Date: |
07-11-2008 |
Subject: |
New DEPB Rates General Instructions and amended DEPB Rates released on 5-11-2008 |
GENERAL INSTRUCTIONS FOR DEPB RATES
- 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.
- The DEPB rate and the value cap shall be applicable as existing on the date
of order of “let export” by the Customs.
- 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/-.
- 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.
- 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.
- The DEPB rates given for various galvanized Engineering product shall cover
non galvanised products and vice-a-versa.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
Source : DGFT PUBLIC NOTICE No 102/ (RE-2008)2004-09, dated05-11-2008
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