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PUBLIC NOTICE No. 63/2002-07 dated 17.2.2003
Guidelines for the issuance of supplementary DEPB on account of the factoring of special additional duty (SAD)

In exercise of powers conferred under paragraph 2.4 of the Export and Import Policy, 2002-07, the Director General of Foreign Trade hereby formulates the following guidelines for the issuance of supplementary DEPB on account of the factoring of special additional duty (SAD) in the computation of DEPB rates.

Attention is invited to PN No. 62 dated 17.2.2003 notifying revised DEPB rate for the shipments where the date of order of Let Export is on or after 1^st April, 2002.

1.     In cases where the exporter has not applied for DEPB credit in respect of shipping bills where date of order of Let Export is on or after 1^st April, 2002, he can apply for the DEPB with new rates notified by Public Notice No.62 dated 17.2.2003. Such applications shall be filed in the appendix 10C alongwith prescribed documents as per procedure given in Handbook (Vol.1)  

2.     In cases where the exporter has already applied for DEPB credit by 18th February, 2003 in respect of shipping bills where date of order of Let Export is on or after 1^st April, 2002 ,the licensing authority shall issue the original DEPB as per the rates applicable on the date of order of Let Export (without giving effect to the new rates notified by Public Notice No. 62 dated 17.2.2003). However, if the DEPB has not been printed by 20th February 2003, the exporter may be asked to revise his claim as per the new rates notified by Public Notice No. 62 dated 17.2.2003 as per procedure stated in paragraph 1 above.

3.     a) In cases where the exporter has already obtained DEPB in respect of shipping bills where date of order of Let Export is on or after 1^st April, 2002, the exporter shall apply for one single supplementary DEPB for additional claim on account of difference between the revised rates notified under Public Notice No. 62 dated 17.2.2003 and the rates applicable on the date of order of let export. if any. Such applications shall be filed manually at the concerned licensing authority in the format as given in Annexure to this Public Notice. Only TR for the requisite fee shall be submitted with the application. No other document shall be required to be furnished.

b) The exporter while applying for a single claim shall have the option to obtain the supplementary DEPB for all transferable/ actual user DEPB ( the exporter shall have the option to combine either all transferable DEPBs or all actual user DEPBs from a specified port. Combination of transferable DEPB with actual user DEPB and vice-a-versa shall not be permitted) in the following manner:-

                        i.         Separate supplementary DEPBs for each of the DEPBs issued earlier in respect of shipping bills where date of order of Let Export is on or after 1^st April, 2002,

                       ii.         One consolidated supplementary DEPB, for each port of registration, for all the past DEPBs issued earlier in respect of shipping bills where date of order of Let Export is on or after 1st April, 2002.

                     iii.         Portwise split up supplementary DEPBs shall be issued by the concerned licensing authority to make the DEPB supplementary value near Rs. 5.00 lakhs. The computer would do this split up and the exporters are not required to indicate this split up combination in the application form.

                    iv.         The option will be irrevocable and no request to change the options will be entertained once application has been filed at the counter.

c.     Licence fee shall be at rates as specified in Appendix–29 of the Handbook of Procedures (Vol.1). However, the licence fee shall be calculated on a consolidated supplementary DEPB value basis and deposited in lump sum alongwith the application irrespective of the option exercised by the exporter in paragraph 3(b) above. No additional fee shall be charged for splitting up the DEPB claims as per the option exercised by the exporter.

d.     Last date for filing such DEPB supplementary claims with the concerned licensing authority will be 30^th September, 2003.

e.     The original DEPB licence holder (not the transferee) will only be eligible to file supplementary claim for all the shipping bills where date of order of Let Export is on or after 1^st April, 2002.

f.      The regional licensing authorities shall endorse the supplementary DEPBs with endorsement that the same is in continuance of the earlier DEPB No(s) ______ dated _____ so that exporters may not face any problem in the verification of the DEPB from the Customs.

g.     The supplementary DEPB shall be valid for a period of 12 months from the date of its issuance.

h.     The FOB value on the supplementary DEPB shall be the same as the FOB value of the original DEPB and the CIF value of imports against supplementary DEPB shall be restricted to the FOB value so imposed. The condition as mentioned in paragraph 4.46 stand relaxed so as to ignore the FOB value imposed on the original DEPB.

i.      The provision of supplementary cut under paragraph 9.4 of the Handbook of Procedure shall not be applicable for such supplementary claim.

j.      In cases where the original claim was subject to late cut, the supplementary claim shall also be subjected to the same percentage of late cut.

k.     In cases where the original DEPB was issued with actual user condition, the supplementary DEPB shall also be issued with actual user condition. However, if subsequently applicant furnishes proof of having realised the export proceeds, the licensing authority may endorse transferable condition on such supplementary DEPB.

This issues in public interest. 

(L. MANSINGH)
Director General of Foreign Trade

(File No: 01/94/ 180/ SAD in DEPB/AM03/ PC IV)

Annexure to Public Notice No 63 dated 17.2.2003

APPLICATION FORM FOR SUPPLEMENTARY DEPB ON ACCOUNT OF FACTORING IN SAD IN DEPB RATE COMPUTATION

______________________________________________________________________

Note: Please submit two copies of this application form.

IEC Number: ..................................... Branch Code :....................................

DECLARATION/UNDERTAKING

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1.     I/We hereby declare that the particulars and the statements made in this application are true and correct to the best of my/our knowledge and belief and nothing has been concealed or held therefrom.

2.     I/We fully understand that any information furnished in the application if proved incorrect or false will render me/us liable for any penal action or other consequences as may be prescribed in law or otherwise warranted.

3.     I/We undertake to abide by the provisions of the Foreign Trade (Development and Regulation) Act, 1992, the Rules and Orders framed thereunder, the Export and Import Policy and the Handbook of Procedures.

4.     I/We hereby declare that no supplementary DEPB has been claimed on account of revised DEPB rates as per Public Notice No. 62 dated 17.2.2003 earlier pertaining to the file numbers mentioned in column 5 of the application form.

5.     I/We further declare that no export proceeds are outstanding beyond the prescribed period as laid down by the RBI, or such extended period for which RBI permission has been obtained.

6.     I hereby certify that I am authorised to verify and sign this declaration as per Paragraph 9.9 of the Policy.

7.     I/We further declare that in case of non realisation of export proceeds or lesser realisation of export proceeds, we shall pay, in cash, an amount equivalent to the DEPB entitlement already obtained on the non realised or lesser realised value of export proceeds together with 15% interest reckoned from the date of duty free imports effected under DEPB to the date of payment.

Signature of the Applicant:..............

Date :          

Place:                                   

----------------------------------------------------------------------------------------------------------------------------------Documents to be enclosed with the application form
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1.     Bank Receipt (in duplicate)/Demand Draft evidencing payment of application fee in terms of Appendix-29.