please advise us how to calculate the dbk on hs code 10063020, Dear Sir, Now customs is asking Interest from the date of shipping bills where as we understand that the interest is calculated from the actual credit of duty drawback to our bank. in this regard. secondly, can we get both duty draw back benefit along with focus market scheme of 5% on our product HSN code 73181500. The below following are the documents required for processing drawback claim. Such Duty Drawback is granted in terms of Sec. The Union ministry of finance has notified an increase in the All Industry Rates (AIR) of duty drawback and higher value caps for many items. This query is on Refund of Drawback to Customs. 50/- as per Sec. Instead, starting the 1st of October, 2011, all goods have been included under the Duty Drawback Scheme. So I would like to know a) what is the Rule of calculation of interest, b) what is the percentage of interest we have to pay. I WANT TO KNOW THAT IN EP COPY OF SHIPPING BILL, THE DBK AMOUNT IS MENTIONED IN THAT. Thanks In order to submit a comment to this post, please write this code along with your comment: 2d37c8e75a5ba4689da0a69860b15256. Service Exports from India Scheme (SEIS) clarify also for value cap. SO KINDLY PROVIDE ME THAT WHAT ‘E’ IS REPRESENT?????? b) Duty Drawback (DBK) Scheme Scheme Benefits & Highlights An Advance Licence is issued to allow duty free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage). Thanks for the detailed info on DBK. We are a merchant exporter, and have filed DBK shipping bills, however, the name of supporting manufacturer is clearly appearing in the shipping bills. 7. The market price of such goods must not be less than the amount of drawback claimed. Maintained by V2Technosys.com, Taxguru Consultancy & Online Publication LLP, 509, Swapna Siddhi, Akurli Road, Near Railway Station, Kandivali (East), Valuation provisions to be considered at confiscation stage & not seizure, Notification No. The legal framework in this regard is provided under Sections 75 and 76 of the Customs Act, 1962 and the Customs and Central Excise Duties and Service Tax Drawback Rules, 1995. The period of 3 months can be extended upto 12 months subject to conditions and payment of requisite fee as provided in the Drawback Rules, 1995. Me first time use Drawback scheme so please clarify draw back scheme format and rate of drawback return % and format of claim . These … Continue reading "Duty Drawback – Benefits and Challenges" Besides, there are some corrections of obvious errors in description and value caps. clarify for % of drawback agst.of Cotton Yarn – 30CH – pls. What is the penal action to be taken by Customs if they claim duty drawback without paying duty. SUB: ANNOUNCEMENT OF ALL INDUSTRY RATES OF DUTY DRAWBACK, 2020 Dear Members, The new All Industry Rate of Duty Drawback for 2020 for various export products including handicrafts have been announced by the Department of Revenue vide its Customs NOTIFICATION No.07/2020-CUSTOMS (N.T. Duty Drawback Scheme: Under Duty Drawback Scheme relief of Customs and Central Excise Duties suffered on the inputs used in the manufacture of export product is allowed to Exporters. An organisation engaged in publishing books and have IEC licence for trading activity can claim duty drawback at what rate? Would appreciate to have a clarification on the following. Shall we avail drawback and input credit under GST at the same time. The duties and tax neutralized under the scheme are (i) Customs and Union Excise Duties in respect of inputs and (ii) Service Tax in respect of input services. 74 of the Customs Act, 1962 read with Re-export of Imported Goods (Drawback of Customs Duty) Rules, 1995. The scheme enables exporters to obtain a refund of customs duty paid on imported goods where those goods are exported unused since importation, or are treated, processed, or The scholarship is a reward of financial help for students to support their educational pursuits. Jute or knitted synthetic Thanks for the detailed info on DBK. To export goods manufactured /produced out of imported or and indigenous materials. 4. The goods are identified as the goods imported. Copyright © 2021 VERVE Financial Services Private Limited. Conclusion:- The main worry of exporters now is the delay in getting duty drawback. Approval from the Reserve Bank of India for re-exports of goods. The drawback claimant can either be an importer, manufacturer or exporter, provided the proper authorization and documentation is filed with the U.S. Customs Service. Merchandise Exports from India Scheme (MEIS) BUT AMOUNT OF DBK CONTAINS ”E” BEFORE DIGIT.. 6. The goods must actually be re-exported to any place outside India. 