Depb and vkuy scheme
This query is : Resolved
05 August 2011
what is Duty drawback and its procedure and VKUY scheme and its procedure for the export house(unit).
05 August 2011
Duty drawback IS A rebate on taxes or duty paid for imported goods which are subsequently exported in the same form or a different form.
In other words import duties or taxes repaid by a government in whole or in part, when the imported goods are re-exported or used in the manufacture of exported goods.
There are two types of drawback. One is called drawback under Section 74 of the Customs Act, 62 which allows drawback of duty paid on goods originally imported on payment of duty and subsequently re-exported. The manner and time limit for filing the claims are governed by "Re- export of Imported Goods (Drawback of Customs duties) Rules, 1995.
1. The other scheme is payment of drawback under Section 75 and Rules made thereunder at specified rated on export of goods manufactured in India. The manner and time limit for filing the claims are prescribed under the Customs and Central Excise Duties Drawback Rules 1995 as amended from time to time.
2. The Central government notifies the Drawback rates for various products either on a general basis (all industry rates) or for individual exporters( brand rates) as the case may be. Drawback sanctioned under section 75 has a two tier system involving (i) fixation of rates by the Directorate of Drawback in the Central Board of Excise and Customs and (ii) disbursement of drawback amount by the Customs Houses and/ Central Excise Commissionerate
DUTIES REBATED UNDER DRAWBACK SCHEME .
PROCEDURE FOR CLAIMING DRAWBACK ON EXPORT OF BAGGAGE UNDER SECTION 74
If duty paid goods are to be exported as baggage under claim for drawback, a Formal declaration has to be filed by the passenger which is deemed to be an entry for export and thereupon an order permitting clearance of the goods for export is made by proper officer. The following procedure to be followed
Passengers intending to re-export goods imported and cleared as baggage item under a claim for drawback of duty should furnish with Supdt. of Customs Airport, a declaration in the prescribed FORM, in duplicate. Passengers should also produce at the time of re-export of the goods duty payment documents relating to goods cleared by them as baggage.
The goods are examined by the Supdt. of Customs and on being satisfied with the identity of the goods he will permit export and also recommend drawback of duty due on the goods by making suitable endorsement on the examination and also make a suitable note on the duty payment documents produced by the passengers.
The duplicate copy of the declaration cum examination export along with duty payment document is returned to the passenger and the original copy transmitted to the Asst./Deputy Commissioner drawback Section.
If the payment is to be made to a person other than the passenger, an authority letter as included in the declaration FORM should be furnished by the passenger duly authenticated before the Supdt. Customs: a pre – receipt on a revenue stamp should also be tendered by him.
The passenger or his authorised agent should file his/her drawback claim along with the copy of the declaration at (a) above and the duty payment document the office of the Asst./ Deputy Commissioner of Customs, Drawback Section. The cheque granted as draw back of duty is sent to the specified address.
PROCEDURE FOR CLAIMING DRAWBACK ON GOODS EXPORTED BY POST UNDER SECTION 74:
Where goods are to be exported by post under a claim for drawback, the outer packing carrying the address of the consignee shall also carry in bold letters the words "DRAWBACK FOR EXPORTS". The exporter shall deliver to the Postal Authorities along with the parcel or package a claim in the FORM in quadruplicate duly filled in.
The date of receipt of the aforesaid claim FORM by the proper officer of Customs from the postal Authorities shall be deemed to be date of filing of drawback claim by the exporter for the purpose Section 75 A. . The proper officer of Customs shall give an intimation of the same to the exporter in the prescribed form.
In case the aforesaid claim for is not complete in all respects, the exporter shall be informed of the deficiencies therein within fifteen days of its receipt from postal authorities by a deficiency memo in the prescribed FORM and such claim shall be deemed not to have been received.
When the exporter complies with the requirements specified in the deficiency memo, within thirty days of receipt of the deficiency memo, he shall be issued an acknowledgement by the proper officer in the prescribed FORM. The date of acknowledgement shall be deemed to be date of filing the claim for the purpose of Section 75A.
