Advance Authorisation Scheme (Erstwhile Advance Licence Scheme)

Schemes The Duty Exemption Scheme enables duty free import of inputs required for export production. An Advance Authorisation is issued under Duty Exemption Scheme. Duty Exemption Scheme consists of (a) Advance Authorisation Scheme and (b) Duty Free Import Authorisation Scheme (DFIA). A Duty Remission Scheme enables post export replenishment/ remission of duty on inputs used in the export product. Duty Remission scheme consist of (a) DFRC (Duty Free Replenishment Certificate) and (b) DEPB (Duty Entitlement Pass Book Scheme) and (c) DBK (Duty Drawback Scheme). Advance Authorisation Scheme Advance Authorisation An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in the export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts etc. which are consumed/utilised in the course of their use to obtain the export product, may also be allowed under the scheme. Duty free import of mandatory spares upto 10% of the CIF value of the Authorisation which are required to be exported/ supplied with the resultant product may also be allowed under Advance Authorisation. Advance Authorisations are issued on the basis of the inputs and export items given under SION. However, they can also be issued on the basis of Adhoc norms or self declared norms. Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s): i) for Physical exports (including exports to SEZ); and/ or ii) for Intermediate supplies; and /or iii) to the main contractor for supply of goods to the categories mentioned in paragraph 8.2 (b), (c), (d), (e), (f), (g), (i) and (iv) of the Foreign Trade Policy; for import of inputs required in the manufacture of goods. In addition, in respect of supply of goods to specified projects mentioned in paragraph 8.2 (d), (e), (f), (g) and (j) of the Policy, an Advance Authorisation can also be availed by the sub-contractor of the main contractor to such project provided the name of the sub contractor(s) appears in the main contract. Such Authorisation can also be issued for supplies made to United Nations Organisations or under the Aid Programme of the United Nations or other multilateral agencies and paid for in free foreign exchange. Advance Authorisation is issued for duty free import of inputs subject to actual user condition. Such Authorisations are exempted from payment of basic customs duty, additional customs duty, education cess, anti dumping duty and safeguard duty, if any. However, the imports for

supplies covered under sub-paragraph (h) & (i) of paragraph "Categories of Supply" of Section "Deemed Exports" of this site will not be exempted from the payment of applicable antidumping and safeguard duty, if any. Advance Authorisation and/or materials imported thereunder shall not be transferable even after completion of export obligation. However, the Authorisatione will have the option to dispose off the product manufactured out of the duty free inputs once the export obligation is completed. Advance Authorisations shall be issued with a positive value addition. However, for physical exports for which payments are not received in freely convertible currency, the same shall be subject to value addition as specified in Appendix-11 of Handbook (Vol.1). In case of supplies to SEZ Units, irrespective of the currency of realisation, Advance Authorisation shall be issued with a positive value addition. In case of Tea, the minimum value addition under advance Authorisation shall be 100%. In case of spices (covered by Chapter 9 of the ITC(HS) Classification of Export & Import Items, 2004-09), the minimum value addition under advance Authorisation shall be 15%. Advance Authorisation shall be issued in accordance with the Policy and procedure in force on the date of issue of Authorisation. The validity period of advance Authorisation for import shall be as prescribed in the Handbook (Vol.1). The facility of Advance Authorisation shall also be available where some or all of the inputs are supplied free of cost to the exporter. In such cases, for calculation of value addition, the notional value of free of cost inputs along with value of other duty-free inputs shall be taken into consideration. Export Obligation The period for fulfilment of the export obligation under Advance Authorisation shall be as prescribed in the Handbook (Vol.1). Provision for BIFR units Any firm/company registered with BIFR or any firm/ company acquiring a unit, which is under BIFR shall be allowed EOP extension as per the rehabilitation package prepared by the operating agency subject to subsequent approval of BIFR. However, in cases where the rehabilitation package does not specify the EOP extension period, a time period upto 5 years reckoned from the date of issue of Authorisation would be permitted on merits of the case for fulfillment of export obligation. Similarly, SSI units shall also be entitled for similar facility as per the rehabilitation scheme of the concerned State government. However, in cases where the State rehabilitation scheme does not specify the export obligation extension period, a time period upto 5 years reckoned from the date of issue of Authorisation would be permitted on merits of the case for fulfillment of export obligation.

