The Hindu Business Line : DEPB sops for steel exports revoked from July 12

THE Directorate General of Foreign Trade (DGFT) on Wednesday clarified that the suspension of Duty Entitlement Pass Book (DEPB) benefits for steel exports that was revoked on July 12 this year will have only prospective effect and not retrospective effect as was interpreted by some sections of the steel trade.

In a circular issued on Wednesday, the DGFT stated that it has received representations from the trade and industry as to whether the revocation of the suspended DEPB rates is prospective or not. In today's circular, the DGFT "clarified that the revocation of the suspended DEPB rate is prospective in effect from July 12, 2004."

The DGFT has also instructed all its regional offices to take action accordingly.

According to estimates available from the steel industry sources, the industry as a whole stands to lose around Rs 150 crore that they would have been able to claim if the revocation of DEPB was with retrospective effect.

According to a SAIL spokesman, this is unlikely to have any major impact on the company. "Presently, our exports are down by around 73 per cent during the first quarter of the current fiscal. In the last quarter of the last fiscal, when the DEPB benefits were suspended, our exports were down by around 66 per cent. We will not have impacted in any big way due to this," he said.

More Stories on : Steel | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page