INTEREST CALCULATION ON DEPB REVERSAL

[SANJEEV JADHAV]

Dear Sir, we have re-imported goods due to rejection from our customer originally exported under DEPB scheme. My query is regarding calculation of interest on DEPB reversal. Please clarify whehter we have to pay interest from date of shipping bill or from the date of issue of DEPB license. If their is any circulare or notification in this regard please be quoted. Also inform rate of interest on DEPB reversal.

AI Summary

Interest on DEPB Reversal: Calculate from Bill of Entry Date; 18% Interest if License Used A query was raised regarding the calculation of interest on the reversal of the Duty Entitlement Passbook (DEPB) scheme following the re-import of rejected goods. The discussion focused on whether interest should be calculated from the date of the shipping bill or the DEPB license issuance. Responses indicated that if the DEPB license was utilized, duty and interest at 18% from the Bill of Entry date are payable. If not utilized, the license can be surrendered to the Directorate General of Foreign Trade (DGFT). Another response noted the interest rate as 15%, dependent on the DEPB issuance date.