Clarification Relating To DEPB Scheme

GOVT. OF INDIA

OFFICE OF THE COMMISSIONER OF CUSTOMS,

CUSTOM HOUSE, KANDLA

Tele.: 02836-271460, Fax : 271467

Attention of all Importers, Exporters, Custom House Agents and Members of the Trade are invited to Notification No. 96/2004-Cus dated 17.09.2004 issued under DEPB Scheme and Subsequent Notification No.89/2005-Cus dated 04.10.2005 regarding Validity of DEPB License issued for debit of duty.

02. As you may be aware, Notification No. 96/2004-Cus dated 17.09.2004 issued under DEPB Scheme expired on 30.09.2005 and subsequently a new Notification (No. 89/2005-Cus dated 04.10.2005) has been issued to allow imports under DEPB Scheme without payment of customs duty upto 31^st December, 2005. There was, thus, a gap of three days between the expiry of the earlier Notification and issue of the new one. After issue of Notification No. 89/2005-Cus, several references have been received from the trade and industry seeking clarification on certain points. A request has been made that bills of entry filed during the period 01.10.2005 to 03.10.2005 (both days inclusive when Notification No. 96/2004 –Cus. had expired and no other customs Notification for allowing imports under DEPB Scheme was in operation) in respect of goods imported under DEPB Scheme should be extended the benefit of DEPB Scheme by suitably amending Notification No. 89/2005-Cus. A second point raised is whether DEPB benefits can be extended to imported goods against a DEPB Licence in terms of Notification No. 89/2005-Cus. dated 04.10.2005 where the DEPB License contains an endorsement that “this DEPB is issued under Notification No. 96/2004-Cus. dated 17.09.2004”.

03. The DGFT has also raised another point stating that at times the DEPB scrips issued under 45/2002-Cus. (i.e. customs Notification Governing DEPB imports prior to 17.09.2004)are revalidated based on the evidence of delay caused either at the Customs end or at the DGFT end in terms of paragraph 2.13 of the HBP. He has suggested that in such cases the scrips should be honored by the Customs filed formations. Some filed formations have also pointed out that since Notification Nos. 34/97-Cus dated 01.04.1997(the first Customs Notification on DEPB Scheme) and 45/2002-Cus dated 22.04.2002 are open ended, and no expiry date for the Notifications is mentioned, DEPB benefit should be extended to the imported goods if the DEPB scrips are still valid and if the conditions of these Notifications are fulfilled.

04. The issues raised have been examined by the Ministry. Pending further examination of the matter, it is clarified that exports made during 1^st October to 3^rd October, 2005 shall be eligible for the benefit of the DEPB Scheme and that DEPB credit on imports against Bills of Entry filed during this period may be allowed to be utilised on a provisional basis. It is also clarified that DEPB benefits may be extended to imported goods under Notification No. 89/2005-Cus even if the DEPB licence contains an endorsement that it is issued under Notification No. 96/2004-Cus. This would be subject to the condition that the DEPB licence is valid to cover the imported goods and all conditions of Notification 89/2005-Cus are fulfilled. It is further clarified that licences issued under Notification No. 34/97-Cus. and 45/2002-Cus. may also be allowed to be utilised for clearance of goods under DEPB Scheme provided the licences are valid to cover the imported goods and the conditions of Notification Nos.34/97-Cus and 45/2002-Cus are fulfilled.

05. All Trade Associations / Chamber of Commerce / Members of regional Advisory Committees and Custom House Agent’s Association are requested to Publicise the contents of this Public Notice among their members /constituents.

(Authority: - Board’s Letter F.No.605/16/2006-DBK dated 03.02.2006 and D.O. letter No. 608/208/2005-DBK dated 20.12.2005 of Joint Secretary (DBK), New Delhi.)