Export Obligation Period Extension, as mentioned above, shall be without the payment of composition fee for cases where rehabilitation package has been announced/approved. Advance Authorisation for annual requirement Advance Authorisation can also be issued on the basis of annual requirement for physical exports, intermediate supplies and / or deemed exports. One to Five Star Export House shall be entitled for the Advance Authorisation for annual requirement. All other categories of exporters having past export performance (in the preceding two years) shall also be entitled for the Advance Authorisation for annual requirement. In addition, a merchant exporter shall also be issued the Advance Authorisation for Annual Requirement provided they agree to the endorsement of the name(s) of the supporting manufacturer(s) on the relevant Authorisation. The entitlement in terms of CIF value of imports under this scheme shall be upto 300% of the FOB value of physical export and / or FOR value of deemed export in the preceding licensing year or Rs 1 crore, whichever is higher. Such Authorisation shall have value addition. Advance Release Orders An Advance Authorisation holder, holder of advance Authorisation for annual requirement, holder of Diamond Imprest Authorisation, holder of DFIA and holder of DFRC intending to source the inputs from indigenous sources/State Trading Enterprises/ EOU/SEZ/ EHTP/STP/BTP units in lieu of direct import has the option to source them against Advance Release Orders denominated in free foreign exchange/ Indian rupees.. The transferee of a DFRC shall also be eligible for ARO facility. However, supplies may be obtained against the Authorisation from EOU/ EHTP/BTP/STP/SEZ units, without conversion into ARO. The validity period of ARO shall be as prescribed in the Handbook (Vol.1). Back-to-Back Inland Letter of Credit An Advance Authorisation holder, holder of advanceAuthorisation for annual requirement, holder of DFIA, holder of Diamond Imprest Authorisation and holder of DFRC may, instead of applying for an Advance Release Order, avail of the facility of Back-to-Back Inland Letter of Credit in accordance with the procedure specified in Handbook of Procedures (Vol.1). Prohibited Items Prohibited items of imports mentioned in ITC(HS) shall not be imported under the Advance Authorisation/DFIA/DFRC. Further the items reserved for imports by State Trading Enterprises cannot be imported against advance Authorisation/ DFIA/DFRC. However those items can be procured from State Trading Enterprises against ARO or Invalidation letter issued to the holder of advance Authorisation/DFIA/DFRC. The State Trading Enterprises are also allowed to sell the goods on High Sea Sale basis to the holders of Advance Authorisation/DFIA/DFRC. In addition, the State Trading Enterprises are permitted to issue "No Objection Certificate (NOC) if they so desire, for import by holder of advance Authorisation. DFIA holders would

also be eligible to import such items based on No Objection Certificate (NOC) from the STEs for only such products as notified by DGFT. However, the Authorisation Holder would be required to file Quarterly Returns of the imports effected against such No Objection Certificate to the concerned State Trading Enterprises (STEs) and the STEs, in turn, would submit Half-yearly import figures of such imports to the concerned administrative Department for monitoring with a copy endorsed to the Department of Commerce. Similarly prohibited items of exports mentioned in the ITC(HS) shall not be exported under the Authorisation issued under the Advance Authorisation/DFIA/DFRC scheme. Further, export of restricted items shall be subject to all conditionalities or requirements of export Authorisation or permission, as may be required, under Schedule II of ITC (HS). Admissibility of Drawback In the case of an Advance Authorisation, the drawback shall be available in respect of any of the duty paid materials, whether imported or indigenous, used in the goods exported, as per the drawback rate fixed by Ministry of Finance (Directorate of Drawback). The Drawback shall however be restricted to the duty paid materials as mentioned in the application. Duty Free Replenishment Certificate (DFRC) DFRC is issued to a merchant exporter or manufacturer exporter for the import of inputs used in the manufacture of goods without payment of basic customs duty. However, such inputs shall be subject to the payment of additional customs duty equal to the excise duty at the time of import. DFRC shall be issued on minimum value addition of 25% except for items in gems and jewellery sector for which value addition as given in paragraph 4A.2.1 of the Handbook of Procedures (Vol.1) and items for which higher value addition is prescribed under Advance Authorisation Scheme shall be applicable. DFRC may be issued for physical exports against freely convertible currency / physical exports to SEZ whether against freely convertible currency or non-convertible currency/ supplies effected under paragraph 8.2 of the Policy (except for supplies made to DFRC holder). DFRC may also be issued in respect of physical exports (other than supplies to SEZ) for which payments are received in non-convertible currency. Such exports shall, however, be subject to value addition and conditions as specified in Appendix-11 of Handbook of Procedures (Vol.1). DFRC shall be issued only in respect of products covered under the Standard Input Output Norms as notified by DGFT. However, in respect of Standard Input Output Norms which are subject to "actual user" condition or where the export proceeds have not been realised at the time of filing application or for import of fuel under the general norms, DFRC shall be issued with actual user condition for these inputs. However, for fuel, the import entitlement may be transferred only to the companies which have been granted authorisation to market fuel by the Ministry of Petroleum & Natural Gas.

