DEPB VS Duty Drawback

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2011 Dear Sir,

As you aware DEPB scheme will be discontinued by 30th June 2011, now exporter have only option that is Duty Drawback. I would be grateful if you could tell me difference in DEPB and Duty Drawback, also would like to know the difference in benefits for both the schemes which are available for the exporters .

Also I am looking for duty drawback rate schedule.

Look forward for your valuable guidance.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

23 May 2011 DEAR AUTHOR,

BEFORE SOME DAY AGO FINANCE SECRATARY MR. MITRA ANNOUNCE THE SAID MATTER BUT NOT ANY NOTIFICATION ISSUED BY DGFT TILL DATE.

DEPB stands for Duty Entitlement Pass Book. It is a scheme which is offered by the Indian government to encourage exports from the country.

DEPB means Duty Entitlement Pass Book to neutralise the incidence of basic and special customs duty on import content of export product. This is provided by way of grant of duty credit against the export product at specified rates. The DEPB Scheme which was notified on 1/4/1997 consisted of (a) Post-export DEPB and (b) Pre-export DEPB. The pre-export DEPB scheme was abolished w.e.f. 1/4/2000. Under the post-export DEPB, which is issued after exports, the exporter is given a duty entitlement Pass Book at a pre-determined credit on the FOB value. The DEPB allows import of any items except the items which are otherwise restricted for imports.

VALIDITY:-24 MONTH

Read more: https://www.depb.net/

Various schemes like EOU, SEZ, DEEC, manufacture under bond etc. are available to obtain inputs without payment of customs duty/excise duty or obtain refund of duty paid on inputs. In case of Central Excise, Manufacturers can avail Cenvat credit of duty paid on inputs and utilise the same for payment of duty on other goods sold in India, or they can obtain refund. Schemes like manufacture under bond are also available for customs. Manufacturers or processors who are unable to avail any of these schemes can avail ‘duty drawback’. Here, the excise duty and customs duty paid on inputs is refunded to the exporter of finished product by way of ‘duty drawback’. Section 75 of Customs Act provide for drawback on materials used in manufacture or processing of export product. Section 37 of Central Excise Act allows Central Government to frame rules for purpose of the Act. Under these powers, ‘Customs and Central Excise Duties Drawback Rules, 1995’ have been framed.

It may be noted that duty drawback under section 75 is granted when imported materials are used in the manufacture of goods which are then exported, while duty drawback under section 74 is applicable when imported goods are re-exported as it is and article is easily identifiable.

DRAWBACK RATES:-
https://www.eximguru.com/drawback-rates/default.aspx

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