Differences of these export benefits ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2016 Dear Sir

You are requested to please share the few major differences on these beautifies.

1.) What is major difference between DFIA & Advance authorization ?
2.) What is major difference between DEEMED EXPORT and THIRD PARTY EXPORT ?
3.) Which product is eligible to get DEPB credit ?

rgds
Suraj Sharma
Ballarpur Industries Ltd.

Dr.RAMAKRISHNA. C

Dr.RAMAKRISHNA. C (Expert)
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06 September 2016 1. The Duty Exemption Scheme consists of Advance Authorization (AA) and Duty Free Import Authorization ( DFIA). The broad differences between the Authorizations. AA is issued for import of inputs at Zero duty (para 4.03 and 4.14 of current FTP 2015-20. It is granted prior to the completion of export obligation. The initial export obligation period is 18 months the minimum value addition (VA) required to be achieved is 15%. It is subject to actual user condition even after discharge of export obligation. On the other hand DFIA is issued for inputs from exemption of only basic customs duty after discharge of export obligation. The DFIA shall be granted only where Standard Input-Ouput Noms (SION ) are available. The minimum value addition (VA) of 20% shall be required to be achieved. The DFIA is transferable- DFIA or Goods imported under it are transferable. The validity of DFIA is 12 months from the date of issue.

2. “Deemed Exports” refer to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in free foreign exchange. Supply of goods as specified in Paragraph 7.02 of the current Foreign Trade Policy 2015-20 shall be regarded as “Deemed Exports” provided goods are manufactured in India.
"Third-party exports" means exports made by an exporter or manufacturer on behalf of another exporter(s).
In such cases, export documents such as shipping bills shall indicate name of both manufacturing exporter manufacturer and third party exporter(s). Bank Realisation Certificate, Self Declaration Form (SDF), export order and invoice should be in the name of third party exporter.

3. Duty Entitlement Pass Book (DEPB) doesnot exists any more.

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