5% Entitlement Rate under VKGUY Scheme, for shipments under Duty Drawback Scheme
The DGFT has clarified that where export is under DEPB Scheme, for claim of DEPB only for Packing Material, exporters are entitled to VKGUY Scheme benefits @ 5% of Fob Value of Exports.
It has been similarly decided that wherever Duty Drawback Rate is up to 1% only (including both Customs & Excise components), such exports under Duty Drawback Scheme are entitled to VKGUY Scheme benefits @ 5% of Fob Value of Exports.
It is also clarified that since the above provision (as in 2 above) was introduced in FTP ( RE2006 ), this provision applies for VKGUY Scheme benefits on exports made on or after 1.4.2006.
DGFT Policy Circular No. 03 (RE-2008)/2004-2009, Dated: April 24, 2008