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[M.F. (D.R.) Circular No. 39/99-Cus., dated 25/6/1999]

Drawback – Extension of Board Rate of Drawback Scheme to export under DEPB Scheme – Reimbursement of Additional Customs Duty (CVD) paid in cash on imported inputs and Excise Duty paid on indigenous inputs in export goods.

Various representations have been received from Trade/Exporters that wherever final goods exported by them are liable to compounded levy of Central Excise duty, in such cases the exporter are unable to avail of Modvat Credit of additional customs duty (CVD) paid in cash on imported inputs, or excise duty paid on indigenous inputs, utilised in the production of export goods; and thus the duties suffered by them are not fully compensated to them at the time of export. Such situation presently pertains to steel re-rolling industry (Notification No. 33/97-Cus., dated 1/8/1997 refers) and processed fabrics [Notification No. 36/98-C.E., dated 10/12/1998 and 44/98-C.E. (N.T.), dated 10/12/1998 refer].

2. In view of the above, the issue has been examined in the Board and it has been decided that the exports made under DEPB Scheme of those products which cannot avail Modvat credit of the additional duty of Customs (CVD) paid in cash on imported inputs, or excise duty paid on indigenous inputs, will be eligible for payment of Board Rate of Drawback to be fixed by the Directorate, of Drawback against additional customs duty/excise duty suffered on inputs, on submission of proof pr payment of duty. This will be applicable to exports of re-rolled steel products which are covered under Notification No. 3/97-C.E., dated 1/8/1997 and processed fabrics, which are covered by Notification No. 44/98-C.E. (N.T.), dated 10/12/1998.

3. Circular No. 68/97-Cus., dated 2/12/1997 shall stand amended as above. Other provisions of the circular shall be applicable to the products considered herein.

[M.F. (D.R.) Circular No. 38/99-Cus., dated 25/6/1999]

DEPB Scheme – Facility for permitting imports under DEPB Scheme at various Ports/Airports/ICDs through TRA Procedure

Please refer to Board’s Circular No. 10/97-Cus., dated 17/4/1997 and 28/97-Cus., dated 30/7/1997 regarding DEPB Scheme and TRA facility thereunder.

2. Para 6 of Circular No. 10/97-Cus. Provided that, under DEPB Scheme, imports and exports can be undertaken only from the port of registration of the DEPB scrip. This condition was relaxed by issue of Circular No. 28/97-Cus. Ot permit imports from Delhi, Mumbai, Calcutta and Chennai, for DEPB Scrips registered at anu of these ports. Further relaxation were provided by later circulars.

3. Reference various other Ministries our field formations, as well as representations from various exporters organisations have been received for general relaxation of TRA facility, under DEPB Scheme, to permit imports at all ports etc.

4. The issue has been examined in the board in regard to the exporties and facility of assesment available at various Ports/Airports/ICDs and it has been decided that the DEPB holders whose DEPB scrips are registered at any of the following Sea-ports/Airports/ICDs may be allowed to import goods at any of the following Sea-ports/Airports/ICDs :-

Sea-ports at Mombai, Calcutta, Cochin, Kandla, Mangalore, Marmugao, Chennai, Nhave Sheva, Kakinada, Visakhapatnam, Haldia, Tuticorin, Paradeep, Sikka, Pipavav and Hazira.

Airports at Ahmedabad, Bangalore, Mumbai, Calcutta, Delhi, Hyderabad, Chennai and Coimbatore, and

ICDs at Bangalore, Delhi, Morabad, Ludhiana, Hyderabad, Agra, Faridabad, Guntur, Surat, Ahmedabad, Kanpur, Pitampur, Malanpur, Nagpur, Varanasi, Jaipur, Jodhpur, Coimbatore, Tirupur, Salem and Singanallur.

5. In addition to the facility provided in para 4 above,

ICD, Nagpur, CFS, Nagpur and Nagpur Airport will be treated as a single port.

ICD, Varanasi and Air Cargo Complex, Varanasi will be treated as a single port.

To clarify the distinction between para 4&5 above, as an example, for a DEPB scrip registered at C.F.S. Nagpur, import can be made at anu of the ports mentioned in para 5(I) above but not at ports mentioned in para 4 and 5(II), and vice-versa.

6. This facility is only applicable to imports and not to exports. In respect of other ports, the DEPB holders must import at the same port where the DEPB book is registered.

7. This Circular supersedes all earlier circulars issued on this subject.

8. The aforesaid facility will be operated by issue of Telegraphic Release Advice (TRA) from the port of registration to the Custom House at which the goods are being imported, indicating the details of description, value and quantity of the goods. The DEPB serial number, date of issue and the extent of duty entitlement in the DEPB book/scipr also must be indicated in TRA, to facilitate imports against relevant DEPB scrips. The Customs House receiving the TRA will send details of imports to the Customs House issuing the TRA who will keep these details in the register.

[M.F. (D.R.) Circular No. 37/99-Cus., dated 24/6/1999]

Present Market Value (PMV) under DEPB Scheme – Revised guidelines for determination/verification of the Present Market Value (PMV) under DEPB Scheme

Attention is invited to Circular No. 69/97-Cus., dated 8/12/1997 as amended by Circular No. 79/98-Cus., 22/10/1998 and Circular 23/99-Cus., dated 11th May, 1999.

2. Para 7.36A of the Handbook of Procedure, Vol. I pertaining to current Exim Policy has been amended vide DGFT’s Public Notice No. 10(RE-99)/1997-2002,dated 7th June, 1999 to the effect of DEPB credit entitlement, n respect of export products whose DEPB rate is 10% or more, shall not exceed 50% of the PMV of the goods.

Accordingly, the PMV of all products exported under DEPB Scheme, wherever, the DEPB rate is 10% or more will need to be varified by the Customs House Circular Nos. 15/97-Cus., dated 3/6/1997 and 69/97-Cus., dated 8/12/1997 shall stand amended to this extent.


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