TMI Bloghanges made in Advance License, DFRC, DEPB and EPCG Schemes vide Exim Policy 2002-07 – regX X X X Extracts X X X X X X X X Extracts X X X X ..... dvance License Scheme Advance License scheme is contained in chapter -4 and paras 4.1 4.1.1 to 4.1.14 of the Exim Policy. In terms of para 4.1.1 of the exim policy advance licence can be issued for permitting duty free import of inputs to be utilized in the export products after making normal allowance for wastage . The Scheme also permit duty free import of fuel, oil, energy, catalyst etc. which are consumed during the manufacturing process. Duty Free Import of mandatory spares upto 10% of the CIF Value of licence is also permitted as earlier. Advance licence can be issued for physical export, intermediate supplies and deemed exports. Annual Advance Licence Scheme has however, been discontinued. Both Advance License and the materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cense Scheme outlined in earlier Circulars issued from time to time shall continue to be followed with the above modifications. Customs Notification Nos. 43/2002 - Cus. Dated 19.4.2002 47/2002 - Customs dated 22.4.2002 have been issued to operationalise this Scheme. 2.2 DFRC Scheme DFRC Scheme was first announced in Exim Policy 2000 - 2001 with effect from 1.4.2000 DFRC Scheme has been continued in Exim Policy 2002 -07 with some minor changes. The earlier DFRC Scheme announced in 2000-01 Exim Policy required that for the purpose of allowing DFRC benefit to imported inputs used in the resultant export product, the quality, technical characteristics and specifications of the inputs under import should be the same as those used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 22.4.2002 has been issued to operationalise this Scheme. 2.3 DEPB Scheme DEPB Scheme has been continued in the Exim Policy 2002-07 for some more time. Under the new DEPB Scheme, DEPB scrips would be issued only on post-export basis (i.e. to say on completion of exports) as pre/export DEPB Scheme has already been discontinued. The provisions of DEPB Scheme are contained in Para 4.3 and 4.3.1 to 4.3.5 of the Exim Policy. One significant change in the new DEPB Scheme is that in terms of Para 4.3.5 of the Exim Policy even excise duty paid in cash on inputs used in the manufacture of export product shall be eligible for brand rate of drawback as per rules framed by Department of Revenue which the earlier DEPB Scheme did not permit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whereas the normal EO period for EPCG License of value not exceeding Rs. 100 crores has been maintained at 8 years, in respect of licenses of value Rs. 100 crores or more, a longer EO period of 12 years has been prescribed. The four blocks in respect of such EPCG licence would comprise of 1st Block - 0-5 years 2nd Block - 6-8 years 3rd Block - 9-10 years 4th Block - 11-12 years The new EPCG Scheme also permits granting extension of block-wise EO period more that once during the total EO period by competent authority. In addition, in respect of EPCG License having total EO period of 8 years, the Scheme al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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