Promotional Measure

1. Duty Free Replenishment Certificate (DFRC)

• DFRC is a Duty Remission Scheme.
• DFRC is allowed to both Manufacturer Export as well as Merchant Exporter.
• DFRC is issued for imports of inputs used in the export products as per Standard Input Output Norms (SIONS) as notified by DGFT.
• DFRC is not subject to actual user condition.
• DFRC is issued for all items of SIONS except sensitive items.
• DFRC is valid for 18 months.
• DFRC is issued with uniform Value Addition of 25%.
• DFRC can be issued for Physical as well as Deemed Exports.
• DFRC is transferable.
• Goods imported against DFRC are exempted from Basic Custom Duty and Special Additional Duty and Safeguard Duty.
• DFRC is issued only for those products for which SIONS exits.

2. Advance License 

• Advance License is issued under Duty Exemption Scheme.
• Advance License holder can import/procure raw materials, components, Consumable, spares (10% of value of license), fuel, oil & catalyst, packing materials etc.

• Advance License is granted to Manufacturer Export or merchant exporters tied to supporting manufacturers.
• Good imported against V are exempted from payment of Basic Customs Duty, CVD, Anti Dumping Duty and Safeguard Duty.
• Advance Licence is granted for Physical Export, Intermediate Supply and also for Deemed Export.
• Advance License is valid for 18 months.
• Advance License is subject to Standard Input Output Norms (SIONS) as notified by DGFT.
• Advance License is issued on the Actual User Condition.
• Advance Licence requires only Positive Value Addition.
• The exporter obligation is to be fulfilled within 18 months of the issue of the Advance License.
• Goods can be procured from indigenous suppliers.
• Advance Licence is useful when a limited number of inputs are required in large quantities or drawback rates, DFRC and DFPB rates are not attractive.
• Disadvantages are Actual User Condition, Non-transferability and Non-availability to merchant exporter without supporting manufacturer.

3. Duty  Entitlement Passbook Scheme(DEPB)  

• The DEPB facility can be availed by the exporter in lieu of Licensing Facility

• Under DEPB scheme the exporter is given credit as a specified percentage of FOB Value of export made in freely convertible currency.

• The DEPB rates are fixed by considering the incidence of basic custom duty and special addition duty on the value of Deemed Imported Inputs going into the exporter product as per SIONS

• It is valid for 12 months up to the last day of the month expiry.

• DEPB is available to Manufacture Exporter as well as Merchant Exporter.

• DEPB is a transferable instrument.

• DEPB is allowed only when notified DEPB rate is available for export item.

• Sometime DEPB rates are subject to value cap and present market value.

 

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