Entrepreneurship Development and Communication Skills

7.3.3.Duty Exemption / Remission Schemes of Exim Policy

 

The Duty Exemption Scheme enables import of inputs required for export production.  It includes the following exemptions.

Duty Drawback:- The Duty Drawback Scheme is administered by the Directorate of Drawback, Ministry of Finance.  Under Duty Drawback scheme, an exporter is entitled to claim Indian Customs Duty paid on the imported goods and Central Excise Duty paid on indigenous raw materials or components.

Excise Duty Refund:- Excise Duty is a tax imposed by the Central Government on goods manufactured in India.  Excise duty is collected at source, i.e., before removal of goods from the factory premises.  Export goods are totally exempted from central excise duty.

Octroi Exemption:- Octroi is a duty paid on manufactured goods, when they enter the municipal limits of a city or a town.  However, export goods are exempted from Octroi.

Duty Remission Scheme: It  enables post export replenishment/remission of duty on inputs used in the export product.

Duty Entitlement Pass Book (DEPB)

 The objective of DEPB Scheme is to neutralize the incidence of basic custom duty on the import content of the exported products.

Duty free Replenishment certificate(DFRC)

Under this  scheme, import incentives are given to the exporter for the import of inputs used in the manufacture of goods without payment of basic customs duty.  Duty Free Replenishment Certificate (DFRC) shall be available for exports only up to 30.04.2006 and from 01.05.2006 this scheme is being replaced by the Duty Free Import Authorization (DFIA) 

Duty Free Import Authorisation(DFIA)

Effective from 1^st May, 2006, Duty Free Import Authorisation is issued to allow duty free import of inputs which are used in the manufacture of the export product (making normal allowance for wastage), and fuel, energy, catalyst etc.,  which are consumed or utilized in the course of their use to obtain the export product.  Duty Free Import Authorisation is issued on the basis of inputs and export items given under Standard Input and Output Norms(SION).