MINUTES OF THE DEPB COMMITTEE MEETING NO. 11/AM’08 HELD ON 26.03.2008 UNDER THE CHAIRMANSHIP OF SHRI TAPAN MAZUMDER, JT. DGFT.

Minutes of the 10th meeting held on 7.3.2008 were ratified.

Cases discussed and the gist of the decision taken thereof are reproduced below. Names of the officers who attended the meeting are at Annexure-I. Detailed decision of the cases may please be seen at Annexure-II

Deferred Cases:-

S.No. / Name of the Firm/Office
(Reference received from) / File No. / Subject / request / Decision Taken
1. / Request received from M/s. Paras Dehydration Co. Rajkot / 01/85/162/533/AM08/DES-VI / Clarification whether export product
Dehydrated Onion (Kribbed, minced or chopped) is covered for DEPB benefits on packing material under Sl. No. 22-D of Misc. Product Group (Product Code 90) / Approved for clarification

New Cases

1. / M/s Ansar Chemical Ltd, Mumbai / No.01/82/54/1/AM08/ DES-III / Fixation of DEPB rate for Export of Menthol BP/USP against SION Sl. No.A-257 / Approved for clarification
2. / M/s. Gujarat Glass Pvt Ltd, Mumbai / No.01/82/162/917/ AM07/DES-III/IV / Fixation of DEPB rate for export product Glass Bottles (Non-Yellowish Pink Coloured Bottles) against SION at A-3016. / Approved for fixation of DEPB rate
3. / Jt. DGFT,Bhopal / No.01/94/180/1119/ AM08/PCIV-(B) / Clarification regarding admissibility of DEPB under S.No.22-D for export item “Indian De hulled Soyabean Meal (Raw Material of Animal Feed- SION No. E-42)” / Deferred
4. / M/s Hero Honda Motors Ltd, Delhi / No.1/94/180/1120/AM08/PC-IV(B) / Clarification on the eligibility of DEPB if Chassis (Frame) of the Motorcycle is exported in 6 pieces and fuel tank in 3 pieces alongwith the complete Motor Cycle in CKD condition. / Approved for clarification

Annexure-I

11th Meeting of DEPB Committee was held on 26.03.2008 at 2.00 PM under the chairmanship of Shri Tapan Mazumder, Jt. DGFT. The following officers were present:-

S.No. Name of the officers &Department

their Designation

1.Shri A.K. Singh, Jt.DGFTDGFT

2.Shri Shaish Kumar, Ind. AdviserDIPP

3.Shri B.D. Ghosh, Jt. Ind.AdviserDeptt. of Steel

4.Shri Jagmohan Singh, Under Secy.Deptt. of Revenue

5.Shri S.S. Sah, Dy.DGFTDGFT

6. Shri T.M. Skaria, Dy.DGFTDGFT

7. Shri C. Gangadharan, Dy.DGFTDGFT

8. Shri Prakash Chand, FTDO DGFT

Annexure -II

Individual cases in the agenda were taken up for discussion and decision taken thereof is detailed below:-

Deferred Cases:-

DES-VI Section

Case No.1 / Request received from M/ s Paras Dehydration Co. Rajkot
DEPB Meeting Dt.26.3.2008 / 01/85/162/533/AM08/DES-VI
Clarification whether export product Dehydrated Onion (Kribbed, minced or chopped) is covered for DEPB benefits on packing material under Sl. No. 22-D of Misc. Product Group.

The Committee members considered the case which was deferred on 15.2.2008 as the Department of Revenue wanted time for examination of the case. The matter was discussed again in this meeting wherein it was felt that the export product “Dehydrated Onion (Kribbed, minced or chopped)”is covered under SION Sl No. E-11. Committee noted that E-11 of SION is for the products, “Fruit Slices and other edible products / Chutneys / Condiment Paste / Vegetables / Pickles packed in OTS Cans / Glass containers / Packed in relevant packing material”. The Committee therefore decided that the export product “Dehydrated Onion (Kribbed, minced or chopped ) is

entitled for DEPB rate available under Misc. Group Product (i.e. Sl. no. 22D of DEPB Product Group Code 90) and to clarify accordingly.

