duty entitlement pass book scheme

8/3/2019 Duty Entitlement Pass Book Scheme

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Duty entitlement Pass book scheme( DEPB): Under the DEPB scheme, an exporter

may apply for credit as a specified percentage of FOB value of exports, made in freely

convertible currency. The credit shall be available against such products and at such ratesas may be specified by DGFT by way of public notice issued in this behalf for import of

raw material , intermediates, components, parts packaging materials.

Export Promotion of capital goods Scheme (EPCG):EPCG scheme was

introduced in order to enable manufacturer exporter to import machinery and

other capital goods for export production at concessional or no custom duties atall. Facility is subject to export obligation i.e. the exporter is required to

guarantees exports of certain minimum value.

The scheme covers the following :

EPCG allows of capital goods for production at 5 % custom duty subject to an

export obligation equivalent t o 8 times of duty saved on capital goods imported

under EPCG scheme to be fulfilled over a period of 8 years reckoned from date ofissue of licence.

Marketing Access Initiative : MAI is intended to provided financial assistance

for medium term export promotion efforts with a sharp focus on country andproduct. Export promotion councils, industry and trade associations, agencies of

state government, Indian mission abroad are eligible for assitance under the

scheme.

Export promotion Councils : Export promotion council are non-profit organization

registered under the companies Act or societies registration Act as case may be.They are supported by financial assistance from the central government.

The main role of the EPCs is to project India image abroad as reliable supplier of

high quality goods and services. In particular EPC encourage and monitor theobservance of international standards and specification by exporters. EPC keepabreast of trends and opportunities in international market for goods and services

and assist their members in taking advantage of such International markets for

goods and services and assist their members in taking advantage of suchopportunities in order expand and diversify.

Functions:

Registration of exporters and registration-cum-Membership certificate (RCMC)under EXIM policy.

Providing a forum and link between govt and their members for consideration and

implementation of scheme for export production and marketing.

Collection and dissemination of information primarily on export opportunities

through various media, including news papers, bulletins, letters, fax.

Sponsoring and inviting business delegations, sales team, study teams, for

exploring markets for developing export.

Fixation of floor price or minimum export price or recommendation thereof to the

government.


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Arranging or participating in buyers and sellers meet , export of trade fairs and

exhibition in India and abroad, publicity of goods in foreign market.

Recommendation in formulation and implementation of export assistanceschemes such fixation of duty drawback.

Issue pertaining to production and marketing of products. Fixation of export quota.

At present there are 21 EPC dealing with various commodities, such as basic

chemicals , and allied products, cotton textiles, handlooms, apparels, cashew, gem

and jewellery, silk, marine product, carpets, leather manufactures, gems and

jewellery, plastic, spices, sport goods, eng goods, tobacco, wool, handicraft,electronics and computer software.

Commodity Boards are boards, which have been specially established by the

Government of India for the promotion of some of the traditional commodities of exports

having high export potentials. These boards are supplementary to the Export PromotionCouncils (EPCs).

The functions of Commodity Boards are similar to that of EPCs.

Difference Between EPCs and CBs

Commodity Boards look after the export promotion of primary and traditional

items of exports while Export Promotion Councils look after the export promotion

of non-traditional items like engineering goods, computers, chemicals, etc. with

promising export potential.

EPCs are concerned only with the promotion of exports of their respectiveproducts; the scope of Commodity Boards is much broader. The functions of

Commodity Boards also encompass the development and production of therespective commodity and domestic marketing.

Operating Commodity Boards

At present, there are seven Commodity Boards in India.

Coffee Board.

Rubber Board.

Tobacco Board.

Spice Board.

Central Silk Board. Tea Board.

Coir Board.

Functions of Commodity Boards

Commodity Boards are statutory in character and operate under the administrativecontrol of the "Ministry of Commerce".

The major functions of the Commodity Boards are:


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To takes active interest in production, development and exports of respective

commodities.

To introduce new methods of cultivation of commodities.

To offer advice to the government on export matters such as fixing quota for

exports and significant trade agreements.

To provide trade information, guidance and various other services to theirmembers and help them in their export promotion efforts.

To participate in trade fairs and exhibitions abroad.

To sponsor trade delegations and conduct market surveys for the benefit of theirmembers.

To arrange pre-shipment inspection for export items.

Agri-Export Zones

With a view to promoting agricultural exports from the country and remunerative returns to the farmingcommunity in a sustained manner, the concept of the agri export zones (AEZ) was floated. These zoneshave been set up for end to end development for export of specific products from a geographically

contiguous area.

Deemed Exports as defined in the Export and Import Polilcy, 1997-2002

means those transactions in which the goods supplied do not leave the country

and the supplier in India receives the payment for the goods. It means the

goods supplied need not go out of India to treat them as Deemed Export.When the goods do not physically cross the border of the exporting country, neverthless thegovernment considers this as export for some perks or other benefits, it is called deemed export.Meaning not export practically but considered as one.

