Export of Excisable Goods under Duty Drawback (DBK) or DEPB - Central Excise Practice Manual (OLD) - Central Excise

EXPORT OF EXCISABLE GOODS - UNDER DUTY DRAWBACK (DBK) OR DEPB Drawback of excise duty In relation to excise, duty drawback means the rebate of duty paid on any excisable materials on which any operation is carried in India and exported thereof. · Duty drawback is applicable only on production inputs i.e. refund of duty of excise paid on production units (components, raw-materials, parts, packing materials etc.) used in export products and not refund of duty paid on finished (export) products. · The amount or rate of drawback is specified under rule 3 or revised under rule 4 of drawback rules, as the case may be. · Drawback rate applicable when Cenvat credit has not been availed on inputs and input services, but it does not restrict taking of Cenvat credit on capital goods. · DTA exporters are also eligible for grant of drawback at brand rate in respect of duties suffered on their inputs which are processed by EOU/ EPZ units. · Green coloured shipping bill be treated as an application for claim for rebate of drawback which will automatically credit the exporter's account immediately after 'Let Export' order and filing of manifest by the carrier, no separte application for claim for rebate required. However any supplementary drawback claim should be filed within 3 months of the date of exports. · Drawback is payable within 1 month of export or else the custom should pay interest for the period of delay. · If the sale proceeds are not realised within the time period permitted by RBI, the drawback paid to the exporter is recoverable. It can be repaid to the exporter if sale proceeds are realised after recovery. Duty Entitlement Pass Book Scheme (DEPB scheme) Under this scheme the exporter gets credit when he exports the goods on the basis of rates prescribed. When the assessee imports any goods, the credit taken earlier on export goods can be utilized for payment of custom duty payable on goods imported [Notification No. 45/2002 - Cus]. · Supplies from DTA to SEZ are also entitled for DEPB benefits. · Credit will be granted on the basis of entitlement rates notified by DGFT. This entitlement rates will be a % of FOB fixed on the basis of Standard Input Output Norms (SION). · The credit of duty in pass book will entitle the exporter to import raw materials, components, packaging materials etc. duty free. Goods which are otherwise eligible for imports can be imported under the credit. However, capital goods cannot be imported under DEPB. · DEPB scrips are transferable and can be transferred without waiting for realization of export proceeds in respect of shipments against irrevocable letter of credit. · The scheme is available to both manufacturer exporters as well as merchant exporters. DEPB has to be registered with customs house. · If DEPB credit is insufficient, excess amount of duty can be paid in cash. Two separate entries in Bill of Entry should be made. · Export under this scheme will be under a blue coloured shipping bill so that customs authorities can maintain separate record. Exports under the scheme can be made from specified CFS (Container Freight Station) also. · If export proceeds are not realised within 6 months or such extended period as may be allowed by RBI or short realised, the Pass Book Holder shall pay in cash an amount equivalent to the amount of credit taken on exports and not realised.