F.No. S/16-DEPB-Misc-692/ 2002 -
Imp :
Exp :

PUBLIC NOTICE NO. 87/2002 Date : 24/7/2002

New EXIM policy 2002-2007 -reg.
Attention of all the Exporters/ Importers, CHA’s and other concerned is drawn to 2002-2007 EXIM policy, one of the Customs Notifications issued by Department of Revenue is notification no. 45/ 2002 – Customs dated 22.4.2002 which has been issued to operationalise DEPB Scheme as contained in the new EXIM policy. Whereas the earlier Custroms Notification No. 34/97 Cus. dated 7.4.1997 issued under DEPB Scheme did not require debiting the element of SAD in the DEPB scrip for availing SAD exemption, 45/2002 makes it mendatory to debit the element of SAD in the DEPB scrip for the purpose of availing SAD exemption or goods cleared against DEPB Scrip.

2. After 1.4.2002, DGFT Authorities have issued DEPB Scrip. Scrutiny of these scrips reveal that whereas some DEPB Scrips, where export had taken place prior to 1.4.2002 have been issued under 2002-2007 EXIM Policy, cases where exports have taken place on or after 1.4.2002, DEPB Scrips have been issued under 1997-2002 EXIM Policy. This has created confusion in the minds of Customs filed officers as well as trade as to which DEPB scrip will be governed by which EXIM Policy and whether the lement of SAD will be required to be debited in it.

3. In order to sort out this problem, the matter was discussed between officials of DOR and DGFT. The dividing line for issue of a DEPB Scrip under a particular policy is the “let export date” of the Shipping Bill. In all cases where “let export date” is prior to 1.4.2002, such exports under DEPB Scheme would be governed by 1997-2002 EXIM policy and Customs Notification No. 34/97 Cus. In respect of such DEPB Scrips, exemption from SAD would be available without the requirement of debiting the element of SAD in DEPB Scrips. Similarly in all cases where let export date is on or after 1.4.2002, such exports shall be governed by 2002-2007 EXIM Policy and Customs Notification No. 45/2002. Hence in respect of such Scrips, SAD exemption would be available subject to debiting the DEPB scrips for the element of SAD.

4. DGFT Authorities have also issued Public Notice No. 14/2002 –07 dated 31.5.2002 to clarify the position.

5. The practice of assessment against provisional duty bonds for SAD in case of licences issued after 1.4.02 under para 7.38 of 97-2002 EXIM Policy is discontinued. All the cases where such PD Bonds have been taken will be finalised on the basis of above clarification.

Sd/-
(AHMED HUSSAIN)
Commissioner of Customs (E.P.)
Mumbai

[Board’s Circular No. 39/ 2002 Cus issued from F.No. 605/201/2001 Dbk]

Attested by
(NAGESH PATHAK)
DY. COMMISSIONER OF CUSTOMS
DEPB/ GR. VII

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