In cases where Standard Input Output Norms allow import of Acetic Anhydride, Ephedrine and Pseudo Ephedrine, DFRC shall be issued provided these items are specifically deleted from the list of import items. DFRC will not be issued against SION which prescribe a prior import condition for inputs. DFRC shall be issued for import of inputs as per SION as indicated in the shipping bills. The validity of such Authorisations will be governed by the provision stipulated in the handbook (Vol. I). DFRC and or the material(s) imported against it shall be freely transferable. However, DFRC with actual user condition or the material(s) imported against it shall not be transferable. The export products, which are eligible for modified VAT, shall be eligible for CENVAT credit/ service tax credit. However, non excisable, non dutiable or non CENVAT products, shall be eligible for drawback at the time of exports in lieu of additional customs duty to be paid at the time of imports under the scheme. The exporter shall be entitled for drawback benefits in respect of any of the duty paid materials, whether imported or indigenous, used in the export product as per the drawback rate fixed by Directorate of Drawback (Ministry of Finance). The drawback shall however be restricted to the duty paid materials not covered under SION. Jobbing, repairing etc. for re-export Import of goods, including those mentioned as restricted in ITC(HS) but excluding prohibited items, supplied free of cost, may be permitted for the purpose of jobbing without a Authorisation/certificate/ permission as per the terms of notification issued by Department of Revenue from time to time. Similarly, import of goods for carrying out repairs, re-conditioning, re-engineering, testing etc. shall be allowed as per the terms and conditions of the Customs notification even though the goods may be restricted for imports under the Foreign Trade/ITC(HS) Classification of Imports and Exports Book. Termination of the Scheme DFRC Scheme shall be available for exports effected upto 30.4.2006. The procedural aspects of Advance Authorisation Scheme (Erstwhile Advance Licence Scheme) are given in the Handbook of Procedures

Duty Entitlement Pass Book DEPB Secheme.

Duty Entitlement Pass Book Scheme in short DEPB is an export incentive scheme. Notified on 1/4/1997, the DEPB Scheme consisted of (a) Post-export DEPB and (b) Pre-export DEPB. The pre-export DEPB scheme was abolished w.e.f. 1/4/2000. Under the post-export DEPB, which is issued after exports, the exporter is given a duty entitlement Pass Book Scheme at a pre-determined credit on the FOB value. The DEPB rates is allows import of any items except the items which are otherwise restricted for imports. Items such as Gold Nibs, Gold Pen, Gold watches etc. though covered under the generic description of writing instruments, components of writing instruments and watches are thus not eligible for benefit under the DEPB scheme. The DEPB Rates are applied on the basis of FOB value or value cap whichever is lower. For example, if the FOB value is Rs.700/- per piece, and the value cap is Rs.500/- per piece, the DEPB rate shall be applied on Rs.500/-. The DEPB rate and the value cap shall be applicable as existing on the date of exports as defined in paragraph 15.15 of Handbook (Vol.1). DEPB Scheme is issued only on post-export basis and pre/export DEPB Scheme has been discontinued. The provisions of DEPB Scheme are mentioned in Para 4.3 and 4.3.1 to 4.3.5 of the Foreign Trade Policy or Exim Policy. One significant change in the new DEPB Scheme is that in terms of Para 4.3.5 of the Exim Policy even excise duty paid in cash on inputs used in the manufacture of export product shall be eligible for brand rate of duty drawback as per rules framed by Department of Revenue which was not mentioned in the earlier DEPB Scheme. Benefits of DEPB Rates The benefit of DEPB schemes is available on the export products having extraneous material up to 5% by weight. In such cases, extraneous material up to 5% shall be ignored and the DEPB rate as notified for that export product is be allowed. Review of DEPB Rates The Government of India review the DEPB rates after getting the appropriate a export import data on FOB value of exports and CIF value of inputs used in the export product, as per SION. Such data and information is usually obtained from the concerned Export Promotion Councils. Implementation of the DEPB Rates Some additional facilities as listed below have been provided for better implementation of the DEPB Rates

DEPB rates rationalized to account for the changes in Customs duties.

Caps fixed on certain items but there would be no verification of Present Market Value (PMV) on such items. A number of ports have been added for availing facilities under the Duty Exemption Scheme, including DEPB. The threshold limit of Rs. 200 million for fixing new DEPB rates removed.

