Clarifications Relating to DEPB Scheme – Reg. - Customs - 176/2005

OFFICE OF THE COMMISSIONER OF CUSTOMS C.R. BUILDING : QUEENS ROAD POST BOX NO 5400, BANGALORE-1 PUBLIC NOTICE NO. 176/2005 Dated. 30-12-2005 Sub: Clarifications Relating to DEPB Scheme Reg. 1. Attention of the Importers, Exporters Customs House Agents and Trade Associations is invited to the notification No. 96/2004 Cus dated 17.09.2004 as amended issued under DEPB Scheme. The said notification expired on 30.09.2005 and subsequently a new notification (No.89/2005-Cus dated 4.10.2005) was issued to allow imports under DEPB Scheme without payment of customs duty upto 31st December,2005. There was, thus a gap of three days between the expiry of the earlier notification and issue of the new one. After issue of notification no. 89/2005 Cus,-dated 4.10.2005,several references were received from the trade and industry seeking clarification on certain points. A request has been made that bills of entry filed during the period 01.10.2005 to 3.10.2005 (both days inclusive), when notification no. 96/2004 Cus- dated 17.9.2004 had expired and no other customs notification for allowing imports under DEPB scheme was in operation in respect of goods imported under DEPB Scheme, should be extended the benefit of DEPB Scheme by suitably amending notification no. 89/2005-Cus-dated 4.10.2005 A second point raised is whether DEPB benefits can be extended to imported goods against a DEPB licence in terms of notification No. 89/2005-Cus dated 4.10.2005 where the DEPB Licence contains an endorsement that this DEPB is issued under notification no. 96/2004 Cus. Dated 17.09.2004 . 2. The DGFT has also raised another point stating that at times the DEPB scrips issued under. 45/2002-Cus dated (i.e. customs notification governing DEI'B imports prior to 17.9.2004) are revalidated based on the evidence of delay caused either at the Customs end or at the DGFT end in terms of paragraph 2.13 of the HBP). He has suggested that in such cases, the scrips should be honoured by the Customs field formations. Some field formations have also pointed out that since notification Nos. 34/97-Cus dated 1.4.97 (the first customs notification on DEPB Scheme) and 45/2002-Cus dated 22.4.2002 are open-ended, and no expiry date for the notifications is mentioned, DEP'B benefit should be extended to the imported goods if the DEPB scrips are still valid and if the conditions of these notifications are fulfilled. 3. The issues raised have been examined by the Ministry. Pending further examination of the mater, it is clarified that exports made during 1st October to 3rd October, 2005 shall be eligible for the benefit of the DEPB Scheme and that DEPB credit on imports against Bills of Entry filed during this period shall be allowed to be utilised on a provisional basis. It is also clarified that DEPB benefit shall be extended to imported goods under Notification No. 89/2005- Cus-dated 4.10.2005 even if the DEPB license contains an endorsement that the same is issued under notification no. 96/2004 Cus dated 17.9.2004 This would be subject to the condition that the DEPB licence is valid to cover the imported goods and all conditions of notification No. 89/2005 Cus dated 4.10.2005 are fulfilled. It is further clarified that licences issued under Notification No. 34/97 Cus dated 1.4.1997 and 45/2002 Cus dated 22.4.2002 may also be allowed to be utilised for clearance of goods under DEPB Scheme provided the licences are valid to cover the imported goods and the conditions of notification Nos. 34/97-Cus dated 7.4.1997 and 45/2002-Cus dated 22.4.2002 are fulfilled. 4. The Trade and Industry Associations are requested to give wide publicity to the contents of this Public Notice. Sd/- (M. VINODKUMAR)