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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2011 Can anybody explain how the advance authorisation scheme & depb scheme works with example.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

02 August 2011 You have to understand what is DEPB DUTY ENTITLEMENT PASSBOOK . Govt. allows the exporters to import goods and services against the exports made by them without payment of duty and the same is called DEPB which can be sold in the market if they are unable to utilise it. This is an income to the exporters.

Advance / Advance Intermediate Authorisation
An Advance Authorisation / Advance Intermediate Authorisation is issued to allow duty free import of inputs, which are physically incorporated in the export product. In addition, fuel, oil, energy, catalysts etc. which are consumed in the course of their use to obtain the export product, may also be allowed under the scheme.

Advance Authorisation can be issued for:-

Physical Exports;
Intermediate Supplies;
Deemed Exports;

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.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2011 Dear Expert,

Can you please clarify how to use advance authorisation / depb for tyre export. We are the manufacturer and we will be doing the export. So incase we import material, what benefits do we derive under either of the schemes.Also need to know the duty structure for import.

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