Provisional DEPB Rate The main objective behind the provisional DEPB rates is to encourage diversification and to promote export of new products. However, provisional DEPB rates would be valid for a limited period of time during which exporter would furnish data on export and import for regular fixation of rates. Maintenance of Record It is necessary for Custom House at ports to maintain a separate record of details of exports made under DEPB Schemes. Port of Registration The exports/imports made from the specified ports given shall be entitled for DEPB. Sea Ports: Mumbai, Kolkata, Cochin, Dahej, Kakinada, Kandla, Mangalore, Marmagoa, Mundra, Chennai, Nhavasheva, Paradeep, Pipavav, Sikka, Tuticorin Vishakhapatnam, Surat (Magdalla), Nagapattinam, Okha , Dharamtar and Jamnagar. Airports: Ahmedabad, Bangalore, Bhubaneshwar Mumbai, Kolkata Coimbatore Air Cargo Complex, Cochin, Delhi, Hyderabad, Jaipur, Srinagar, Trivandrum, Varanasi, Nagpur and Chennai. ICDs : Agra, Ahmedabad, Bangalore, Bhiwadi, Coimbatore, Daulatabad, (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Faridabad, Guntur, Hyderabad, Jaipur, Jallandhar, Jodhpur, Kanpur, Kota, Ludhiana, Madurai and the land Customs station at Ranaghat Mallanpur, Moradabad, Meerut Nagpur, Nasik, Gauhati (Amingaon), Pimpri (Pune), Pitampur (Indore), Rudrapur (Nainital), Salem Singanalur, Surat, Tirupur, Udaipur, Vadodara, Varanasi, Waluj, Bhilwara, Pondicherry ,Garhi-Harsaru, Bhatinda, Dappar, Chheharata (Amritsar), Karur, Miraj and Rewari. LCS: Ranaghat, Singhabad , Raxaul , Jogbani, Nautanva ( Sonauli), Petrapole and Mahadipur. The exports made to the following Special Economic Zones (SEZ) are also entitled to DEPB. SEZ : Santacruz , Kandla, Kochi, Vishakhapatnam, Chennai, FALTA, Surat, NOIDA Credit under DEPB and Present Market Value

In respect of products where rate of credit entitlement under DEPB Scheme comes to 10% or more, amount of credit against each such export product shall not exceed 50% of Present Market Value (PMV) of export product. During export, exporter shall declare on shipping bill that benefit under DEPB Scheme would not exceed 50% of PMV of export product. However PMV declaration shall not be applicable for products for which value cap exists irrespective of DEPB rate of product. Utilization of DEPB credit Credit given under DEPB Schemes is utilized for payment of indian customs duty including capital goods, which are free to import. Re-export of goods imported under DEPB Scheme In case of return of any exported goods, which has been found defective or unfit for use may be again exported according to the exim guidelines as mentioned by the Department of Revenue. In such cases 98% of the credit amount debited against DEPB for the export of such goods is generated by the concerned Commissioner of Customs in the form of a Certificate, containing the amount generated and the details of the original DEPB. On the basis of certificate, a fresh DEPB is issued by the concerned DGFT Regional Authority. It is important to note that the issued DEPB have the same port of registration and shall be valid for a period equivalent to the balance period available on the date of import of such defective/unfit goods.

DEPB Application Eligibility.

Component of Special Additional Duty and indian customs duty on fuel shall also be allowed under DEPB Scheme Rates (as a brand rate) in case of non-a ailment of CENVAT Credit. Neutralization shall be provided by way of grant of duty credit against export product. An exporter may apply for credit, at specified percentage of FOB value of exports, made in freely convertible currency or payment made from foreign currency account ofSEZ unit/ SEZ Developer in case of supply by DTA. Credit shall be available against such export products and at such rates as may be specified by DGFT by way of public notice. Credit may be utilized for payment of a Customs Duty on freely importable items. DEPB holder shall have option to pay additional customs duty in cash as well.

DEPB Application Pocedure for Application.

An application for grant of credit under DEPB Rates may be made to RA concerned in Ayaat Niryaat form ANF 4G along with prescribed documents. Agency commission shall be allowed for DEPB entitlement up to 12.5% of FOB value only. FOB value in free foreign exchange shall be converted into Indian rupees as per exchange rate for exports, notified by Ministry of Finance, as applicable on the date of order of "Let Export" by Customs. In respect of consignment exports wherein exporter has declared FOB value on a provisional basis, exporter shall be eligible for final assessment of such shipping bill based on actual FOB realized upon sale of such goods in freely convertible currency. An application for grant of credit for supplies from DTA to SEZ can be made by DTA unit or SEZ unit. DTA unit may claim benefits either from RA or Development Commissioner concerned. In case claim have been filed with RA, RA while allowing benefits to the DTA unit will simultaneously endorse a copy of communication to concerned Development Commissioner along with details of export documents. In case DTA supplier prefers claim with Development Commissioner, the Development Commissioner will verify Denied Entity List (DEL) status of supplier from DGFT website before allowing DEPB benefits. SEZ unit will file application with Development Commissioner concerned in Ayaat Niryaat Form ANF 4G along with prescribed documents. DEPB Rates shall be issued with transferable endorsement after payment confirmation. In other cases, DEPB Scheme shall be initially issued with non-transferable endorsement and upon realization, can be endorsed as transferable.

