Duty Exemption Scheme: Prestige Institute of Management and Research, Indore

PRESTIGE INSTITUTE OF MANAGEMENT AND
RESEARCH, INDORE
EXPORT INCNETIVE AND INSTITUONAL SUPPORT
DUTY EXEMPTION SCHEME
SUBMITTED TO :- SUBMITTED BY :-
Prof. Paridhi Dangi Ravi Jain
Rohit Kasturi
Rohit Maal
Rohit Poptani
Import Facilitation for Exports:
Duty Drawback
Duty Free Replenishment Certificate
Duty Entitlement Pass Boom Scheme
Special Import License
 Green Card
DUTY DRAWBACK
Duty Drawback refers to the refund in respect of Central Excise and
Customs Duty paid in respect to the raw material and other inputs used in
the manufacture of product prior to its export.
Exporters can claim the amount of duty drawback as soon as the
exports of goods take place.
Type of Drawback Rates

All Industry Rate
Brand Rate
Special Brand Rate
Filing Duty Drawback:
The processing of drawback is done by customs
authorities after the EXPORT GENERAL MANIFEST is filed.
Time for Claiming Drawback Claim:

Within 3 months from the date of LET EXPORT
ORDER.
Exporter can seek extension by requesting Assistant Commissioner and
if he is satisfied with the reasons stated he will grant the extension for
MAXIMUM of 3 months.
Duty remission schemes
Duty remission schemes consist of :-

(a) Duty Free Replenishment Certificate (DFRC) and
(b) Duty Entitlement Passbook Scheme (DEPB).
DFRC permits duty free replenishment of inputs used in the export product.
DEPB allows drawback of import charges on inputs used in the export
product
Duty Entitlement Pass Book Scheme ( DEPB ) :-
The objective of the DEPB is to
neutralize the incidence of Customs duty on the import content of the
export product.
Under the DEPB scheme, an exporter may apply for credit or
claim of duty credit as a specified percentage of FOB value of exports,
made in freely convertible currency.
The Credit is granted against such export
products and at such rates as may be specified by the Director General of
Foreign Trade
DEPB
The exporter can use this credit to pay for the import duty on the import of
inputs whether required for the manufacture of the export product or not.
Blue Shipping Bill to get benefit under DEPB scheme.
valid for a period of 12 months from the date of its issuance.
Application should be within 180 days from the date of exports or within
90 days from the date of realization, whichever is later.
DEPB
Freely transferable.
It should be noted that the imports under DFRC should be made from the
same port from where the exports have been made.
The application for grant of DEPB should be submitted to the Regional
concerned Licensing Authority in prescribed format along with the following
documents:
Bank Draft for Payment of Application Fee
Export Promotion Copy of the Shipping Bill(Blue)
Bank Certificate of Export and Realization in prescribed form
Self Attested Copy of the RCMC
Duty Free Replenishment Certificate (DFRC):
DFRC is issued for the import of inputs used in the manufacture of goods
without payment of basic customs duty. However, such inputs shall be
subject to the payment of additional customs duty equal to the excise duty at
the time of import.
DFRC shall be issued on a minimum value addition of 25%
only in respect of products covered under the SION as notified by Directorate
General of Foreign Trade (DGFT)
DFRC
The exporter who wants to avail of this facility should give a declaration in
the Export promotion Copy of Shipping Bill indicating the serial number and
the product group as per the Standard Input Output Norms (SION) at the
time of seeking custom clearance of the export shipment.
Documentation: Submitted to the Regional concerned Licensing Authority
in prescribed format along with the following documents:
Bank Draft for Payment of Application Fee.
Export Promotion Copy of the Shipping Bill.
Bank Certificate of Export and Realization in prescribed Form.
Statement of Export giving separately each shipping number and date, FOB
Value in Indian Rupees as per shipping bill and description of the resultant
product.
DFRC
Filing of the application within a period of 90 days from the date of realization
of export proceeds can be extended to 180 days in case of export shipment sent
under irrevocable Letter of Credit.
The exporter should register the export contract with the port from where the
shipment is to be sent as the DFRC is issued with the single port of registration
i.e. the port form where the export is made.
The validity of DFRC is 18 months.
Freely transferable.
Imports under DFRC should be made from the same port from where the
exports have been made.
The cif shall be arrived at after discounting 25% from the Fob Value calculated
on the basis of BRC.
FOB prices shall be calculated on the basis of the bank realization certificate.
The value of DFRC is determined keeping in view the minimum value
addition of 33%
SPECIAL IMPORT LICENSE
Under this scheme, certain specified categories of exporters

were granted the facility of Special Import License which will
enable them to import items specifically ear marked for import
against this license.
Green Card
Introduced to reduce the transaction costs.

Facility of Green Card:
Automatic issue of Import License.
Automatic customs clearance for exports.
Automatic customs clearance for imports related to exports.
Green Card is valid for 3 years and a

firm/company can obtain up to 5 Green Cards.
Eligibility:
All Status Holders (i.e. Export Houses)

Manufacturer exporter exporting more than 50% of their production subject
to a minimum turnover of Rs. 1 crore in the preceding year.
Service providers rendering services in free foreign exchange for more than
50%of their services turnover subject to a minimum volume of Rs. 35 lakhs in
free foreign exchange in the preceding year.
THANK YOU!!!!!!!!!

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PRESTIGE INSTITUTE OF MANAGEMENT AND

EXPORT INCNETIVE AND INSTITUONAL SUPPORT

DUTY EXEMPTION SCHEME

Type of Drawback Rates

Time for Claiming Drawback Claim:

Duty remission schemes consist of :-

Blue Shipping Bill to get benefit under DEPB scheme.

valid for a period of 12 months from the date of its issuance.

Under this scheme, certain specified categories of exporters

Introduced to reduce the transaction costs.

Green Card is valid for 3 years and a

All Status Holders (i.e. Export Houses)

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