POLICY CIR NO. 03/2008, DT. 24/04/2008
- Document type
- Circular
- Reference no.
- L
- Dated
Admissibility of 5% Entitlement Rate under VKGUY Scheme, for shipments under Duty Drawback Scheme where the Drawback Rate is up to 1% only (including both Customs & Excise components)
Admissibility of 5% Entitlement Rate under VKGUY Scheme, for shipments under Duty Drawback Scheme where the Drawback Rate is up to 1% only (including both Customs & Excise components).
2. In this regard, attention is invited to paragraph 3.8.2 of the Foreign Trade Policy 2004-2009. The second sentence was added in Para 3.8.2 in FTP (RE2006) and is reflected in FTP (RE2008) as under:
However, Duty Credit scrip benefits shall be granted only at a reduced rate of 3.5% of FOB value of exports (realized in free foreign exchange) in such cases where exporter has availed benefits under Chapter 4 of FTP for import of Agriculture Inputs (other than catalysts, consumables and packing materials) relating to export item under this scheme.
3. In terms of the above provision, it is, once again, clarified that where export is under DEPB Scheme, for claim of DEPB only for Packing Material, exporters are entitled to VKGUY Scheme benefits @ 5% of Fob Value of Exports.
4. It has been similarly decided that wherever Duty Drawback Rate is up to 1% only (including both Customs & Excise components), such exports under Duty Drawback Scheme are entitled to VKGUY Scheme benefits @ 5% of Fob Value of Exports.
5. It is also clarified that since the above provision (as in 2 above) was introduced in FTP (RE2006), this provision applies for VKGUY Scheme benefits on exports made on or after 1.4.2006.
This issues with the approval of Director General of Foreign Trade.
Sd/-
(A K Arora)
Dy. Director General of Foreign Trade