DEPB Policy and Procedure for Application and Benifits.

Policy relating to Duty Entitlement Passbook (DEPB) Scheme is given in Chapter-4 of the Indian Foreign Trade Policy. Duty credit under the DEPB scheme shall be calculated by taking into account deemed import content of said export product as per Standard Input Output Norms SION. Fixation of DEPB Rate EPC is the governing body for receiving all applications for the fixation of DEPB rates. Once the applications are submitted, EPC verify the FOB value of exports as well as international price of inputs covered under Standard Input Output Norms SION.

Exports in anticipation of DEPB Rate No exports shall be allowed under DEPB scheme unless DEPB rate of concerned export product is notified. Port of Registration Exports / imports made from specified Sea Ports, Airports, ICD & LCSs given in paragraph 4.19 above of the Foreign Trade Policy. DEPB shall be issued with single port of registration, which will be port from where exports have been effected. Time Period Wherever provisional shipment has been allowed by customs authorities, DEPB against such exports shall be issued only after release of shipping bill by Customs. In such cases, application for DEPB shall be filed within six months from date of release of such shipping bill or six months from date of realization, whichever is later. Frequency of Application All shipping bills in any one application must relate to exports made from one Custom House only. There is no limit on number of shipping bills which can be filed through EDI mode in a single aplication. Verification by Customs Before allowing imports against DEPB, Customs shall verify that details of exports, as given on DEPB, are as per their records. However, in case of EDI shipping bills issued on or after 1-102005 from EDI ports which are being transmitted electronically by Customs to DGFT, DEPBs issued shall be sent to Customs at port of registration through an electronic message exchange system and DEPB shall be registered at port of registration electronically. No verification of shipping bills against which such DEPBs have been issued, will be required before allowing imports against these DEPBs. Re-export of goods imported under DEPB Scheme Goods imported under DEPB scheme, which are found defective or unfit for use, may be reexported, as per guidelines given in paragraph 3.23.6 of HBP v1. Issuance of DEPB and other duty credit certificates against lost EP copy of the Shipping Bills In case where EP copy of Shipping Bill has been lost, DEPB and other duty credit certificates, claim can be considered subject to submission of following documents:

A duplicate / certified copy of Shipping Bill issued by Customs authority in lieu original

An application fee equivalent to 2% of the DEPB or other duty credit entitlement in respect of lost Shipping Bills. However, no fee shall be charged when Shipping Bill is lost by Government agencies and a documentary proof to this effect is submitted; An affidavit by exporter about loss of Shipping Bills and an undertaking to surrender it immediately to concerned RA, if found subsequently; and An indemnity bond by exporter to the effect that he would indemnify Government for financial loss if any on account of DEPB or other duty credit certificate issued against lost Shipping Bills.

Customs authority, before allowing clearance, shall ensure that no DEPB benefit has been availed against same shipping bill. Claim against lost Shipping Bill shall be preferred within a period of six months from date of release of duplicate copy of shipping bill and any application received thereafter will be rejected. However, if a provisionally assessed DEPB shipping bill is lost, time period for filing an application for DEPB would be six months from the date of release of the finally assessed shipping bill. Loss of Original Bank Certificate In such cases where original Bank Realization Certificate (BRC) has been lost, the DEPB claim can be considered subject to submission of following documents:

A duplicate copy of BRC issued by bank authority in lieu of original loss; b) An application fee equivalent to 2% of the DEPB entitlement in respect of lost BRC; An affidavit by exporter about loss of BRC and an undertaking to surrender it immediately to RA, if found subsequently; An indemnity bond by exporter to the effect that he would indemnify Government for financial loss, if any, on account of DEPB issued against lost BRC.

Claim against lost BRC shall be preferred within a period of six months from date of realization and application received thereafter will be rejected. In such cases, where both documents have been lost, exporter shall follow procedure laid down in paragraph 4.52 and 4.53. Time period for such application shall be as per paragraph 4.52 and 4.53, whichever is later.

DEPB General Instructions

The DEPB Rates specified in book shall not be applicable to export of a commodity or product if such commodity or product is:1. Manufactured partly or wholly in a warehouse under Section 65 of the Customs Act, 2.

3.

4. 5.

1962 (52 of 1962). Manufactured and/or exported in discharge of export obligation against an Advance License including Advance License for Annual Requirement or exported under DFRC Scheme of the relevant EXIM Policy. Manufactured and/or exported by a unit licensed as hundred percent export oriented unit interms of the provisions of the relevant Import Policy and Export Policy; Manufactured and/or exported by any of the units situated in free trade zones Export Processing Zone/ Special Economic zones / EHTP Scheme; Exports of goods of foreign origin, unless the goods have been manufactured or reprocessed or on which similar operations have been carried out in India.

