Ministry of Commerce & Industry gives up on experts to script DEPB
The deptt of commerce has decided to work on a new alternate scheme to DEPB of their own .The deptt expects that the existing popular DEPB scheme will be allowed to continue till a new alternate is found as the common goods & services tax will be in force by 2010 & then it will be easier to implement the new scheme.
While the Finance Ministry has extended the DEPB scheme by one year,the Commerce Ministry hope that it will be allowed to be continued for another three years.The expert committee has so far been ineffective in finding a viable alternate to the DEPB
DEPB scheme is designed to reimburse the basic & special custom duty paid by the exporter on imports .However,since the reimbursement is based on pre determined rates,in the form of transferable scrips that can be traded to other exporters,it is not WTO compatiable.
The commerce deptt is hopeful that once a common GST is implemented,it will be easier to replace the scheme with a WTO compliant scheme
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