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DGFT allows incidence of SAD on inputs for DEPB rates

Our Bureau, New DelhiThursday, January 23, 2003, 08:00 Hrs  [IST]

The Directorate General of Foreign Trade (DGFT) has issued Public Notice allowing incidence of special additional duty (SAD) on the inputs to be taken into account for calculation of DEPB (Duty Entitlement Pass Book) rates. According to an official press release, the revised DEPB rates shall be notified shortly and shall cover the shipments where the date of order of "Let exports" is on or after 1/4/2002. As per the Public Notice, the Paragraph 4.37 pertaining to the "Duty Entitlement Passbook Scheme" is corrected as " The Policy relating to Duty Entitlement Passbook Scheme (DEPB) Scheme is given in Chapter-4 of the Policy. The duty credit under the scheme shall be calculated by taking into account the deemed import content of the said export product as per SION and the basic custom duty and special additional duty (SAD) payable on such deemed imports. The value addition achieved by export of such product shall also be taken into account while determining the rate of duty credit under the scheme." This will benefit the exporters exporting under DEPB Scheme.

 
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