DRAWBACK UNDER SECTION 75 OF THE CUSTOMS ACT 1962
This is an export promotion incentive payable for goods manufacture in India with duty paid inputs whether indigenous or imported.
vkguy:-
Vishesh Krishi Gram and Upaj Yojana (VKGUY)
The objective of the Vishesh Krishi Gram Upaj Yojana (VKGUY) is to promote exports of:
a) Agricultural produce and their Value added products;
b) Minor Forest Produce and their value added variants;
c) Gram Udyog Products;
d) Forest Based Products
Duty scrip benefits are granted with aim to compensate high transport costs. Exporters of notified products shall be entitled for duty credit scrip equivalent to 5.00% of the FOB value of exports. The scrip and the items imported against it would be freely transferable.
All Status Holders shall be incentivised with duty credit script equal to 10% of FOB value of agricultural exports which can be used for duty free import / procurement of capital goods related to infrastructure meant for agro-processing to promote agricultural exports.
Under the Scheme, export of such products as specified in the Handbook of Procedures (Vol. I) shall qualify for export benefits with certain exceptions as outlined.
The Duty Credit may be used for import of inputs or goods including capital goods, provided the same is freely importable under ITC (HS).
Exporters shall have the option to apply for benefit either under the Focus Market Scheme or under the Focus Product Scheme or under Vishesh Krishi and Gram Udyog Yojana in respect of the same exported product/s.
for more info see Appendix 37A - List of Export Items allowed under VKGUY Scheme
depb:-
The objective of Duty Entitlement Pass Book (DEPB) is to neutralise the incidence of Customs duty on the import content of the export product. The neutralisation shall be provided by way of grant of duty credit against the export product. Under the DEPB, an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency.
DEPB SCHEME IS TILL 30.09.2011 AS PER NOTIFICATION OF DGFT.
PROCEDURE :-
TAKING THE DIGITAL KEY AFTER LOGIN E- FILING WE SUBMIT THE FILE IN DGFT WEBSITE.
In other words import duties or taxes repaid by a government in whole or in part, when the imported goods are re-exported or used in the manufacture of exported goods.
There are two types of drawback. One is called drawback under Section 74 of the Customs Act, 62 which allows drawback of duty paid on goods originally imported on payment of duty and subsequently re-exported. The manner and time limit for filing the claims are governed by "Re- export of Imported Goods (Drawback of Customs duties) Rules, 1995.
1. The other scheme is payment of drawback under Section 75 and Rules made thereunder at specified rated on export of goods manufactured in India. The manner and time limit for filing the claims are prescribed under the Customs and Central Excise Duties Drawback Rules 1995 as amended from time to time.
2. The Central government notifies the Drawback rates for various products either on a general basis (all industry rates) or for individual exporters( brand rates) as the case may be. Drawback sanctioned under section 75 has a two tier system involving (i) fixation of rates by the Directorate of Drawback in the Central Board of Excise and Customs and (ii) disbursement of drawback amount by the Customs Houses and/ Central Excise Commissionerate
DUTIES REBATED UNDER DRAWBACK SCHEME .
PROCEDURE FOR CLAIMING DRAWBACK ON EXPORT OF BAGGAGE UNDER SECTION 74
If duty paid goods are to be exported as baggage under claim for drawback, a Formal declaration has to be filed by the passenger which is deemed to be an entry for export and thereupon an order permitting clearance of the goods for export is made by proper officer. The following procedure to be followed
Passengers intending to re-export goods imported and cleared as baggage item under a claim for drawback of duty should furnish with Supdt. of Customs Airport, a declaration in the prescribed FORM, in duplicate. Passengers should also produce at the time of re-export of the goods duty payment documents relating to goods cleared by them as baggage.
