In cases where the exporter has not applied for DEPB credit in respect of shipping bills where date of order of Let Export is on or after 1st April, 2002, he can apply for the DEPB with new rates notified by Public Notice No.62 dated 17.2.2003. Such applications shall be filed in the appendix 10C alongwith prescribed documents as per procedure given in Handbook (Vol.1)
Pursuant to the above Securities and Exchange Board of India (Delisting of Securities) Guidelines 2003, has been issued (Copy enclosed). These guidelines shall come into effect immediately.
The Policy relating to Duty Entitlement Passbook Scheme (DEPB) Scheme is given in Chapter-4 of the Policy. The duty credit under the scheme shall be calculated by taking into account the deemed import content of the said export product as per SION and the basic custom duty and special additional duty ( SAD) payable on such deemed imports. The value addition achieved by export of such product shall also be taken into account while determining the rate of duty credit under the scheme.
There have been representations from the trade that since the procedure of application and issuance of brand rate letters under Rule 7 involves one to two months, they remain out of funds and face financial difficulties.
The trade has however been representing that on occasions it becomes difficult to resolve the composite article into its constituent components and the only alternative is to break the article. This results in wastage of the products and also the exporters are asked to go for laboratory testing to ascertain the composition of individual materials.
It is also clarified here that as regards such manufacturer- exporters and supporting manufacturers who are registered with Central Excise, the fact of non-availment of Cenvat facility can be confirmed from ARE-I which these exporters shall be furnishing. Therefore, in case of registered manufacturer-exporters and merchant exporters with registered supporting manufacturers the earlier practice of acceptance of ARE-I shall continue.