DEPB Rates Product Groups and DEPB Items.

The DEPB rates are applicable on the following product categories

61. Engineering Products 62. Chemicals 63. Plastics 64. Leather and Leather Products 65. Sports Goods 66. Fish and Fish Products 67. Food Products 68. Handicrafts 83. Electronics 89. Textiles 90. Miscellaneous Products

DGFT DEPB Rates Notification in India.

Notification Notification No Title Date DGFT Policy Circular No 21-05-2009 Error 96 cases and their online validation under DEPB Scheme 91/2008 Regarding DT.21/05/2009 DGFT Policy Circular No 30-03-2009 76/2008 DT.30/03/2009 DGFT PUBLIC NOTICE No 152/ (RE2008)2004-09 DGFT PUBLIC NOTICE No 130/ (RE2008)2004-09 DGFT PUBLIC NOTICE No 124/ (RE2008)2004-09 DGFT PUBLIC NOTICE No 108/ (RE2008)2004-09 DGFT PUBLIC NOTICE No 38/ (RE-2008)200409 DGFT PUBLIC NOTICE No 24/ (RE-2008)200409 Guidelines for execution of BG/LUT with Regional Authorities for filing application under DEPB scheme and Incentive schemes of Chapter 3 of FTP without the requirement of Bank Realisation Certificate - regarding.

26-02-2009

Additions/Amendments in the Schedule of DEPB Rates.

13-01-2009

Additions/amendments in Schedule of DEPB Rates

03-01-2009

Amendment in the Schedule of DEPB rates.

14-11-2008

Amendments in Schedule of DEPB Rates

02-07-2008

Addition in the Schedule of DEPB Rates

03-06-2008

Amendments in the Schedule of DEPB Rates

02-06-2008

24-04-2008

23-04-2008

17-04-2008

07-04-2008

03-04-2008

27-03-2008

07-02-2008

28-11-2007

30-10-2007 09-10-2007

DGFT PUBLIC NOTICE No 23/ (RE-2008)200409 DGFT Policy Circular No 04/2008, DT 24/04/2008 Corrigendum to Public Notice No.04(RE2008)/2004-09 DGFT PUBLIC NOTICE No 4 (RE 2008) /2004 09 DGFT PUBLIC NOTICE No 140 (RE 2007) /2004 09 DGFT PUBLIC NOTICE No 137 (RE 2007) /2004 09 DGFT PUBLIC NOTICE No 130 (RE 2007) /2004 09 DGFT PUBLIC NOTICE No 109 (RE 2007) /2004 09 DGFT PUBLIC NOTICE No 86 (RE 2007) /2004 09 DGFT PUBLIC NOTICE No 78 (RE 2007) /2004 09 DGFT PUBLIC NOTICE NO 66 (RE 2007)/2004

Amendments in the Schedule of DEPB Rates

Entitlement of DEPB prior to issuance of Public Notice withdrawing the benefit under the Scheme-regarding. Correction to Public Notice No. 4 dated 17.4.2008 related to Schedule of DEPB Rates

Amendments in the Schedule of DEPB Rates

Additions/amendments in the Schedule of DEPB rates.

Amendments in the Schedule of DEPB Rates

Amendments in the Schedule of DEPB Rates

Amendments in the Schedule of DEPB Rates 2004-2009

Amendments/corrections in the DEPB rates.

Amendments in the Hand Book of Procedure (Vol.I), 2004-2009.

Amendments/Corrections in the Schedule of DEPB Rates.

21-08-2007

12-07-2007

09-07-2007

29-09-2006

2009 DGFT PUBLIC NOTICE NO 35 (RE 2007)/2004 2009 DGFT PUBLIC NOTICE NO 17 (RE 2007)/2004 2009 DGFT PUBLIC NOTICE NO 15 (RE 2007)/2004 2009 DGFT PUBLIC NOTICE No 60 (RE 2006)/2004 2009

Amendment/Addition of the entry in the Book titled"Schedule of DEPB rates". Amendments/Additions /Corrections in the Book titled"Schedule of DEPB Rates".

