Reduction in DEPB Rate may affect Plastic Product Export
Through a public notice, issued on November 23' 2004, Director General of Foreign Trade (DGFT) has slashed DEPB rate for 94 products. The reduction has been between two to four percent.
Among the 94 items, there are 48 plastic products - mainly derivatives of ABS, LDPE, HDPE, polystyrene etc. Now DEPB rate in these categories are around 9 Percent - down from previous 11 - 13 percent.
Exporters are disappointed at this rate cut as - coupled with rising plastic price in domestic market - this may push up export price of plastic products. It may be noted that recent reduction of basic customs duty on plastic raw materials is limited only to a small part of the plastics chapter, the other duties are still remaining at 20 percent.
Thankfully, the value cap that defines the ceiling fob value of export beyond which the government does not allow DEPB has been maintained at previous level.
December 3' 2004
