» Duty Drawback
The duty drawback refers to the refund in respect of central Excise & Custom duties paid by manufacturer and/or exporter in relation to the inputs used for manufacturing of the products. Duty drawback is not applicable in the respect of a product if
(a)- No excise/custom duties were paid for its manufacturer and/or exporter.
(b)- Amount of the drawback is less then 1 % of FOB value.(except where the amount of drawback is more than Rs 500 per shipment)
(c) - manufacturer and/or exporter is by 100% EOU/EPZ/SEZ Units.
(d)- If manufacturer and/or exporter apply for duty entitlement pass book scheme.
Duty Drawback Rates
The government of India announces every year on 31 may, the rates of Duty drawback in respect of scheduled items. All such rates are called all industry rates. The rates indicated custom & excise duty allocation. These rates are generally made effective for one year from 1 June. In case duty drawback rates are not announced for a product, then you can submit an application in the prescribed form for determination of specific rate of duty drawback for the particles product. Such a rate is known as Brand rate. If the rate of duty drawback is less then 80 % of the duties paid then the exporter can apply for its upwards revision in prescribes form.
Duty Drawback Under EDI System
In all custom station where EDI system has been introduced for processing of shipping documents, the exporter are not required to file duty drawback claims, such claims are processed simultaneously with shipping documents. For receiving this amount you have to be maintain a bank account with a bank, which is link with customhouse.
» Duty Entitlement Pass Book (DEPB)
Under the Duty Entitlement Pass Book (DEPB) scheme, exporter is eligible to claim credit as specified percentage of FOB value if exports made in freely convertible currency. The rate of Duty Entitlement Pass Book (DEPB) is announced by DGFT. The rates of Duty Entitlement Pass Book (DEPB) are decided by DGFT after every 5 years but they have right to change the rates at nay time.
How to Apply
You can apply for this only when you received the payment. Application for the grant of credit under Duty Entitlement Pass Book (DEPB) on post export basis may be made to the licensing authority concerned in ANF-4G along with the documents. The application for obtaining credit should be field within a period of 6 months from the date of realization of export proceeds. You can file one or more application subject to the condition that each application shall contain not more than 10 shipping bills. All the shipping bills in any of the application must related to export made from same port (custom house) only. The Duty Entitlement Pass Book (DEPB) shall be issued with single port of registration, which will be port from where the exports have been affected.
You have to pay the fee of Duty Entitlement Pass Book (DEPB) at the rate of Rs 5/- per thousand subject to minimum of Rs 200/-, in cash or by demand draft drawn in favor of regional licensing authority/DGFT as applicable.
» Vishesh krishi And Gram Udyog Yojna
The objective of this scheme is to prompt the export of fruits, vegetables, flower, minor forest product and their value added product. Export of agricultural product shall be entitled for duty credit scrip equivalent to 5 % of FOB value of exports for each licensing year.
» Focus Market Scheme
Government of India gives the duty credit scrip equivalent to 2.5 % of FOB value of exports to some countries to increase the export in these countries.
» Focus Product Scheme
Government of India gives the duty credit scrip equivalent to 1.25 % of FOB value of exports to some products to increase the export of these products.
» Export Promotion Capital Goods Scheme (EPCG)
According to this scheme, a domestic manufacturer can import machinery and plant without paying customs duty or settling at a concessional rate of customs duty. But his undertakings should be as mentioned below: