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Deec Depb

DEEC stands for Duty Exemption Entitlement Certificate. It allows firms to import components on a duty free basis by applying for an Advance Authorization from the regional DGFT. Firms can import raw materials and components needed for manufacturing finished products that will then be exported. The DEEC must be prepared by the firm and certified by regional excise and customs authorities. Alternatively, firms can use the Duty Entitlement Passbook Scheme, where duty paid on imports is granted as duty credit against exports at a percentage of export value set by the DGFT. The DEPB allows duty free import of raw materials, components and packaging for exports and is valid for 12 months.

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206 views2 pages

Deec Depb

DEEC stands for Duty Exemption Entitlement Certificate. It allows firms to import components on a duty free basis by applying for an Advance Authorization from the regional DGFT. Firms can import raw materials and components needed for manufacturing finished products that will then be exported. The DEEC must be prepared by the firm and certified by regional excise and customs authorities. Alternatively, firms can use the Duty Entitlement Passbook Scheme, where duty paid on imports is granted as duty credit against exports at a percentage of export value set by the DGFT. The DEPB allows duty free import of raw materials, components and packaging for exports and is valid for 12 months.

Uploaded by

Kalpesh Thaker
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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DEEC means Duty Exemption Entitlement Certificate.

It is a promotional measure from the government for import of input components required for the purpose of manufacturing of the export products on duty free basis. i.e. the firm can import components on duty free basis by applying for an Advance Authorization from the regional DGFT. the authorisation issued by the DGFT can be utilised for duty free import of raw materials & Components required in the manufacturing of the finished products which will be exported by the firm. the DEEC has to be prepared & maintained by the firm and is to be attested by the regional excise authority & the customs.

Those who don't want to take the route of Advance License have option of Duty Entitlement Passbook Scheme. Customs duty paid on imported inputs are granted duty credit against exports. It is granted as percentage of FOB value. The Director General of Foreign Trade notifies the rates. DEPB is issued only for exports made in freely convertible currency. DEPB holder can import raw materials, component, parts, packaging material etc. It is valid for 12 months from date of issue. DEPB or goods imported against it are freely transferable. The port from where goods are to be imported shall be stated on DEPB. Additional customs duty adjusted from DEPB shall not eligible for CENVAT/drawback. Exports made under DEPB are not entitled for drawback, but additional customs duty paid in cash on inputs under DEPB is eligible for CENVAT/drawback as per rules of department of revenue. Read more: http://wiki.answers.com/Q/What_is_difference_between_DEPB_and_Advance_Licence#ixzz 1hGHEEKmm

DEPB stands for Duty Entitlement Pass Book. It is a scheme which is offered by the Indian government to encourage exports from the country. DEPB means Duty Entitlement Pass Book to neutralise the incidence of basic and special customs duty on import content of export product. This is provided by way of grant of duty credit against the export product at specified rates. The DEPB Scheme which was notified on 1/4/1997 consisted of (a) Post-export DEPB and (b) Pre-export DEPB. The pre-export DEPB scheme was abolished w.e.f. 1/4/2000. Under the post-export DEPB, which is issued after exports, the exporter is given a duty entitlement Pass Book at a pre-determined credit on the FOB value. The DEPB allows import of any items except the items which are otherwise restricted for imports. Source: Government of India, Department of Commerce

Read more: http://wiki.answers.com/Q/What_is_DEPB#ixzz1hGHNGU74

Various schemes like EOU, SEZ, DEEC, manufacture under bond etc. are available to obtain inputs without payment of customs duty/excise duty or obtain refund of duty paid on inputs. In case of Central Excise, Manufacturers can avail Cenvat credit of duty paid on inputs and utilise the same for payment of duty on other goods sold in India, or they can obtain refund. Schemes like manufacture under bond are also available for customs. Manufacturers or processors who are unable to avail any of these schemes can avail duty drawback. Here, the excise duty and customs duty paid on inputs is refunded to the exporter of finished product by way of duty drawback. Section 75 of Customs Act provide for drawback on materials used in manufacture or processing of export product. Section 37 of Central Excise Act allows Central Government to frame rules for purpose of the Act. Under these powers, Customs and Central Excise Duties Drawback Rules, 1995 have been framed. It may be noted that duty drawback under section 75 is granted when imported materials are used in the manufacture of goods which are then exported, while duty drawback under section 74 is applicable when imported goods are re-exported as it is and article is easily identifiable.

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