Amendments in the Book titled Schedule of DEPB Rates

Amendments in the Book titled Schedule of DEPB rates (as amended from time to time). Amendments in DEPB rates - Plastics Product - Sr. No. 125 (Double Blood Bag with Tubing) change to (Blood Bags) Amendments in Guidelines - Sub section VC of Aayaat Niryaat Form DEPB application DEPB DGFT Amendments/additions/corrections in the Book titled - Schedule of DEPB rates Amendments/additions/corrections in the Book titled - Schedule of DEPB rates Amendments/corrections in the Book titled Schedule of DEPB rates. Amendments/corrections in the Book titled Schedule of DEPB rates Amendments in DEPB rate schedule

DGFT Public 29-08-2006 Notice No 49/2006 DGFT Public 24-08-2006 Notice No 45/2006 DGFT Public 03-07-2006 Notice No 29/2006 DGFT Public 03-07-2006 Notice No 29/2006

DEPB

DGFT

DGFT PUBLIC NOTICE No 10 18-05-2006 DEPB (RE 2006)/2004 2009 DGFT Public 05-04-2006 Notice No DEPB 96/2005 DGFT Public 27-01-2006 Notice No DEPB 85/2005

DGFT

DGFT

DGFT

DGFT Policy Circular No 10-01-2006 DEPB 44/2005 09, DT 10/01/2006 DGFT Public 26-12-2005 Notice No 77/2005 DGFT Public 13-10-2005 Notice No 62/2005

DGFT

DGFT to make submission of DEPB applications online on 10 more ports from Jan 16, 2006 Amendments /correction in DEPB rates - Forged Crank Shaft & Front Axle Beam Forging Amendments in the DEPB rates Miscellaneous - Product Code : 90 13. Machine Cut Glass Chatons DGFT clubs ports to treat them as single port for export / import & amends Para 4.49 - Electronic verification of DEPB Shipping Bills DEPB message exchange with Customs- regarding Amendments/additions/corrections etc. in the Schedule of DEPB rates Correction in DEPB rates at Fish and Fish Products - Sl. NO. 2 Amendments/additions/corrections etc. in the Schedule of DEPB rates Amendments/additions/corrections etc. in the Schedule of DEPB rates Amendments/additions/corrections etc. in the Schedule of DEPB rates Additions/ corrections/ amendments in the Schedule of DEPB rates Additions/amendments in the

DEPB

DGFT

DEPB

DGFT

DGFT Public 06-10-2005 Notice No 57/2005 DGFT Policy Circular No 28/2005 09, DT 06/10/2005 DGFT Public Notice No 37/2005 DGFT Public Notice No 23/2005 DGFT Public Notice No 12/2005 DGFT Public Notice No 12/2005 DGFT Public Notice No 12/2005 DGFT Public Notice No 66/2004 09 DGFT Public Notice No

DEPB

DGFT

06-10-2005

DEPB

DGFT

09-08-2005

DEPB

DGFT

20-06-2005

DEPB

DGFT

26-05-2005

DEPB

DGFT

26-05-2005

DEPB

DGFT

26-05-2005

DEPB

DGFT

30-03-2005 21-03-2005

DEPB DEPB

DGFT DGFT

62/2004 09 DGFT Public 22-02-2005 Notice No 56/2004 09 DGFT Public 30-12-2004 Notice No 39/2004 09 DGFT Public 01-12-2004 Notice No 27/2004 09 DGFT Public 23-11-2004 Notice No 25/2004 09 DGFT Public Notice No 10/2004 09 DGFT Public Notice No 07/2004 09 DGFT Public Notice No 05/2004 09 DGFT Public Notice No 03/2004 09

DEPB rates DEPB DGFT Correction in the Book titled Schedule of DEPB rates. Amendments in DEPB rates for Textile product Group Amendments/additions/corrections in DEPB rates realted to Engineering product group New DEPB rates for Plastics products and corrections in Engineering product group Related to DEPB rates for Fish products Amendments/ additions / corrections in DEPB rates Utilisation of DEPB credit in case of import of Edible oil Amendments and Corrections in Schedule of DEPB rates

DEPB

DGFT

DEPB

DGFT

DEPB

DGFT

29-09-2004

DEPB

DGFT

23-09-2004

DEPB

DGFT

16-09-2004

DEPB

DGFT

14-09-2004

DEPB

DGFT

W DEPB Rates Scheduled Issues by DGFT India.

GENERAL INSTRUCTIONS FOR DEPB RATES 1. The rates of DEPB specified in book shall not be applicable to export of a commodity of product if such commodity or product is:-

