DEPB Scheme - Customs - 076/98

Circular No. 76/98- Customs dated 12/10/1998 F.No. 605/66/98- DBK Government of India Ministry of Finance Department of Revenue, New Delhi Reference from the field formations have been received in the Board, seeking clarification whether DEPB scrips can be used to clear goods Imported under various other schemes like EPCG Scheme or Project Imports whether SAD will be exempted on such exports; and whether duty leviable at tariff rate on at concessional rate will be debited in a DEPB scrip in case the goods are eligible for a partial exemption, (other than the exemption under Notification No. 34/97-Cus. dated 7.4.97 under which DEPB Scheme is operated). 2. These issues have been considered in the Board, and the decision on each issue is given below. 3. Since there is no restriction on the nature of goods to be imported under DEPB Scheme, goods which are being imported under other Schemes like EPCG Schemes and Project Import can also be cleared against DEPB Scrips. In such cases, the exemption from Special Additional Duty of Customs of 4% vide Notification No. 48/ 98- Cus. dated 17.7.98 will also be admissible to goods imported against DEPB Scrips. 4. It may be recalled here that Notification No. 34/97 dated 7.4.97 is an exemption notification which fully exempts goods imported against a DEPB scrip from the whole of basic customs duty and / or additional customs duty. This exemption is operated by making a debit of duty leviable in the DEPB scrip. In case the import goods are eligible for another partial exemption from payment of duty, such exemption would also be applicable to goods imported against a DEPB scrip, provided the import goods meet the conditions, if any, laid down in the partial exemption exemption notification. In other words, the duty debitable in the DEPB scrip, in such a case would take into account the concessional rate of duty permitted under the partial exemption notification, and not tariff rate of duty. Sd/- (Sandeep Ahuja) Under Secretary (BDK)