Export Benefit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2011 A company wants to export tyres to bangladesh. Which is the better option- advance authorisation scheme or the depb scheme.Can some body please clarify.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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21 July 2011 DEAR SIR,

An advance licence is granted for the import of inputs without payment of basic customs duty. Such licences shall be issued in accordance with the policy and procedure in force on the date of issue of the licence and shall be subject to the fulfillment of a time-bound export obligation, and value addition as maybe specified. Advance licences maybe either value based or quantity based.

Those who don't want to take the route of Advance License have option of Duty Entitlement Passbook Scheme. Customs duty paid on imported inputs are granted duty credit against exports. It is granted as percentage of FOB value. The Director General of Foreign Trade notifies the rates.
DEPB is issued only for exports made in freely convertible currency.
DEPB holder can import raw materials, component, parts, packaging material etc. It is valid for 24 months from date of issue. DEPB or goods imported against it are freely transferable.
The port from where goods are to be imported shall be stated on DEPB. Additional customs duty adjusted from DEPB shall not eligible for CENVAT/drawback. Exports made under DEPB are not entitled for drawback, but additional customs duty paid in cash on inputs under DEPB is eligible for CENVAT/drawback as per rules of department of revenue.

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2011 dear expert.
as per the recent policy depb scheme has been discontinued from 30 th june2011 but later extended for 3month. So can the company apply now for depb scheme- it was not exporting earlier.

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