a. Manufactured partly or wholly in a warehouse under Section 65 of the Customs Act, 1962 (52 of 1962); b. Manufacture and/or exported in discharge of export obligation against an Advance Autorisation including Advance Authorisation for Annual Requirement or exported under DFIA Scheme of the relevant Foreign Trade Policy; c. Manufacture and/or exported by a unit licenced as 100% Export Oriented Unit in terms of the provisions of the relevant Foreign Trade Policy; d. Manufactured and /or exported by any of the units situated in Free Trade Zones/Export Processing Zone/Special Economic Zones/EHTP Scheme; e. Exports of goods of foreign origin, unless the goods have been manufactured or processed or on which similar operations have been carried out in India; f. Exports made under paragraph 2.35 and 2.36 of the Foreign Trade Policy. 2. The DEPB rate and the value cap shall be applicable as existing on the date of order of let export by the Customs. 3. The value cap, wherever existing, shall be with reference to the FOB value of exports. The DEPB rates shall be applied on the FOB value or value cap whichever is lower. For example, if the FOB value is Rs.500/- per piece, and the value cap is Rs.300/- per piece, the DEPB rate shall be applied on Rs.300/-. 4. Wherever any specific rate exists for a particular item under DEPB rate list as given in this book, the items shall not be covered under any generic description of the DEPB rate list. 5. The DEPB rate aims to neutralize the incidence of duty on the inputs used in the export product. Therefore, the DEPB rates, as given in this book refer to normally tradable/exportable product. Items such as Gold Nibs, Gold Pen, Gold watches etc. though covered under the generic description of writing instructions, components of writing instruments and watches are thus not eligible for benefit under the DEPB scheme. 6. The DEPB rates given for various galvanized Engineering product shall cover non galvanised products and vice-a-versa. 7. The DEPB rate given for various types of garments do not cover Silk as well as Woolen garments unless specifically mentioned in the DEPB description. 8. Portable product at S.No.239, 240,241,242,243 and 286 of Product Group: Engineering (Product Code 61) exported in the form of incomplete CKD/SKD Kit, but consisting of (i) Engine (ii) Chassis (iii) Gear Box (iv) Transmission Assembly system (v) Axle (Front & Rear) and (vi) Suspension System or Body/Cab or both, shall be treated at par with complete CKD/SKD Kit for the purpose of relevant DEPB benefits. 9. The DEPB rate for formulation consisting of more than one bulk drug would be calculated as per provisions of Policy Circular No.20 dated 31st July, 2000. 10. Wherever the export of resultant product in completely built form is allowed under DEPB, the CKD/SKD export of such product shall also be allowed under DEPB. 11. DEPB benefit would also be admissible on the export of composite product including assembled product having more than one constituent items for which DEPB rates are individually fixed. In such cases, the DEPB entitlement would be restricted to the lowest of the rate applicable to the constituent items,

ignoring the rate of the constituent item(s) having weight less than 5% of the total net weight of such product. However, no DEPB benefit would be admissible on the exportof such product, if constituent item(s) is weighing more than 5% of the total net weight (of the product) and does not have any DEPB rate fixed. The exporters shall declare in the shipping bill the following details also for claiming DEPB benefit on the export of such product: i. Description of the composite product including the assembled product, alongwith its total net weight. ii. Description of all the constitute item(s) of such products which attract a DEPB rate with their respective DEPB Nos. and their credit rate alongwith total weight of such constituent (s). iii. Description and combined total weight of those constituent item(s) which have no DEPB rate in the schedule. (Explanatory Note) : In case (iii) above is more than 5% of total weight given in (i), no DEPB on the composite product would be admissible. 12. DEPB benefit would be available on the export of products having extraneous material upto 5% by weight. In such cases, extraneous material upto 5% shall be ignored and the DEPB rate as notified for that export product shall be allowed 13. 14 year old Duty Entitlement Pass Book ( DEPB ) is abolsihed from 1st October 2011 and those items on which DEPB was allowed are shifted to Duty Drawback Scheme . Thus, Centre has now enhanced numbers of items under Duty Drawback to 4000 items . 14. The move to scrap the DEPB is considered non-compatibility with Indias obligations at the World Trade Organisation (WTO). DEPB scheme was on ventilation since 2005, finally scrapped it from October 1. Presently, there are 2,130 items under DEPB that are allowed refunds on import duty paid on those items manufacture for export purposes. 15. Under duty drawback scheme an equal amount is spent as tax refunds, Central Board of Excise and Customs chairman Sumit Dutt Majumder said, adding the revenue foregone with the withdrawal of DEPB would be less. The notification of the new rates will be issued in the next few days. 16. Of the 1,100 items being shifted to DDS, there would be a ceiling of 5.5 per cent tax refund rate on 660 items. However, the ceiling would not apply to 340 items including worsted woolen yarn, blanket, nylon twine, cut polished chat stones, polyester metallised film. 17. Though exports have shown a remarkable performance, growing by 54.2 per cent between April-August 2011 to $134.5 billion, there are concerns that the momentum may not be sustained in the wake of economic crisis in US and Europe . 18. A top Finance Ministry Official said while there would be a minor reduction in duty drawback rates for most items, due care has been taken to ensure that the reduction is capped at 10 per cent of the existing duty drawback rates.

19. He also said government has decided to provide a smooth transition for the 1100 DEPB items while incorporating these in the drawback schedule. As a transitory arrangement, these items will suffer a modest reduction in the existing DEPB rates to the extent of 1-3 per cent.