Customs Duty Rates For Drug Industry By May 15

Customs duty credit rates for the drug industry, under the new duty entitlement pass book (DEPB) scheme, will be announced by May 15.

The rates, however, will be applicable to only those items that will result in value addition under the scheme.

Speaking at a meet organised by the Indian Drug Manufactures' Association (IDMA) on Saturday, S B Mohapatra, director-general of foreign trade (DGFT), said the rates under this scheme would come into effect prospectively. Transfer of credit from any other scheme to the DEPB scheme would not be allowed, he said.

At present, the exporters can use either the drawback scheme or the quantity-based advance licence (QABAL) for availing of export credit.

 

The value-based advance licence (VABAL) and the passbook scheme for customs duty credit have been withdrawn under the new exim policy.

Mohapatra said that an average customs tariff will be calculated on the basis of deemed import content of exports and the weightage given to components.

The formula for calculating credit availability was also outlined at the meet.

S K Bharadwaj, customs commissioner (Mumbai), said the customs department has already set up a green channel facility to expedite clearance of goods. Under this set-up, goods of export houses would not be held beyond 24 hours.

To keep a tab on unfair practices, he said, the government has evolved a mechanism by which it could compare prices quoted by Indian exporters with that mentioned by the foreign importer.

Under the DEPB scheme, exports and imports from all ports will be eligible for duty exemption. At present, credit of duty is allowed only in the case of imports and exports made from the 43 notified ports.

Bharadwaj said if the government fails to provide results of laboratory tests on samples within six months, the customs department would accept certificates of tests provided by the exporting companies.