Date: |
04-08-2016
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Notification No: |
Trade Notice No. 13/2016
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Issuing Authority: |
DGFT
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Type: |
Trade Notice
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File No: |
F. No. 01/61/180/317/AM16/PC-3 |
Subject: |
VKGUY benefits on export of grapes including packing material-reg.
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Government Of India
Ministry Of Commerce & Industry
Department Of Commerce
Directorate General Of Foreign Trade
Udyog Bhawan, New Delhi
Trade Notice No. 13/2016
Dated 04.08.2016
To
- All IEC Holders
- All EPCS
- All Chambers Of Trade And Industry
- Federation Of Indian Export Organisations
- Grape Exporters Association Of India (Gen), Nasik, Maharashtra
- All RA'S Of DGFT
Subject : VKGUY benefits on export of grapes including packing
material - reg.
DGFT has received representations from Grape Exporters Association of India
stating that the grape exporters are importing durable containers under the
re-export notification 109/94-Cus. The re-export of such containers happen as it
is used as packing materials for export of grapes. The value of these
re-exported containers gets included in the FOB value of grapes and is taken
into account for VKGUY benefits.
2. A view was taken by few field formation of DOR that the value of packing
material which was imported should be deducted from FOB value of grapes for the
purpose of granting VKGUY benefits under FTP 2009-14 and the grape exporters
should pay back a part of the export benefits availed by them under Duty
Drawback and VKGUY schemes as imported material used for packing grapes and
shown as re-exported is not eligible for the incentives in terms of Para
3.17.2(ii) of FTP 2009-14.
3. The matter has been examined in consultation with Drawback Directorate of
DOR. It is, hereby, clarified that grapes packed in imported packing material do
not fall under ineligible category mentioned under para 3.17.2(ii) of FTP and,
therefore, exporter is entitled for VKGUY benefit on FOB value i.e. without
deducting the cost of imported packing material. As regards All Industry Rates
of duty drawback on export of grapes, when packed in duty free imported punnets
(packing material), CBEC has separately clarified the issue to their field
formations.
(Shobhit Gupta)
Deputy Director General Of Foreign Trade
e-mail : [email protected]
(Issued from F. No. 01/61/180/317/AM16/PC-3 )
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