Duty drawback
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 May 2012
Dear Sir,
Can we take benifit of Duty Drawback for Local Purchase Item used in sale of export.
Can we take benifit of Duty Drawback for Local Purchase Item used in sale of export.
RAMESH KUMAR VERMA
(Expert)
26 May 2012
The EXIM Policy defines deemed exports as 'those transactions in which the goods supplied do not leave the country'. Hence, the condition for "payment of the goods is made in India" as applicable upto March '99 is no longer applicable. But the goods supplied must have been manufactured in India.
Deemed Exports shall be eligible for the following benefits in respect of manufacture and supply of goods qualifying as Deemed Exports:
a) Special Imp rest Licence/Advance Intermediate License;.
b) Deemed Exports Drawback Scheme i.e, on the Deemed Exports, Drawback at the rate fixed by the Ministry of Finance for the DGFT or his regional Officers pay the goods physically exported.
c) Refund of terminal excise duty ie., Central Excise duty, if paid any, on the goods supplied under Deemed Exports is refunded by the DGFT or his regional Officers
d) ‘Special Import License’ at the rate of 6 per cent of the FOB value (excluding all taxes and levies)
e) If the supplier has made the supplies against Advance Release Order(ARO) or Back to Back Letter of Credit, he shall be entitled for the benefits of Deemed Exports Drawback Scheme, Refund or terminal excise duty and Special Imprest License
f) In respect of supply of capital goods to EPCG license holder, the supplier shall be entitled to the benefits stated above except, however, that the benefit of Special Imprest License or Deemed Export Drawback Scheme shall be available only in case of supplies made to Zero duty EPCG license holder.
for broadly read:
https://www.eximkey.com/contents/showpage1.asp?pageid=5955
https://www.eximkey.com/contents/showpage1.asp?pageid=5734
https://www.eximkey.com/contents/showpage1.asp?pageid=5821
https://www.eximkey.com/contents/showpage1.asp?pageid=5729
Deemed Exports shall be eligible for the following benefits in respect of manufacture and supply of goods qualifying as Deemed Exports:
a) Special Imp rest Licence/Advance Intermediate License;.
b) Deemed Exports Drawback Scheme i.e, on the Deemed Exports, Drawback at the rate fixed by the Ministry of Finance for the DGFT or his regional Officers pay the goods physically exported.
c) Refund of terminal excise duty ie., Central Excise duty, if paid any, on the goods supplied under Deemed Exports is refunded by the DGFT or his regional Officers
d) ‘Special Import License’ at the rate of 6 per cent of the FOB value (excluding all taxes and levies)
e) If the supplier has made the supplies against Advance Release Order(ARO) or Back to Back Letter of Credit, he shall be entitled for the benefits of Deemed Exports Drawback Scheme, Refund or terminal excise duty and Special Imprest License
f) In respect of supply of capital goods to EPCG license holder, the supplier shall be entitled to the benefits stated above except, however, that the benefit of Special Imprest License or Deemed Export Drawback Scheme shall be available only in case of supplies made to Zero duty EPCG license holder.
for broadly read:
https://www.eximkey.com/contents/showpage1.asp?pageid=5955
https://www.eximkey.com/contents/showpage1.asp?pageid=5734
https://www.eximkey.com/contents/showpage1.asp?pageid=5821
https://www.eximkey.com/contents/showpage1.asp?pageid=5729
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