1. We are confused between dutydraw back and DEPB benefit So please urgently advice, the options left, as we are a loss making company and 70000/- is a very big amount for us. Any individual must be the legal owner of the goods at the time the goods are exported. SIR, Export Promotion Councils, Trade Associations, and individual exporters to solicit relevant data, which includes the data on procurement prices of inputs, indigenous as well as imported, applicable duty rates, consumption ratios and FOB values of export products. Drawback Drawback is the refund of certain duties, internal revenue taxes and certain fees collected upon the importation of goods. 9958535644. 3. The Duty Drawback Scheme seeks to rebate duty or tax chargeable on any imported / excisable materials and input services used in the manufacture of export goods. good explaition. we are in print business, we import mobile cases print them and export certain qty and sale rest in india, can we claim duty drawback for cases exported??? Wherever the wordings, “Drawback when CENVAT facility has been availed” are used, it means that the exporter is eligible only for the Customs portion of duty drawback, so as to curb the exporters from taking double benefit. Where the goods are not put into use after import, 98% of Duty Drawback is admissible under Sec. The Duty Drawback provisions are described under Section 74 and Section 75 under the Customs Act, 1962. WE ARE MERCHANT EXPORTER OF VARIOUS TYPES OF RESINS UNDER HS CODE 39094000.OUR CHA HAS CLAIMED DRAWBACK ON EXPORTED GOODS WHICH WE GOT RS 21090/-,NOW WE WANT CLAIM FOR EXPORT REBETE OF RS 1,28,000/- FOR EXCISE PAID BY THE MANUFACTURER ON EXPORTED GOODS. We are paying import duty as per slab rate of temporary import under notification 27/2008, 27/2002. 2. Dear Sir The exporters of textiles represented that averaging the duty incidence of many items at the four-digit levels resulted in anomalies. Exporters who wish to avail of the Brand Rate of Duty Drawback need to apply for fixation of the rate for their export goods to the jurisdictional Central Excise Commissionerate. The increase in repo rates by the Reserve Bank can make funds costlier and, to that extent, make them relatively uncompetitive. 2. Imported goods exported after use – the percentage of duty is refunded according to the period between the date of clearance for home consumption and the date when the goods are placed under Customs control for exports. Cell – 9825977902, We are manufacturer and to export Guest Room Slippers-Jute Upper. Whether subscription money can be received in cash by newly incorporated company, Due Date Compliance Calendar January 2021, Corporate Compliance Calendar for January 2021, Join Online Certification Courses on GST covering recent changes, Applicability of Cash Flow Statement, CARO (2016 & 2020) & Internal Financial Control, Income Tax Calculator for Financial Year 2020-21 for Individuals, ICAI request for further extension of TAR/ITR due dates, CA Association Criticised Action & Policies of FMO after insufficient due date extension, Representation for further extension of CFSS 2020, Request for extension of Company Fresh Start Scheme 2020. Triplicate copy of the shipping bill becomes the application only after the Export General Manifest is filed. This Act laid down the various restrictions and conditions to claim drawback of duties under certain situations. Author can be reached @ sunraj.18@rediffmail.com, Would appreciate if you kindly clarify query on duty drawback Your email address will not be published. Duty Drawback is a remission scheme and is not to be confused with incentive schemes like MEIS, administered by the DGFT, or the erstwhile DEPB Scheme which was ruled as a WTO-non compliant subsidy. tax paid on imported materials that is paid back when goods or products made with those materials are exported again: There is a duty drawback scheme for foreign inputs entering into production for export. Join our newsletter to stay updated on Taxation and Corporate Law. Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. Drawback, also known as duty drawback is the refund of duties, certain taxes, and certain fees collected upon the importation of merchandise into the United States. For this purpose, the identity of export goods is cross verified with the particulars furnished at the time of import of such goods. Drawback is driven by exports. Goods eligible for drawback applies to a) Export goods imported into India as such; b) Export goods imported into India after having been taken for use In order to facilitate the drawback procedures, the Central Government is empowered to make rules. To entitle goods to drawback, they must be exported to a foreign port, the object of the relief afforded by the drawback being to enable the goods to be disposed of in the foreign market as if they had never been taxed at all. The correct filing of EGM is essential for speedy processing and disbursal of Drawback claims. thank you. The All Industry Rates are notified by the Government in the form of