EXPORT OF GOODS UNDER DEPB

While filing information as per the format, exporters are required to ensure that correct Group Code No. of the goods being exported and the item No. of relevant Group is clearly mentioned (item-wise details). The exporters/CHAs are advised to fill Item No, in the same manner as given in the Public Notices issued by DGFT.

DEPB Credit in respect of items like formulations, injections etc. of group code No.62 (Chemicals) are at a specific percentage of credit rate for the relevant bulk drug. For proper calculations of DEPB rate, exporters/CHAs are advised to claim export under the specific Sl.No. if they are exporting injections and thereafter mention Sl.No. of Group Code 62 of the bulk drug of which such injections have been made. The system will calculate the said specific percentage of the DEPB rate of such bulk drugs, formulations of which are being exported.

All the DEPB S/Bills having FOB value less than Rs.5 lakhs and/or DEPB rates less than 20% will be assessed by Appraiser/Supdt. (DEPB Cell) However, the S/Bill having FOB value more than Rs.5 lakhs and/or credit rate 20% or more will be assessed by AC/DC (Export) . Any query at the time assessing by Appraiser (DEPB cell) or AC/DC (Export) may be obtained from the service centre and reply to the query has to be furnished through service centre.

If the group code No., Item No. and FOB value declared is accepted by the Appraiser/Supdt (DEPB Cell) or Asstt./Dy. Commissioner(Export), goods may be brought and entered in the system. The examining officer will feed the examination report and “Let Export” order will be given by Appraiser/Supdt. in the EDI system.

Seven copies of S/Bill will be printed for the purposes mentioned against each as under :

Customs Copy For record of Customs

Exporter’s copy For record of Exporters

E.P.Copy For office of DGFT

DPB copy For use in the import cell of ICD Bangalore for registration of licence.

Exchange Control Copy For negotiating the export documents in bank TR-1TR-2 copies

There is a provision for changing the Group Code No./Item No./Value for DEPB credit purposes and such changes will be reflected in the print out of the S/Bill. Such charges may be done by Appraiser/Supdt. (DEPB Cell) AC/DC(Export) as well as by Appraiser/Supdt.(Exam.) The credit will be allowed by the DGFT at the rate/value (for credit purposes only) as approved by Customs. The EP copy of the shipping bill shall be used by the Exporters to obtain DEPB licence from DGFT.

In case, for credit purposes, the exporter accepts the lower value as determined by customs, such lower value will be entered by Appraiser (DEPB Cell) AC/DC (Export) or by Appraiser (Exam) for each item(s) Printout of S/Bill at item level will indicate for FOB value as well value for DEPB credit purposes. Exporters are required to apply for the DEPB Licence at the B value accepted by Customs and not the value declared by them. However, as DEPB is issued on the basis of exchange rate applicable on the date of Let Export, exporters are advised to apply for DEPB Licence at the value accepted by Customs at the time of export multiplied by exchange rate on the date of Let Export(LEO) (As per para 4.43 of EXIM Policy 2003 edition)

In case the exporter does not accept the value determined by the customs, the exports will be allowed provisionally after taking samples ‘for market enquiry. The words “NOT VALID FOR DEPB” will be printed on all the copies of S/Bill and the exporters will be not be eligible for DEPB licence against provisionally assessed S/Bills. In such cases, EP copy of S/Bill will not be printed and only 6 copies will be printed. However, market enquiries about value will be conducted in such cases and either after issue of the Show Cause Notice the market value will be determined or may be accepted by the Exporters on his own. In such cases where samples are drawn subject to market enquiry the copy of the S/Bill for claiming DEPB will be generated after determination of value on the basis of market enquiry and handed over to the exporters duly signed by Appraiser/Supdt. of Customs. In such cases wherever market value has been found to be less than twice the credit claimed, the market value will be mentioned in the EP copy of S/Bill as under :

“Market value of the goods is Rs………..and credit not to exceed 50% of the market value”

Sample may also be drawn for the other purposes such as Chemical test,.

DEPB entitlement etc. The procedure of Provisional Assessment shall be applicable mutates mutandis to above cases as well and the cases will be finalized after necessary reports etc. arte received and unprinted copy of S/Bill meant for DEPB Licence shall be released thereafter for printing.

Registration of DEPB Licence:

The DEPB Licence in respect of exports made from this customs station will be required to be registered at the same station. Before registration, the concerned officer will verify the S/Bill(s) in the Licence from the computer ensure that exports have been affected and value mentioned is as determined by customs at the time of export. In cases of S/Bills assessed

provisionally, the verification will not be possible because S/Bill will not be in the verification queue. The exporters are advised to obtain licences for the items exported un DEPB scheme and not for non-DEPB items. If the lower value for credit purposes has been accepted at the time of export, the licenses shall be obtained only for such lower value and not for FOB value declared in S/Bill or as per Bank realisation certificate. Similarly in cases where market value of the goods is less than twice the credit availed, the licence shall be obtained for 50% of the present market value of the goods. The computer at the time of registration of licence will calculate admissible credit on the basis of exchange rate on the date of realisation of export proceeds (as per bank realisation certificate) for DEPB items only and at customs approved value at the time of export. If the amount of licence is more than the amount of credit calculated by the system, it will not be possible to register a licence and reference will be made to DGFT for correction of amount of credit. If the amount of credit as per customs computer matches with the credit as per DEPB licence, computer will generate printout regarding verification of the exports giving details like S/Bill No. date , rate of credit, FOB value as approved by customs and amount of credit etc. DEPB licence will be registered on the basis of printout of verification report duly signed by AC/DC (Export). If a DEPB Licence is having S/Bills exported from other ports in the same city the exporters can get the licence registered at any of the ports from where he intends to import the goods in the city after verification about exports from other ports from where exports were affected. The same procedure will be followed for DFRC Licences also.