In respect of items covered under the DEPB Scheme, it was observed that the major exporters operating under the DEPB Scheme were mainly from the Engineering sector including the auto and auto component industry, Chemicals, Pharma Sector, Textiles and the marine sector. Since the DEPB Scheme will not continue beyond September 30,2011, it has been decided to provide a smooth transition for these items while incorporating these in the drawback schedule. As a transitory arrangement, these items will suffer a modest reduction in the existing DEPB rates , to the extent of 1% to 3%, which represents the ad-hoc rates of DEPB introduced in 2007.
Further, the appropriate duty drawback rates for the items under DEPB have been recomputed taking into account the prevailing customs duty rates. It has been observed that for most of the items under DEPB, the recomputed rate works out to be far lower than the existing DEPB rates, even after removal of the ad-hoc element, ranging from 1 to 3%. In order to ensure that this transition does not adversely affect exporters who were operating under the DEPB Scheme, the Government has decided that the drawback rate shall be capped at 5.5% for many items. However, there are 340 line items where , even after reduction of the ad-hoc rates (1 to 3%) from the existing DEPB rates, the recomputed rate works out to more than 5.5%. Some of these items are listed below as an illustration:
In such cases, Government has decided to provide the recomputed duty drawback rates. Further, for certain products in the marine products sector, namely frozen and chilled meat products, it has been decided to provide a transitional duty drawback rate , taking into account the large volumes of exports of these products in the DEPB and also considering the fact that a large number of exporters in these sectors are from the Medium and Small Scale Sector.
Presently, the DEPB rates are available for two wheelers, three wheelers, commercial vehicles and tractors. Drawback rates have been provided in the proposed schedule. However, exporters of passenger cars are presently opting for brand rate of duty drawback. Government has received requests from these exporters through SIAM (Society of Indian Automobile Manufacturers)for inclusion under the AIR drawback schedule and the same has been accepted.
Consequently, the drawback schedule will now provide AIR rate of duty drawback for Passenger Car Exporters also. Further, Government has also decided not to impose any value cap on the transport sector. With these measures, it is hoped that the auto sector which are the primary beneficiaries under DEPB would be able to make a smooth transition into the drawback scheme.
In respect of overlapping items, (i.e. items which figure in both the DEPB Schedule as well as the drawback schedule) Government has decided that to the extent possible the drawback rates be aligned so as to provide uniformity to exporters who have been operating under either of these schemes. As a general policy, it has been decided that there will be no value cap for all items, where the duty drawback rate is less than or equal to 3%.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
