Procedural Simplifications

A] DUTY EXEMPTION SCHEME : As suggested by the Trade and Industry, instead of number of schemes like Quantity Based Advance Licence (QBAL), Value Based Advance Licence (VABAL), Special VABAL Schemes in respect of Electronics, Engineering, Ready made Garments, Pharmaceuticals and Pass Book Scheme, the new EXIM Policy has only two schemes i.e. Advance Licensing Scheme corresponding to QBAL and a new scheme known as Duty Entitlement Pass Book Scheme (DEPB).

DEPB Scheme incorporates the concept of the old Pass Book but with simplified procedures and greater coverage and transparency in the matter of giving credit entitlements. The entitlement rate will be pre-determined so that the exporters at the time of exports can do their costing accordingly. It is a transparent scheme and does away with any discretion to the Licensing Authority or Custom Authority and can be availed on Pre-Export/Post-Export basis.

This scheme is very easy to operate and the exporter has to come to the Licensing Authority only once for getting the credit under post export DEPB. This should help the exporter to a great extent as there were many complaints of delay in getting credit under the old Pass Book Scheme.

Trade and Industry had requested for extension of old Pass Book Scheme to other ports. Accordingly, DEPB has been extended to all the ports for which Advance Licences facility is available.

Trade and Industry had asked for making the credit under the old Pass Book Scheme, transferable. Under DEPB, the credit can be transferred within the same port of Registration. This Scheme covers both Manufacturer Exporter as well as Merchant Exporter.

B] Gem and Jewellery Schemes : Under the Gem & Jewellery REP Scheme, third party exports have been allowed so that the small exporters are able to market their products in the international market and are able to claim REP licences based on disclaimer certificate from the third party.

The facility of bulk licence for import of rough diamonds has been further liberalized and now the bulk licence holder can import from any source and not necessarily from DTC London.

C] Net Foreign Exchange Earning : The definition of Net foreign Exchange earning for getting recognition as EH/TH/STH/SSTH, for claiming SIL on NFE basis and for discharging Export Obligation under Zero Duty EPCG Scheme, has been made simpler and unambiguous. Only the value of licences issued excluding the value of Special Import Licences and EPCG licences will be deducted from the FOB value of exports to arrive at NFE.