For Example any supply to a factory in SEZ is deemed Import. Any sale from SEZ is Deemed

Export

The following categories of supply of goods manufactured in India shall be regarded as

deemed Exports under the Export and Import Policy 1997- 2002.

a). Supply of goods against licenses issued under the Duty exemption Scheme:

b) Supply of goods to Units located in Export Processing Zones (EPZs) or

Software Technology Parks (STPs) or Electronic Hardware Technology Parks

(EHTPs) or

Export Oriented Units (EOUs)


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c) Supply of Capital goods to holders of licenses issued under the Export

Promotion Capital Goods (EPCG) Scheme;

d) Supply of goods to Projects financed by Multilateral or Bilateralagencies/funds as notified by the Department of Economic Affairs, Ministry of

Finance under international competitive bidding or under limited tender system in

accordance with the procedure of those agencies/funds, where the legalagreements provide for tender evaluation without including the Customs duty

e) Supply of capital goods and spares to fertilizer plants if the supply is madeunder the procedure of international competitive bidding.

f) Supply of goods to any Project or purpose in respect of which the Ministry ofFinance, by; a notification permits the import of such goods at zero customs duty

coupled with the extension of benefits to domestic supplies;

g) Supply of goods to such projects in the Power, Oil and Gas sectors in respect ofwhich the Ministry of Finance, by Notification, extends the benefits to domestic

supplies.

h) Supply of Marine Freight Containers by 100% EOU (Domestic freight

containers-manufacturers) to shipping companies including Shipping Corporationof India provided the said containers are exported out of India within 6 months or

such further period as permitted by customs.

Deemed Exports shall be eligible for the following benefits in respect of manufacture

and supply of goods qualifying as Deemed Exports:

a) Special Imp rest Licence/Advance Intermediate License;.


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b) Deemed Exports Drawback Scheme i.e, on the Deemed Exports, Drawback at

the rate fixed by the Ministry of Finance for the DGFT or his regional Officers

pay the goods physically exported.

c) Refund of terminal excise duty ie., Central Excise duty, if paid any, on the

goods supplied under Deemed Exports is refunded by the DGFT or his regional

Officers

d) Special Import License at the rate of 6 per cent of the FOB value (excluding

all taxes and levies)

e) If the supplier has made the supplies against Advance Release Order(ARO) or

Back to Back Letter of Credit, he shall be entitled for the benefits of Deemed

Exports Drawback Scheme, Refund or terminal excise duty and Special Imprest

License

f) In respect of supply of capital goods to EPCG license holder, the supplier shall

be entitled to the benefits stated above except, however, that the benefit of Special

Imprest License or Deemed Export Drawback Scheme shall be available only in

case of supplies made to Zero duty EPCG license holder.

Software Technology Parks of India (STPI) is a government agency inIndia, established in

1991 under the Ministry of Communications and Information Technology, that manages

the Software Technology Park scheme. It is an export oriented scheme for the development

and export ofcomputer software, including export of professional services. It provides physical
http://en.wikipedia.org/wiki/Government_agencyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Ministry_of_Communications_and_Information_Technology_(India)http://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Computer_softwarehttp://en.wikipedia.org/wiki/Computer_softwarehttp://en.wikipedia.org/wiki/Government_agencyhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Ministry_of_Communications_and_Information_Technology_(India)http://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Computer_software


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infrastructure, including dedicated high speed connectivity to technology parks, freedom for 100%

foreignequityinvestment and tax incentives. STPI provides physical hosting for theNational

Internet Exchange of India.

STPI claims to have played a seminal role in India having earned a reputation as an information

technologysuperpower. More than 6,000 businesses are registered under the STPI umbrella,

with 36% growth by value in 2005-06 exports over the previous year. The state with the largest

export contribution wasKarnataka (see Bangalore). STPI has a presence in many of the major

cities of India including the cities

ofBangalore,Bhubaneswar,Chennai,Hyderabad,Gurgaon,Pune,Guwahati,Noida, Mumbai,Ko

chi,Kolkata,Kanpur, Lucknow, Dehradun,Patna,Ranchi, Gandhinagar,Imphal,Shillong,Nashik

etc.

STP schemes provide facilities for the IT industry, helping them undertake software development

and IT enabled services for 100% exports that include professional services. For that, data

communication links have been established, providing high speed connectivity.
http://en.wikipedia.org/wiki/Technology_parkhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Tax_incentivehttp://en.wikipedia.org/wiki/Tax_incentivehttp://en.wikipedia.org/wiki/National_Internet_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Internet_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Internet_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Superpowerhttp://en.wikipedia.org/wiki/Superpowerhttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bhubaneswarhttp://en.wikipedia.org/wiki/Bhubaneswarhttp://en.wikipedia.org/wiki/Bhubaneswarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Hyderabad,_Andhra_Pradeshhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Guwahatihttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Dehradunhttp://en.wikipedia.org/wiki/Dehradunhttp://en.wikipedia.org/wiki/Patnahttp://en.wikipedia.org/wiki/Ranchihttp://en.wikipedia.org/wiki/Ranchihttp://en.wikipedia.org/wiki/Gandhinagarhttp://en.wikipedia.org/wiki/Imphalhttp://en.wikipedia.org/wiki/Imphalhttp://en.wikipedia.org/wiki/Shillonghttp://en.wikipedia.org/wiki/Shillonghttp://en.wikipedia.org/wiki/Nashikhttp://en.wikipedia.org/wiki/Nashikhttp://en.wikipedia.org/wiki/Technology_parkhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Tax_incentivehttp://en.wikipedia.org/wiki/National_Internet_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Internet_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Superpowerhttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bhubaneswarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Hyderabad,_Andhra_Pradeshhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Guwahatihttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Dehradunhttp://en.wikipedia.org/wiki/Patnahttp://en.wikipedia.org/wiki/Ranchihttp://en.wikipedia.org/wiki/Gandhinagarhttp://en.wikipedia.org/wiki/Imphalhttp://en.wikipedia.org/wiki/Shillonghttp://en.wikipedia.org/wiki/Nashik

duty entitlement pass book scheme

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