24 September 2012
What benefits can a merchant exporter avail? Can the SAD be exempted for the merchant exporters? If A if Manufacturer Exporter in China/Taiwan/Srilanka and B is Merchant Exporter in India then how B can be benefited being a merchant exporter? Is there any procedure to exempt SAD? And what are the incentives that B can avail through various schemes?
It would be very helpful for me if you explain the answers in detail & solve my query as soon as possible.
24 September 2012
To the reply of Mr. Ramesh I would like to add there are few schemes like:
DEPB
SHIS ( For Status Holders)
Interest Subvention can be received on certain prescribed products from RBI. You have to apply to your Banker if you have taken limits and interest is charged on them.
25 September 2012
Thanks Mr. Ramesh and Rama Krishnan for keeping me posted. You never know Govt my again reintroduce DEPB, It was a general discussion sir and the querist wanted to know abt the schemes, if companies have depb licence in hand still they are marketable.
B is Merchant Exporter and exports directly from China to US without importing it to India. In this case how B will be benefited as a merchant exporter?B is only a Merchant exporter and exports goods from a manufacturing from China to US. I have researched a lot that all the benefits will be applicable to manufacturer & not to the Merchant Exporter. Even Advance License benefits are applicable to Manufacturer. Please suggest how the Merchant Exporter will be benefited?
I asked a question on process but never got a reply.
To my understanding
1. If you are picking up goods from China and exporting direclty from there to US, then EXIM policy does not extent any Export incentives. But Such trade is increasing now and it should be represented to Ministry of Commerice for granting some sort of Export incentives to boost such trade.
2. If you are importing the goods from China, paying customs duty, then exportting as it is to US, then also at the most what you can get is , refund of all customs duties paid , under sec 74 of customs Act 1962. If you do value addtion and then export, then you can claim the applicable export incentives on such products.
26 September 2012
Thank you Krishnan Sir and Verma Sir for your replies. I really appreciate them. One more query I have is, now its clear that in the above case Merchant exporter wont be benefited by any means. But if Merchant exporter has the DEPB scrips which he got in the past can he use them for exempting import duties like SAD,etc if he is importing goods from China to INDIA? Although DEPB scheme has come to an end, what use can he make of the pending DEPB scrips that he already had?
26 September 2012
Please one more question I want to ask. If Merchant Exporter is importing goods from China/Srilanka/Taiwan to India in order to sell it in the domestic market and not to EXPORT IT ANYWHERE. In this case what all benefits can the Merchent Exporter be availed? Let me clear no Value addition is done and the imported product is sold as it is in the domestic market. (Product-Rubber/Steel)
Answer -1 Normally DEPB Licences are issued with a validty of 24 months. you can very well use them for all duties including SAD,if the licence is valid. The expiry is for claiming DEPB incentive on exports and issuance and not on utilisation. Anwer- 2- No benefit except you can avail some concessional duty , if there is afree trade agreemnt from that country/ or some duty relaxation under customs notifications, if any for that item
26 September 2012
Thank you Sir for your expert replies. I really appreciate them. I am satisfied with all your answers and it would be really helpful for me if you come across any scheme that would benefit Merchant exporter then please let me know. Thank you once again for your replies.
CAclubindia
