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Regarding Debiting the Element of SAD in DEPB Scrips
Customs
Circular No. 39 dated 2nd July 2002
After
announcement of 2002-2007 EXIM Policy, one of the Customs Notifications issued
by Department of Revenue is notification No. 45/2002-Customs dated 22.4.2002
which has been issued to operationalise DEPB Scheme as contained in the new EXIM
Policy. Whereas the Earlier Customs Notification No. 34/97-Cus, dated 7.4.1997
issued under DEPB Scheme did not require debiting the element of SAD in the DEPB
Scrip for availing SAD exemption, 45/2002 makes it mandatory to debit the
element of SAD in the DEPB scrip for the purpose of availing SAD exemption or
goods cleared against DEPB Scrips. Para 2.3 of DOR Circular No. 24/2002-Cus,
dated 6.5.2002 also refers in this regard.
2.
After 1.4.2002 DGFT Authorities have issued DEPB Scrips. Scrutiny of
these scrips reveal that whereas some DEPB Scrips, where export had taken place
prior to 1.4.2002 have been issued under 2002-2007 EXIM Policy, cases where
exports have taken place on or after 1.4.2002, DEPB Scrips have been issued
under 1997-2002 EXIM Policy. This has created confusion in the minds of customs
field officers as well as trade as to which DEPB Scrip will be governed by which
Exim Policy and whether the element of SAD will be required to be debited in it.
3.
In order to sortout this problem, the matter was discussed between
officials of DOR and DGFT. The dividing line for issue of a DEPB Srips under a
particular policy is the �let export date� of the Shipping Bill. In all
cases where �let export date� is prior to 1.4.2002, such exports under DEPB
Scheme would be governed by 1997-2002 EXIM Policy and Customs Notification No.
34/97-Cus. In respect of such DEPB Scrips, exemption from SAD would be available
without the requirement of debiting the element of SAD in DEPB Scrips, Similary
in all cases where let export date is on or after 1.4.2002, such exports shall
be governed by 2002-2007 EXIM Policy and customs notification No.45/2002. Hence
in respect of such scrips, SAD exemption would be available subject to debiting
the DEPB Scrips for the elements of SAD.
4.
DGFT Authorities have also issued Public Notice No. 14/2002-07 dated
31.5.2002 to clarify the position.
5.
Corresponding trade notice and standing orders for the information and
guidance of trade and field officers may respectively be issued.
6.
Receipt of this Circular may kindly be acknowledged.
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