Duty Exemption / Remission Schemes of Exim Policy 2004-2009
The Duty Exemption Scheme enables import of inputs required for export production. It includes the following exemptions-
- The Duty Drawback Scheme is administered by the Directorate of Drawback, Ministry of Finance. Under Duty Drawback scheme, an exporter is entitled to claim
Indian Customs Duty paid on the imported goods and Central Excise Duty paid on indigenous raw materials or components.
Excise Duty Refund:
- Excise Duty is a tax imposed by the Central Government on goods manufactured in India. Excise duty is collected at source, i.e., before removal of goods from the factory premises. Export goods are totally exempted from central excise duty.
- Octroi is a duty paid on manufactured goods, when they enter the municipal limits of a city or a town. However, export goods are exempted from Octroi.
The Duty Remission Scheme enables post export replenishment/ remission of duty on inputs used in the export product.
DEPB: Duty Entitlement Pass Book in short DEPB
Rate is basically an export incentive scheme. The objective of DEPB Scheme is to neutralize the incidence of basic custom duty on the import content of the exported products.
Under the Duty Free Replenishment Certificate (DFRC) schemes, import incentives are given to the exporter for the import of inputs used in the manufacture of goods without payment of basic customs duty. Duty Free Replenishment Certificate (DFRC) shall be available for exports only up to 30.04.2006 and from 01.05.2006 this scheme is being replaced by the
Duty Free Import Authorisation (DFIA).
Effective from 1st May, 2006, Duty Free Import Authorisation or DFIA in short is issued to allow duty free import of inputs which are used in the manufacture of the export product (making normal allowance for wastage), and fuel, energy, catalyst etc. which are consumed or utilised in the course of their use to obtain the export product. Duty Free Import Authorisation is issued on the basis of inputs and export items given under Standard Input and Output Norms(SION).
Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks(STPs) And Bio-Technology Parks (BTPs) of Exim Policy 2004-2009
The Export Import Policies relating to Export Oriented Units (EOUs) Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-technology parks (BTPs) Scheme is given in Chapter 6 of the Foreign Trade Policy. Software Technology Park(STP)/Electronics Hardware Technology Park (EHTP) complexes can be set up by the Central Government, State Government, Public or Private Sector Undertakings.
Export Promotion Capital Goods Scheme (EPCG) of Exim Policy 2004-2009
Introduced in the EXIM policy of 1992-97,
Export Promotion Capital Goods Scheme (EPCG) enable exporters to import machinery and other capital goods for export production at concessional or no customs duties at all. This facility is subject to export obligation, i.e., the exporter is required to guarantee exports of certain minimum value, which is in multiple of total value of capital goods imported.
Capital goods imported under EPCG Scheme are subject to actual user condition and the same cannot be transferred /sold till the fulfillment of export obligation specified in the licence. In order to ensure that the capital goods imported under EPCG Scheme, the licence holder is required to produce certificate from the jurisdictional
Central Excise Authority (CEA) or Chartered Engineer (CE) confirming installation of such capital goods in the declared premises.
Special Economic Zone (SEZ)
under the Exim Policy 2004-2009
A Special Economic Zone in short SEZ is a geographically distributed area or zones where the economic laws are more liberal as compared to other parts of the country. SEZs are proposed to be specially delineated duty free enclaves for the purpose of trade, operations, duty and tariffs. SEZs are self-contained and integrated having their own infrastructure and support services.
The area under 'SEZ' covers a broad range of zone types, including Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Trade Zones (FTZ), Free Ports, Urban Enterprise Zones and others.
In Indian, at present there are eight functional Special Economic Zones located at Santa Cruz (Maharashtra), Cochin (Kerala), Kandla and Surat (Gujarat), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Falta (West Bengal) and Noida (Uttar Pradesh) in India. Further a Special Economic Zone at Indore ( Madhya Pradesh ) is also ready for operation.
Free Trade & Warehousing Zones of Exim Policy 2004-2009
Free Trade & Warehousing Zones (FTWZ) shall be a special category of Special Economic Zones with a focus on trading and warehousing. The concept of FTWZ is new and has been recently introduced in the five-year foreign trade policy 2004-09. Its main objective is to provide infrastructure for growth of the economy and foreign trade. Free Trade & Warehousing Zones (FTWZ) plays an important role in achieving global standard warehousing facilities as free trade zones. Free Trade & Warehousing Zones is a widely accepted model with a history of providing Substantial encouragement to foreign trade and warehousing activity.
Deemed Exports under the Exim Policy 2004-2009
Deemed Export is a special type of transaction in the Indian Exim policy in which the payment is received before the goods are delivered. The payment can be done in Indian Rupees or in Foreign Exchange. As the deemed export is also a source of foreign exchange, so the Government of India has given the benefit duty free import of inputs.
|00||Free shipping Bills involving remittance of foreign exchange|
|01||Advance Licence with actual user condition.|
|02||Advance Licence with intermediate Suppliers|
|04||Advance Release Order |
|05||Advance Licence for Deemed Exports|
|09||Diamond Imprest Licence|
|11||Confessional duty EPCG Scheme|
|12||Zero Duty EPCG Scheme|
|14||Import Licence for restricted items of Imports|
|15||Special Import Licence (SIL)|
|17||Advance Licence for annual requirement|
|18||Duty Free Replenishment Certificate (DFRC)|
|20 ||Jobbing (JBG)|
|22||Duty free credit Certificate|
|41||Drawback and Advance Licence|
|42||Drawback and DFRC|
|43||Drawback and Zero Duty EPCG|
|44||Drawback and Concessional Duty EPCG|
|45||Drawback and Pre -Export DEPB|
|46||Drawback and Post Export DEPB|
|47||Drawback and JBG|
|48||Drawback and Diamond Imprest Licence|
|49||Drawback and EOU/EPZ/SEZ|
|50||EPCG and Advance Licence|
|51||EPCG and DFRC|
|52||EPCG and JBG|
|53||EPCG and Diamond Imprest Licence|
|54||EPCG and Replenishment Licence|
|55||EPCG and DEPB (Post Exports)|
|56||EPCG and DEPB (Pre-Exports)|
|59||EPCG and DFIA|
|71||EPCG, Drawback and DEEC|
|72||EPCG, Drawback and DFRC|
|73||EPCG, Drawback and Jobbing|
|74||EPCG, Drawback and Diamond Imprest Licence|
|75||EPCG, Drawback and DEPB Post Export|
|76||EPCG, Drawback and DEPB (Pre-Exports)|
|79||EPCG, Drawback and DFIA|