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Regarding re-export of goods imported under DEPB Scheme found unfit for
consumption
Circular No. 75 dated 11th September 2000
Certain export promotion councils and individual
exporters have brought to the notice of the Board that in certain situations the
goods imported under DEPB Scheme are found unfit for consumption either because
they do not meet the required quality specifications or that the goods cannot
perform the function for which they were imported. In such cases, the goods
necessarily have to be re-exported and the ground for re-export is well beyond
the importer's control.
2. The issue was
also brought to the notice of DGFT who have now issued their Public Notice No.
16 (RE-00)/ 1997-2002 dated 30/ 6/ 2000 in this regard.
3. The issue was
examined in the Board in consultation with DGFT and it has been decided that in
those cases where goods imported under DEPB Scheme have to be re-exported
because the imported goods are found defective or unfit for use, Commissioner of
Customs may permit re-export and grant a DEPB Credit Entitlement Certificate to
the exporter. This Certificate shall be for DEPB credit equal to 98% of the DEPB
credit which was debited at the time of import of goods into India, provided
that:
i)
Re-export shall take place from the same port as the port of import;
ii)
The goods are re-exported within 6 months from the date of import;
iii)
The Asstt. Commissioner/ Dy. Commissioner of Customs is satisfied as
regards the identity of the goods.
iv) The goods have not been
used after import. However, where it is possible to segregate the used goods
from the goods, which have not been used, re-export of unused goods, may be
permitted and a certificate for proportionate DEPB benefit issued to the
exporter.
4. However, in case
the goods had been imported for trading purpose under the DEPB Scheme, their
re-export shall be allowed as per this Circular only if the said goods are found
to be unfit for use because of manufacturing defects.
5. The fresh DEPB
scrip issued by the Regional Licensing Authority on the basis of the said DEPB
Credit Entitlement Certificate shall have the same port of registration as the
original DEPB scrip, which was utilised at the time of clearance of imports.
However, it can be used at the same port or at any other port through TRA
facility in accordance with Board's instructions regarding issue of TRA amongst
various ports under DEPB Scheme.
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