duty exemption scheme

7/31/2019 Duty Exemption Scheme

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DUTY EXEMPTION

SCHEME



DUTY EXEMPTION SCHEME

PRESENTED BY:-

SANGRAM DESHMUKH

SANJU KUMARI

SATENDRA PANDEY



Contents

Introduction

Advance authorization

Advance license Advance release order

Advance licenses for the annual requirement

Re-import of exported goods under duty exemption scheme

Advance licenses for applicant with multi unit

Description of advance authorization



INTRODUCTION

Duty exemption scheme enable duty free import of inputs

required for export production.

Duty exemption scheme consist of :-

a] Advance authorization scheme

b] Duty free import authorization scheme



INTRODUCTION (cntd ….)

A duty remission scheme :-

(a). DFRC

(b). DEPB

(c). DBK



ADVANCE AUTHORIZATION

It is issued to allow duty free import of inputs, which arephysically incorporated in the export product.

Advance authorization are issued on the basis of the inputs andexports items given under SION. However, can also be issuedon the basis of Adhok norms or self declared norms.

Advance licenses can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer.



ADVANCE LICENSES

For advance licenses SION has been published an application

in “Ayaat-Niryaat” along with document prescribed there in shallbe submitted to the license authority concerned.

Export made against the Government of India/Exim bank line of

credit would be entitled for benefits under the license scheme.



ADVANCE RELEASE ORDER (ARO)

Indigenous sources/ State Trading Enterprises/ EOU/ SEZ/

EHTP/ STP/ BTP units in lieu of direct input has the sourcesthem against ARO.

Supplies may be obtained against the license from EOU/

EHTP/ BTP/ STP/ SEZ units, without conversion into ARO.



Advance License for Annual

Requirement

It can be issued on the basis of annual requirement for physical

exports, intermediate supplies or deemed exports.

If this status holders are holding the certificate as merchant

exporter, they are also entitled to the Advance License.



Re-import of exported goods under

Duty Exemption Scheme

Goods exported under Advance License/ DFRC/ DEPB may be

re-imported in the same or substantially the same form subjectmay be specified by the Department of Revenue.



ADVANCE LICENSE FOR APPLICANT

WITH MULTI UNIT

Transfer of advance license from one unit of the company to

another unit of the same company for manufacturing. No benefits of CENVAT.

To avail the facility all units should be in IEC certificate.



DUTY FREE REPLENISHMENT

CERTIFICATE

DFRC is issued to a merchant-exporter or manufacturer-

exporter for the import of inputs used in the manufacture of goods without payment of basic customs duty.

DFRC shall be issued on minimum value addition of 25%

except for items in gems and jewellery sector.



DUTY FREE REPLENISHMENT

CERTIFICATE

DFRC may be issued in respect of exports for which payments

are received in non-convertible currency.

DFRC shall be issued only in respect of products covered The

export products, which are eligible for modified VAT, shall be

eligible for CENVAT credit/ service tax credit.



Items of Export

The following items, if exported, would be eligible for the

facilities under these schemes

(a) Gold jewellery, including partly processed jewellery

(b) Silver jewellery, including partly processed jewellery

(c) Platinum jewellery including partly processed jewellery



Duty free import authorization (DFIA)

A duty free import authorization is issued to allow to free importof inputs are used in the manufacturer of the export product.



THANK YOU

duty exemption scheme

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