The goods are examined by the Supdt. of Customs and on being satisfied with the identity of the goods he will permit export and also recommend drawback of duty due on the goods by making suitable endorsement on the examination and also make a suitable note on the duty payment documents produced by the passengers.
The duplicate copy of the declaration cum examination export along with duty payment document is returned to the passenger and the original copy transmitted to the Asst./Deputy Commissioner drawback Section.
If the payment is to be made to a person other than the passenger, an authority letter as included in the declaration FORM should be furnished by the passenger duly authenticated before the Supdt. Customs: a pre – receipt on a revenue stamp should also be tendered by him.
The passenger or his authorised agent should file his/her drawback claim along with the copy of the declaration at (a) above and the duty payment document the office of the Asst./ Deputy Commissioner of Customs, Drawback Section. The cheque granted as draw back of duty is sent to the specified address.
PROCEDURE FOR CLAIMING DRAWBACK ON GOODS EXPORTED BY POST UNDER SECTION 74:
Where goods are to be exported by post under a claim for drawback, the outer packing carrying the address of the consignee shall also carry in bold letters the words "DRAWBACK FOR EXPORTS". The exporter shall deliver to the Postal Authorities along with the parcel or package a claim in the FORM in quadruplicate duly filled in.
The date of receipt of the aforesaid claim FORM by the proper officer of Customs from the postal Authorities shall be deemed to be date of filing of drawback claim by the exporter for the purpose Section 75 A. . The proper officer of Customs shall give an intimation of the same to the exporter in the prescribed form.
In case the aforesaid claim for is not complete in all respects, the exporter shall be informed of the deficiencies therein within fifteen days of its receipt from postal authorities by a deficiency memo in the prescribed FORM and such claim shall be deemed not to have been received.
When the exporter complies with the requirements specified in the deficiency memo, within thirty days of receipt of the deficiency memo, he shall be issued an acknowledgement by the proper officer in the prescribed FORM. The date of acknowledgement shall be deemed to be date of filing the claim for the purpose of Section 75A.
DRAWBACK UNDER SECTION 75 OF THE CUSTOMS ACT 1962
This is an export promotion incentive payable for goods manufacture in India with duty paid inputs whether indigenous or imported.
vkguy:-
Vishesh Krishi Gram and Upaj Yojana (VKGUY)
The objective of the Vishesh Krishi Gram Upaj Yojana (VKGUY) is to promote exports of:
a) Agricultural produce and their Value added products;
b) Minor Forest Produce and their value added variants;
c) Gram Udyog Products;
d) Forest Based Products
Duty scrip benefits are granted with aim to compensate high transport costs. Exporters of notified products shall be entitled for duty credit scrip equivalent to 5.00% of the FOB value of exports. The scrip and the items imported against it would be freely transferable.
All Status Holders shall be incentivised with duty credit script equal to 10% of FOB value of agricultural exports which can be used for duty free import / procurement of capital goods related to infrastructure meant for agro-processing to promote agricultural exports.
Under the Scheme, export of such products as specified in the Handbook of Procedures (Vol. I) shall qualify for export benefits with certain exceptions as outlined.
The Duty Credit may be used for import of inputs or goods including capital goods, provided the same is freely importable under ITC (HS).
Exporters shall have the option to apply for benefit either under the Focus Market Scheme or under the Focus Product Scheme or under Vishesh Krishi and Gram Udyog Yojana in respect of the same exported product/s.
for more info see Appendix 37A - List of Export Items allowed under VKGUY Scheme
depb:-
The objective of Duty Entitlement Pass Book (DEPB) is to neutralise the incidence of Customs duty on the import content of the export product. The neutralisation shall be provided by way of grant of duty credit against the export product. Under the DEPB, an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely convertible currency.
DEPB SCHEME IS TILL 30.09.2011 AS PER NOTIFICATION OF DGFT.
PROCEDURE :-
TAKING THE DIGITAL KEY AFTER LOGIN E- FILING WE SUBMIT THE FILE IN DGFT WEBSITE.
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