New Cases

DES-III Section

Case No.1 / M/s Ansar Chemical Ltd, Mumbai
DEPB Meeting Dt.26.03.2008 / No.01/82/54/1/AM08/ DES-III
Fixation of DEPB rate for Export of Menthol BP/USP against SION No.A-257

Committee considered the case as per agenda and noted that written comments furnished by Deptt. of Revenue. The Committee noted that Norms Committee vide its meeting No.23/08 dated 19.09.2009 stated that firm has supplied only one bill of entry which is insufficient for fixation of DEPB rate for export product “Menthol BP/USP”. Accordingly, the Committee members decided that since the export product is covered under SION Sl.No.A257, the product is entitled for DEPB for residual category under DEPB Sl. No.22D of Misc. product Group.

DES-III/IV Section

Case No.2

/ M/s. Gujarat Glass Pvt Ltd, Mumbai
DEPB Meeting Dt. 26.3.2008 / No.01/82/162/917/AM07/DES-III/IV
Fixation of DEPB rate for export product Glass Bottles (Non-Yellowish Pink Coloured Bottles) against SION at A-3016.

The Committee considered the case as per agenda. The Committee noted that the Norms Committee vide its meeting No.39/08 dated 2.1.2008 fixed value addition at 50% as against value addition arrived as per the facts and figures furnished by the firm as 19.64% for the export product “Glass Bottles (Non-Yellowish Pink Coloured Bottles)” appearing at SION Sl.No. A-3016. Taking into account the FOB value, CIF value and value addition (as recommended by NC) and the prevailing custom duty, the Committee decided to fix the DEPB rate for the export product as under:-

Export product:- Glass Bottles (Non-Yellowish Pink Coloured Bottles)

SION Sl. No. A-3016

FOB value :Rs. 28304 Per MT.

CIF value: Rs. 22733

Actual V.A. arrived at =24.5%

Value addition recommended by NC. :- 50%

Average basic custom duty: 5.01%

DEPB rate- {Average custom duty /(value addition + 100) } x 100

={ 5.01 /(50+100)}x100

= 3.34 %

Hence the Committee decided to recommend DEPB rate of 3% to DGFT for the product “Glass Bottles (Non-Yellowish Pink Coloured Bottles) appearing at SION Sl.No.A-3016.

PC-IV(B) Section

Case No.3 / Request received from the Office of Jt. DGFT, Bhopal
DEPB Meeting Dt.26.3.2008 / No.01/94/180/1119/ AM08/PCIV(B)
Clarification regarding admissibility of DEPB under S.No.22-D of products in DEPB rate schedule for export product “Indian De-hulled Soyabean Meal (Raw Material for Animal Feed) - SION No. E-42)”

Committee considered the case as per agenda. Committee noted that the clarification has been sought by RA Bhopal as to whether the export product “Indian De hulled Soyabean Meal (Raw Material for Animal Feed)” is covered under SION Sl. No. E-42, since the product description appearing at SION Sl. No. E-42 is “Soyabean Extraction (Soyabean de-oiled cake or meal)”.

Taking into account the facts given in the letter 5.3.2008 received from R.A. Bhopal it was decided to get the views from the Ministry of Agriculture before the matter is considered for a suitable clarification again. The case is therefore deferred.

PC-IV(B) Section

Case No.4 / M/s Hero Honda Motors Ltd, Delhi
DEPB Meeting Dt.26.3.2008 / No.01/94/180/1120/ AM08/PCIV(
Clarification on the eligibility of DEPB if Chassis (Frame) of the Motorcycle is exported in 6 pieces and fuel tank in 3 pieces along with the complete Motor Cycle in CKD condition.

The committee considered the case as per agenda. Committee noted that the issue under consideration was whether there would be any impact on the DEPB benefits if the Chassis or Fuel tank is sent in pieces and not as a single piece as part of complete Motorcycle, i.e., the applicant firm wants to know as to whether Chassis (Frame) of the motorcycle can be sent in 6 pieces and the Fuel Tank in 3 pieces along with the Motor Cycle in CKD condition.

Committee noted that the export product “Motor Cycle” is covered under DEPB S.No. 242/61- which specifies the product as “Motor Cycle (in CKD/SKD/CBU condition”. On detailed consideration, the committee felt that the benefit of DEPB under Sl.No.242 of DEPB Schedule would be available provided all parts of the Motor Cycle are shipped together as one consignment and not separately in different consignments and decided to clarify accordingly.