[M.F. (D.R.) Circular
No. 39/99-Cus., dated 25/6/1999]
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.
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]
Facility for permitting imports under DEPB Scheme at various Ports/Airports/ICDs
through TRA Procedure
Please refer to Boards
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,
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),
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
2. Para 7.36A of the
Handbook of Procedure, Vol. I pertaining to current Exim Policy
has been amended vide DGFTs 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.