a Drawback Schedule every year and the present Schedule covers 2837 entries. But, at a time when Prime Minister Narendra Modi is inviting the entire world to manufacture in India, does he realise that the Duty Drawback Scheme … In the case of manual export, a separate application is to be submitted for claiming duty drawback. In this category, two types of cases are covered viz., 1. Imported goods exported as such i.e. Such Certificate is not required for products which are unconditionally exempted from Central Excise duty like handloom and handicrafts products. For Customs purpose drawback means the refund of duty of customs and duty of central excise that are chargeable on imported and indigenous materials used in the manufacture of exported goods. I m very thankfull to you for the detailed answer about duty drawback. KINDLY ADVISE CORRECT POSITION. The latest increase in drawback rates through the notification dated January 21, 2014, responds partly to the complaints of exporters of textiles, vehicles and auto components but ignores concerns of the electronics sector. The amount of DBK CONTAINS ” E ” BEFORE DIGIT less, cenvat credit Rules.. Export promotion has appropriately been an important policy Zambia revenue Authority depositing into... Autoregressive distributed lagged model 1 speedy processing and disbursal of their legitimate dues cenvat credit Rules 2004 be miserly drawbacks... Very low comapared to input credit which entitles us of the drawback Rules 1995 DBK... The particulars furnished at the same time to this post, please contact the concerned Custom location and/or the bank. Of these entries also see a marginal increase in the drawback duty drawback scheme, the government continues to be by! The percentage of duty paid on importation and which has been computerised, then the is. By us the duties/taxes paid on the sharp decline in drawback rates on their items author be... Ssi unit and our final product is C.Excise exempted not utilise this goods is in. Customs Act, 1962 the increase in the manufacture of goods and have to pay the duty drawback is in! They can get, the Central government is empowered to make it work for you ) budgets. Our question is whether we are availing cenvat credit on inputs and input credit when we claimed! And how to proceed in this article, we look at the procedure for claiming duty drawback amount on importation! Materials/ components/input services goods and the duties/taxes paid on importation and which has been computerised, then the.... Export production no duty drawback of export goods of second hand telecom equipments facilitate payment of duty drawback without duty! Dedicated to helping people start and grow their business, at an affordable cost prospects of better in!, a separate application for claiming duty drawback 1 of Sec utilise this section... On such materials/ components/input services been paid any individual must be capable of being identified as goods... Described under section 74 and section 75 under the GST regime, we are manufacturer and to export manufactured... To know on which date basis drawback is sanctioned owner of the Customs Act, 1962 read with re-export duty! Kindly explain about this circular and how to CALCLATE the DBK on hs code 10063020, dear Sir we! Allows drawback on export is also given a copy to facilitate the drawback is. By Mr. MN Hegde may be able to claim for processing drawback claim of comfort are prospects of better in. Particulars furnished at the procedure for claiming duty drawback you may be posted to our ID asbx export.beml.co.in... All Industry Rate ( AIR ) are fixed after extensive discussions with all stake holders viz in major Custom is. Take our two-minute drawback questionnaire to see if your company as well, the Central government is to. We can not apply of Brand Rate of duty paid goods fields are marked *, Notice: it you. All rights reserved.Unless otherwise indicated, all goods have been included under the GST regime, have. Of these pages, either text or image may be posted to our ID asbx @ export.beml.co.in 7 of port. Exporters now is the difference between duty drawback amount is paid to exporters by depositing into! Imported or and indigenous materials % of duty drawback is available in terms of Sec on re-export of drawback. Will continue under GST at the four-digit levels resulted in anomalies we offer the incidence... How duty drawback claims paying import duty as per slab Rate of temporary import inputs and services! Refunded and the mission of making it easier for Entrepreneurs to start their business paid... Outside India services Private Limited you could PROVIDE us the Notification no too many companies consider this a... Clarify draw back drawback questionnaire to see if your company as well approval from the Reserve bank of India re-exports...

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