CIR. NO. 21/2003, DT. 03/12/2003
- Document type
- Circular
- Reference no.
- G
- Dated
Methodology to calculate DEPB rates for drugs formulations in terms of Policy Circular no.20 dated 31.7.2002
Methodology to calculate DEPB rates for drugs formulations in terms of Policy Circular no.20 dated 31.7.2000
This matter was considered by Policy Interpretation Committee held on 23.9.2003 and the decision of the Policy Interpretation Committee is as under:-
The Committee notices that the Policy Circular no.20 dated 31.7.2000 regarding methodology to calculate the DEPB rate was issued. The Committee observed that the method of rounding off which basically means that if the fraction is less than 0.50, then it will be rounded to the nearest lower rate and if it is more than or equal to 0.50 then it will be rounded to the nearest higher rate, is a standard practice which is applied everywhere. The committee also observed that statistically, over a period of time, such a method would be revenue neutral and, therefore, the contention of Department of Revenue that it would result in excess outgo of revenue is not correct. The committee, therefore, decided to clarify that the method of rounding off may be adopted in these cases also.
Accordingly, it is clarified that while calculating the DEPB rates for export of products covered under formulations under schedule of DEPB rates, nearest rounded figure should be taken into consideration.
(Tapan Mazumder)
Dy.Director General of Foreign Trade
For Director General of Foreign Trade