Circular No. 75/2000-Cus.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject : DEPB – re-export of goods unfit for consumption
Certain export promotion councils and individual exporters have brought to the notice of the Board that in certain situations the goods imported under DEPB Scheme are found unfit for consumption either because they do not meet the required quality specifications or that the goods cannot perform the function for which they were imported. In such cases, the goods necessarily have to be re-exported and the ground for re-export is well beyond the importer”s control.
2. The issue was also brought to the notice of DGFT who have now issued their Public Notice No. 16(RE-00)/1997-2002 dated 30.6.2000 in this regard.
3. The issue was examined in the Board in consultation with DGFT and it has been decided that in those cases where goods imported under DEPB Scheme have to be re-exported because the imported goods are found defective or unfit for use, Commissioner of Customs may permit re-export and grant a DEPB Credit Entitlement Certificate to the exporter. This Certificate shall be for DEPB credit equal to 98% of the DEPB credit which was debited at the time of import of goods into India, provided that:
i) re-export shall take place from the same port as the port of import;
ii) the goods are re-exported within 6 months from the date of import;
iii) the Asstt. Commissioner/Dy. Commissioner of Customs is satisfied as regards the identity of the goods.
iv) The goods have not been used after import. However, where it is possible to segregate the used goods from the goods which have not been used, re-export of unused goods may be permitted and a certificate for proportionate DEPB benefit issued to the exporter.
4. However, in case the goods had been imported for trading purpose under the DEPB Scheme, their re-export shall be allowed as per this Circular only if the said goods are found to be unfit for use because of manufacturing defects.
5. The fresh DEPB scrip issued by the Regional Licensing Authority on the basis of the said DEPB Credit Entitlement Certificate shall have the same port of registration as the original DEPB scrip which was utilised at the time of clearance of imports. However; it can be used at the same port or at any other port through TRA facility in accordance with Board”s instructions regarding issue of TRA amongst various ports under DEPB Scheme.